Protecting Assets in the Event of a Divorce or Separation

When you’re married, it’s not fun to think about protecting assets if there’s a divorce.

Let’s face it, discussing protecting assets in such cases is a hard discussion, even in happy times. Whether or not you feel it, love is in the air all the time. And when love strikes two people in the same heady way, marriage often follows. But we folks are fickle and love. When it hits someone anew (who is already married to someone else) divorce can and does frequently follow.

Love Is A Many Splendored Thing Until It’s Not

In the giddy early days of falling in love for the first time and planning a wedding, a family, and a life together, few people think about the possibility of divorce. Well, at least that’s the way it used to be. However, since divorce is now common, planning for that potentiality is becoming more common as well. Protecting assets is especially vital when heading into marriage for the second, third, or umpteenth time. Hey, Elizabeth Taylor was married 8 times!

Whatever your circumstances are going into marriage with pre-marital assets, it’s important to consider the possibility of separation and/or divorce. Protecting assets such as real estate, business investments, and bank accounts involves thorough and thoughtful strategic legal planning and actions that can vary widely depending on your situation.

Consult A Reputable Asset Protection Attorney

You will benefit immensely from scheduling a consultation with an estate and asset protection attorney. In the meantime, you can familiarize yourself with the following key strategies you can employ to safeguard your financial interests:

Prenuptial and postnuptial agreements:

One of the most straightforward ways to protect your assets is through a prenuptial agreement before marriage or a postnuptial agreement if you are already married. These legal documents clearly define what happens to each spouse’s assets in the event of a divorce, including distinctions between what is marital and what is separate property.

Keeping separate accounts:

Maintaining separate bank accounts for any pre-marriage assets or inheritances can help keep them classified as separate property. Commingling funds, such as depositing inheritance money into a joint account, can turn separate property into marital property.

Document everything:

Keep thorough records of asset acquisition dates is critical. This is especially true for items owned before the marriage. Additionally, we need to plan for those received as gifts or inheritances during the marriage. Accurate documentation is critical in disputes over whether assets are marital or separate.

Establish an asset inventory:

Before the tension of divorce proceedings begins, create a comprehensive list of all assets, both joint and separate, if separate assets have been used to purchase property during the marriage and retirement accounts as of the date of marriage. This inventory will be invaluable during divorce negotiations and can help ensure a fair distribution.

Create a trust:

Assets placed in a trust can sometimes be shielded from divorce proceedings, especially if they are inherited or meant for children from a previous relationship. However, the timing of when assets are placed into trust and the type of trust used can affect their protection.

An irrevocable trust creates a legal entity that holds assets outside of your direct control, which can be beneficial in the divorce process. The key to their effectiveness lies in their setup and timing.

An irrevocable trust, established before marriage or without any intent to defraud a spouse, can effectively shield assets since these assets are no longer considered personal property but belong to the trust. This can make them inaccessible for division during divorce settlements unless you place marital assets into the trust.

If you are planning to marry and would like to discuss how to protect assets prior to your marriage, give my office a call at (470) 235-7868.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!