Asset Protection
& Divorce Planning
Asset Protection as Part of Divorce Planning
Asset protection is often one of the major concerns that couples have when dissolving their marriage. What will happen to their assets when they get a divorce? Unless you address this issue through divorce planning, you might end up being financially vulnerable. No one wants to struggle with finances due to a lack of vital decision-making during divorce. However, it is a fact that many people end up worse off financially once their divorce is final. Afterward, each spouse has to generate their own income and deal with expenses while trying to maintain an acceptable quality of life for themselves. And in some cases, for their children. Divorce planning can help protect your rights and ensure you receive your fair share of the marital property.
How can you protect your assets when you get a divorce?
Gather information about your Assets
One of the first steps in divorce planning is to make a list of assets and gather financial records. It is wise to collect all the information you can ahead of time. In the event that your spouse might try to hide assets, we will have the records to hand. Your list of assets and records should include the following:
Checking and banking account statements (individual, joint and business accounts)- Retirement accounts (IRAs, 401K, etc.)
- Pension and other retirement compensation packages
- Investment accounts
- Life insurance policy
- Income tax returns (individual and business)
- Credit cards statements
- Trust funds
- Valuable works of art, antiques or other collections of value
- Gifts or inheritances
- Multiple residences: vacation homes, ranches, primary residence
- Other real estate
- Documents proving asset ownership prior to marriage
- Outstanding debts (credit cards, mortgage, loans, etc.)
- Intellectual property and documents related to business ownership
Steps your lawyer may advise as part of divorce planning
After we review your finances and accurately assess property value and ownership, we may advise you to take one or more of the following actions:
- Pay off debts jointly owned by you and your spouse
- Close or limit use of your jointly owned bank and credit card accounts
- To reduce your debt, transfer debt incurred by your spouse
- Open separate accounts or allow access by onlyone spouse to avoid commingling assets
- Handle pending bankruptcies, foreclosures or other legal actions that involve both spouses
- Prepare a postnuptial agreement
Important Aspects of Asset Protection
Prenup and Postnuptial Agreements
If you already created a prenuptial agreement prior to marriage, you probably have guidelines in place that help protect your separate property, a business that you own or other assets you’d acquired prior to the marriage. A prenuptial or postnuptial agreement is a valuable legal tool. A postnuptial agreement bears many similarities to a prenup, and we can help you decide whether it would be in your best interest to create a postnuptial agreement as part of divorce planning.
Retirement Accounts
Retirement accounts typically reflect the length of time spent working at a particular job. In terms of divorce, usually a percentage of the income generated during marriage has gone into a retirement account. Such accounts fall into the category of marital property, subject to property division during divorce. Many couples do not realize this fact. Even though both spouses often work, the difference between monetary amounts in their retirement accounts might be considerable. We can help you evaluate these assets and advocate for a fair division of property.
Find out more about asset protection when planning for divorce
We have access to a network of financial professionals who can valuate assets and advise. We can also suggest legal instruments that will help protect your assets. Our considerable experience helping clients resolve financial and business related divorce issues is to your advantage. Let’s discuss your concerns and devise a strategy that is in your best interest.
Call 940.566.0606 to schedule an appointment.
Reach out to us
DTX Family Law
525 S. Locust Street, Ste. 100
Denton Texas 76201
Phone: 940.566.0606