How to Protect Your Assets in a Divorce
Wednesday, October 7, 2020, 6:00 AM | Leave Comment
Next to the battle for the custody of children, sharing of assets is one of the major causes of conflict during a divorce.
Both sides try to make sure they’re not cheated and end up spending hefty fees on attorneys.
To protect yourself and your assets in a divorce, you need to be proactive.
Here are a couple of steps you could take to protect yourself and your assets.
This advice will help you, but it’s always wise to ask professionals for help.
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Document your assets
Find out what’s yours.
Everything you bought before marriage is yours alone. Document it. Get everything down in writing, with proof that those assets are yours and in your name.
The court will find it more impressive, and it’d be easier to sort out what’s on the table to share between you and your spouse.
Whatever it is you bought, keep documents of it. If it doesn’t have documentation, take a picture.
Most times, the court cares more about documents and pictures of your assets than about pictures of your spouse coming out of a hotel with someone else.
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Choose what you need
Before getting to the settlement table, attorneys advise that you know what assets you’d like to have and which would be shared.
It makes dividing the properties quicker. Plus, if you know what you want beforehand, you don’t get stuck with liabilities.
You can also pick the things that have sentimental value to you and make sure you get to keep them.
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Use land trust for real estate
If you have real estate assets you don’t want to lose, putting them in a land trust is the best thing to do.
A land trust protects your privacy and ensures your name does not appear on public records as the owner of the said property.
It’s a legal practice and is mostly used by creditors who don’t want their assets taken. It also offers protection to your assets when going through a divorce.
I’ll stress again that it’s legal, and you don’t have to bother about complications with the court.
After you’re happily divorced, you may want to buy a new apartment. Before doing it, read about Stamp Duty Land Tax to avoid any unpleasant surprises.
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Keep liquid assets available
This is especially for those who have joint accounts. Open a separate account and transfer some cash there to help you get by during the divorce period. It’s advisable because getting funds during the divorce period will prove very problematic.
Closing all joint accounts is also excellent practice, as it makes it more difficult for your spouse to track your movements.
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Get rid of alimony
To best protect yourself, make sure whatever settlement you’re getting is not filed as alimony in any legal document.
Alimony is taxable income and if it is not filed as alimony, you don’t have to worry about it during tax time.
It’s essential to pay attention to this, as it can be easily slipped in.
Getting a divorce could be messy. But, if you’re well prepared, it’s easier to get through it and protect your assets at the same time.
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