Posts Tagged ‘assets and divorce’

What Do I Do if I Acquire Assets I Want To Protect After We Get Married?

Wednesday, March 27th, 2019

Usually, if someone has personal assets, such as stock options or an inheritance, they have to come to an agreement with their soon-to-be spouse to sign a prenup, which details the separation of marital assets in the event of a divorce. The term “protect” is used in the sense that by signing a prenup, you can protect your assets from being considered marital, thus ensuring they are not available for distribution upon divorce.

Is it too late if we are already married?

In some cases, a person may not acquire assets that they consider are worth protecting until, for example, 8 months into the divorce. At this point, you are no longer able to draft a prenup, as that is an instrument only available before the marriage. In this instance the couple would require a postnup, which achieves the same goal as a prenup, it is just signed after the individuals have married.

Enforceability and Disclosure of a Postnup

Something important to keep in mind is that full and fair disclosure is an important part of a valid and enforceable postnup. When each party enters into the agreement, they both must completely disclose to the other party of their assets, liabilities, and income. This should also include assets you are reasonably aware you will be acquiring in the near future, such as the situation listed above. If the information that one of the spouses provided was not transparent, the agreement will not be enforceable when the time comes to get divorced.

Alternate Reasons

Postnuptial agreements are sometimes made in reaction to an event or pattern of behavior after the initiation of marriage, that gives cause to creating a plan for divorce. Excessive gambling, drug or alcohol abuse and financial hardship are common catalysts for spouses hiring attorneys to draft postnups, but as stated before, it does not always have to be in reaction to a negative event.

3 Reasons Why You Should Get A Prenuptial Agreement

Saturday, February 2nd, 2019

Almost everyone has some type of asset: Regardless of whether an asset is personal or business owned, if it was acquired prior to the marriage, and you plan on continuing to own them during the marriage, it is advisable to get a prenup. In the event of a divorce, a prenup will dictate the distribution (or lack thereof) of premarital assets. A prenup also allows the original owner of said asset to retain it. In the event of a divorce, not only does this help to expedite the divorce process, since there is nothing to debate, but it also alleviates any stress or worry that you may not be able to keep the asset.

Divorce proceedings can take longer if finances need to be discussed: Since so many married couples end up co-mingling assets and other properties, it can be difficult to trace what is separate property and what is joint. A prenup can address whether or not there will be spousal support in the event of divorce, once again resolving a frequently battled topic without court intervention. Once again it helps to expedite the divorce process and alleviate any stress of ownership over the item. It is important to keep in mind, however, that the prenup must be deemed “fair” by the court at the time it is enforced.

Today, nearly half of all marriages end in divorce: Although it may not be the most romantic move, and brings into the realm of possibility that divorce can happen, it is important to protect yourself and your assets, since no one can predict how a marriage will turn out. Moreover, in the event of a divorce, you want to have some financial backing to fall on, as expenses and financial responsibilities can change drastically as a result of divorce.

Since the possibility of divorce exists, a prenup is a wise move because financial distribution is one of the most complicated and dragged out matters in a divorce, and having it figured out beforehand would be preferred. Ultimately, the prenuptial marriage agreement will spell out how the financial aspects of the marriage are to be dealt with, without the need for discourse in the courtroom, and removes all ambiguity.

The Top 3 Things To Do To Protect Your Assets Before Divorce

Friday, October 30th, 2015

1. Contact and work with a Certified Financial Divorce Practitioner: Some people think that when drafting a settlement offer for your upcoming divorce, that it is okay to consult their accountants or financial planner. The problem here is that, more times than not, these people are not well versed in divorce settlements. Therefore, you should consult a Certified Financial Divorce Practitioner, as they are certified in the financial aspects of divorce. They will explain to you the financial effects that accompany divorce settlements.

2. Open your own bank account: If you have your own, personal bank account that has existed since before your marriage, make sure to keep that money away from any joint bank accounts you may have with your soon-to-be ex-spouse. So long as this money is kept separate from any other money you have combined with your partner in a joint account, you are, by all means, the legal owner of said money when the divorce is all said and done. However, if you don’t have a bank account other than your joint bank account, it is imperative that you open your own account, and start putting money it. Unlike with a joint account, your partner cannot take out money for himself or herself if it is in an account under your name. And finally, if you do have a joint account, it is wise that you contact whatever bank account is in, and limit any possible access to this account. If you explain to them the situation, that you are currently in a divorce process, they can limit overall access to this account, and in doing so, it will prevent your spouse from draining the account for themselves.

3. Establish a date of separation: When you establish a formal date of separation, your partner cannot claim part of your income, nor any new asset you acquire with this income, as theirs. A good indicator of separation is if you move out of the residence you live in with your spouse. Although it can be hard to leave your home, it is important to establish a date of separation as soon as possible. This will show that you and your partner are no longer in a working relationship, which may help protect any income you earn from this point on.