As you prepare for divorce, you’re likely to have questions and concerns about the impact it will have on your financial life. This includes everything from the assets you retain to the debts you have to take on.
No two people face the exact same circumstances when divorcing, but there are some tips everyone can follow to protect their assets during this challenging time. Here are three things to keep in mind:
- Assets can fit into two categories: Generally speaking, an asset is either categorized as individual or marital. If you brought an asset into your marriage and still own it 100%, it’s not subject to property division. A motor vehicle is a good example. Conversely, jointly owned assets, such as bank accounts and the family home, are subject to division.
- Create a property division checklist: Once you know which assets are individual and which are marital, create a checklist that groups them accordingly. This can include groups such as real estate, personal property, financial assets and business assets. Every asset you own, either separately or together, will fit into one of these groups.
- Watch for hidden assets: It’s not out of the question that your soon-to-be ex-spouse will attempt to hide assets from you and the court. By doing so, they hope that they’re not subject to division. You must be aware of this, if at all possible, and take the appropriate action. Just the same, don’t go down this path yourself. Any asset, regardless of the value, should be part of the divorce process.
When you take these steps, you’re in better position to protect your assets in divorce as to add efficiency to the process.
As you get down to business during your divorce, take every step possible to protect your legal rights and obtain as many assets as you can. It’s the decisions you make during your divorce that’ll affect your finances down the road.
If you have any reason to believe that your soon to be ex-spouse is partaking in shady business, such as hiding assets, do your part in bringing it to light as to protect your rights.