Four Ways to Protect Your Assets in Anticipation of Divorce
Disagreements and disputes can occur in even the healthiest and happiest of marriages. However, non stop arguing or feelings of coldness that has been going on for long months or even years could indicate more serious problems. Unfortunately, high divorce rates are a fact of life. If you are experiencing marital difficulties or are currently going through a separation, it may be time to acknowledge the fact that a divorce may be imminent. It may also be time to employ some asset protection strategies to help ensure your future security and financial recovery if your marriage does end.
Protecting Yourself in the Event of a Divorce
Going through a divorce can be devastating emotionally, but it can wreak havoc on your financial security and your assets as well. It is important to be proactive in taking certain steps to protect yourself. Business Insider recommends the following:
- Make a list of all marital property and assets.
This first step in protecting your assets is to identify all marital property you and your spouse possess. Under New York divorce laws, anything earned, acquired, or otherwise accumulated during the course of your marriage is considered marital property and subject to the rules of equitable division. This means that a judge will consider certain factors in your case, such as each partner’s earnings and their contributions during the marriage, in splitting this property in a way that is fair to both involved.
- Get updated financial statements.
In addition to making a list of property and assets, get recent statements concerning any liabilities you and your spouse have, such as a mortgage, car payments, and credit card accounts. Be sure and obtain recent statements showing balances in checking, savings, investment, and retirement accounts as well.
- Re-establish your credit and set up individual accounts.
Most couples have jointly owned bank accounts and lines of credit, which each person has access to. Unfortunately, divorce can get messy and it is not uncommon for one spouse to completely empty a savings account or run up significant amounts of debt. To protect yourself, begin depositing money into an individual account, close any joint credit cards you have, and consider opening an account in your name alone to re-establish your credit.
- Get legal guidance.
There are a variety of complex issues in any divorce case which could impact your financial security, now and in the years to come. Matters concerning children, the potential for child support or alimony payments, and any business interests you have should be discussed with an experienced attorney as soon as possible. In some cases, it may make sense to initiate divorce proceedings yourself, rather than waiting for your spouse to do so.
Contact Us Today for Help
At Cavallo & Cavallo, our primary concern is making sure your rights and best interests are protected. If you are experiencing problems in your marriage, contact our New York asset protection attorneys. Request a confidential consultation in our Bronx or Westchester office to discuss your best course of action and the options available in your situation today.
Resources:
businessinsider.com/how-to-protect-money-divorce-2017-1#5-build-a-team-5
nysenate.gov/legislation/laws/DOM/236
https://www.cavallolawyers.com/new-years-resolutions-to-protect-your-small-business/
