You take a deep breath and say the words you never thought you’d ever have to say: “I’m getting divorced.” Depending on the circumstances of your separation, it can repair some financial damage, but it will still leave lasting effects that you need to prepare for. Some married couples only talk about their finances when making a decision about a divorce, and this can ruin what would have been a fair agreement.
To make sure you come out ahead in the divorce proceedings, you need to protect your assets. It is possible to get what you’re entitled to while keeping your finances safe.
Here’s how to protect your assets in a divorce.
Knowing Your Assets and Debts
Divorced couples need to understand their assets and debts to help protect these items during their split. Whenever possible, spouses should make a list of their shared and separate assets and debts.
Being aware of current balances in all accounts is important to properly identify marital assets. Keeping records of any gifts or inheritances, premarital assets, and post-marital purchases is also essential. Properties should be properly titled for clarification of joint versus separate ownership.
Once all assets have been identified, any necessary changes should be made to protect them, such as transferring joint accounts to individual ownership. Additionally, spouses should be sure to create primary and secondary beneficiaries on any accounts, insurance policies, or wills.
Transferring Assets and Liabilities
When looking to protect your assets in getting a divorce, transfer or assign any assets or liabilities to another party before the divorce proceedings. Before transferring assets or liabilities, it is important to first consult financial advisors or divorce lawyers who specializes in divorce and finances.
Additionally, create a paper trail to document any assets that were transferred or assigned during the divorce. Make sure that the paper trail is in chronological order and all transfers are properly documented with the appropriate date and signatures.
It is always best to review all financial documents with a financial advisor or lawyer prior to signing anything. When transferring assets or liabilities, make sure to give each spouse a fair agreement that benefits both parties.
Lastly, make sure that any assets that are transferred are titled in the other spouse’s name and all liens are removed from the transferred asset. This will ensure that there are no surprises or issues during the divorce proceedings.
Understanding the State’s Division of Assets
In order to protect your assets in a divorce, it is important to understand the division of assets laws in your state of residence. Every state has different laws on how assets are divided in a divorce process. It is advised to speak to a qualified lawyer to understand the specifics of how assets will be divided.
Additionally, create a list of assets that you believe you own as this will help you in the negotiation process. It also helps to know the value of those assets and provide evidence of the values, like appraisals, bills or receipts.
In many states, assets acquired after the marriage are presumed to be marital assets, so it is important to be knowledgeable and proactive to protect your assets. Additionally, try to keep the assets and funds separate: have a credit card in each person’s name with clearly delineated division of assets such as joint accounts and individual accounts.
Securing Valuables and Assets
In a divorce, it is important to protect personal and shared assets. Securing valuables and assets starts with being informed about shared items and possessions. If possible, couples should start the process by agreeing on who will be responsible for what.
Getting a detailed list of items and photographs of expensive items is also beneficial. Banking and tax records should also be secured properly. It is important to keep these items in a safe place. In addition, accounts should be split to ensure both parties have access to their funds.
An attorney or financial advisor can be of great help when it comes to securing valuables and assets in a divorce. They can provide guidance on creating separate divisions of assets and advise on how to navigate the process. The most important factor for protecting assets is making sure that appropriate legal documents are filed correctly and in a timely manner.
Utilizing Mediation to Negotiate Assets
Mediation is one of the best ways to protect your assets in a divorce. Through mediation, you and your spouse can come to a mutually agreed-upon equitable distribution of the assets. By working together, each party can present their financial situation and ensure that their interests and future financial security are protected.
It is also important to secure an experienced mediator who can act as a neutral third party and ensure a balanced settlement. Mediation allows both parties to discuss all aspects of the settlement in an open and honest manner. Additionally, any agreements made in mediation can be legally binding and enforced, giving you and your spouse peace of mind.
Through mediation, you can protect your assets, come to an agreement that is fair to both parties and move on with your life, free from financial and emotional stress.
Review Property Division Agreements Carefully
When going through a divorce, it is vitally important to review any and all property division agreements carefully. Make sure you understand every element of the agreements. Check to see if you’re entitled to any compensation and that all your assets are being correctly accounted for.
If there are any discrepancies, speak to your lawyer as a property division agreement can be negotiable. If you feel that you are getting a raw deal, you have the right to challenge it Learn the laws regarding equitable division of property in your state.
Additionally, make sure financial documentation is accurately done and up to date. It is important to document all liquid and non-liquid assets in the agreement as the more assets you have, the more you’ll receive in the divorce.
Learn How to Protect Your Assets in a Divorce
Divorces can become expensive and overwhelming. It is important to familiarize yourself with your financial records and contact a financial planner or lawyer if necessary to help you to protect your assets in a divorce.
Don’t wait until it is too late; start planning now for a successful financial future. Schedule an appointment with a financial advisor today and get started.