How Do I Protect My Wealth During A Divorce?

Dissolving a marriage is one of the most challenging things a person can go through, especially when it involves children and significant assets. Sometimes, it may seem like it would be better to walk away without anything to avoid the pain of the proceedings surrounding the divorce. But, as the pain becomes less acute, you will want to find yourself financially secure as you build your new life.

10 Ways to Safeguard Your Assets During the Termination of a Marriage

Ideally, everyone leaves the marriage in a place of financial security, but trust and fairness are often broken when a marriage is dissolved. If you are concerned about how your divorce will affect your fiscal standing, you will want to read the following tips to protect the things you have worked hard for to secure your future:

  1. Assess your financial standing: Evaluate your finances to get a firm handle on what’s at stake. Look closely at investment and retirement accounts, property, and real estate to determine what you each own.
  2. Establish separate bank accounts: The risk of one partner withdrawing all of the money in a joint account is valid. Open and honest communication can go a long way in making the divorce more amicable. You can let your partner know you are withdrawing half of the money from the account and opening a separate one. 
  3. Create an emergency fund: This will provide you peace of mind concerning a potential emergency that could leave you needing to access money quickly.
  4. Hire a divorce attorney: A divorce attorney can freeze your assets if you fear your spouse may drain them. They can also monitor your finances, so you take less of a hit during the divorce.
  5. Employ a forensic account: This primarily applies to high net-worth individuals. Suspicions about one partner hiding money can be investigated using forensic accounting.
  6. Properly execute documents: It is crucial that any paperwork is thoroughly filled out and is legally compliant. Mistakes can cost you money. The services of a capable family law attorney can ensure that every minute detail is meticulously addressed.
  7. Change the beneficiary on your life insurance policy: Consider your policy and change the beneficiary if you no longer wish the money to go to your soon-to-be ex-spouse.
  8. Protect yourself from unfair taxes: When dividing assets, sometimes, on paper, it looks fair. But, at tax time, what one partner takes from the marriage is taxed more heavily than what the other partner claims. Your attorney will ensure this does not happen to you.
  9. Do not underestimate child support: It’s hard to foresee what a three-year-old may need in the future, and it is more expensive and difficult to go back to court, so consider extracurricular activities, college, vehicles, and healthcare costs when you estimate what your child may need in support.
  10. Keep a clear head about your house: It is easy to become sentimental about a house, and you may want to keep it. But, really consider if it is a burden or a blessing later on when the mortgage, insurance, and taxes are due, it may be best to downsize.

Securing Your Wealth

The best way to truly protect your wealth during a divorce is to work with skilled divorce attorney. The experienced attorneys at Martin Family Law Group understand how best to fortify your financial status during such a challenging time. Contact us today to discuss how we can help you.