May9

How To Protect Your Assets and Interests in a Divorce

protect assets during a divorce

Many people who go through a divorce in Florida come to realize that the financial consequences of divorce can be as challenging as the emotional impact. If you are going through a divorce, one of your top priorities should be protecting your assets. A knowledgeable Florida divorce lawyer at Chiumento Law, PLLC, can talk to you about strategies for protecting assets in a divorce.

Below, we discuss some legal options to protect yourself financially during the dissolution of a marriage. To discuss an asset protection strategy tailored to your specific situation, contact a Palm Coast divorce lawyer at Chiumento Law at (386) 753-3245 or online to schedule a confidential consultation.

How To Protect Your Assets by Signing a Prenuptial Agreement

During the bliss of getting engaged and planning a wedding, you may not want to think about the possibility of your marriage failing. Unfortunately, many do for a variety of reasons.

A well-crafted prenuptial agreement protects the interests of both spouses if a marriage comes to an end. A prenup traditionally addresses divorce’s major financial issues, division of marital assets, and alimony. You should have one in place before you marry, regardless of your income or wealth, which typically increases as you get older.

A prenuptial agreement is a contract. It can be written to suit your needs as long as it does not infringe upon either spouse’s right to an equitable division of marital assets in a divorce or to alimony if they otherwise qualify. The terms of a prenup must be fair. If it is grossly biased in favor of one spouse, the other could challenge it in a divorce and have the prenup voided.

Another tool for protecting assets prior to a divorce is a trust fund. A lawyer can help you establish a trust funded by a specific source of money for the benefit of your children or another beneficiary. Because its assets are owned by the trust fund, and not you, the contents of a trust do not become part of a divorce dispute. A trust would have to be established before divorce proceedings begin. You cannot legally hide, sequester, transfer, or sell assets once either spouse files for divorce.

How To Protect Your Assets During Divorce Proceedings

One of the first steps in most Florida divorces is to prepare an inventory of your financial assets, including documenting your income, bank accounts, retirement accounts, investments, insurance policies, expenses, tax filings, and debts. You must file a Family Law Financial Affidavit with the court. It will be shared with your spouse and their attorney.

This requirement surprises many people. But Florida divorce law requires the court to equitably divide the marital estate. This means the judge will determine what assets were acquired during the marriage and divide them between the spouses in a manner that is fair to each party. An equitable distribution is not necessarily an equal distribution of assets. The court also uses each spouse’s financial affidavit when considering alimony and child support. A child support worksheet also must be filed with the court before any hearing on the issue of child support.

In an amicable divorce, the two spouses may work out an agreement for the division of marital assets, payment of alimony, and payment of child support. The agreement can then be presented to the judge for approval. If it is equitable, the judge will make the terms of the agreement part of the divorce decree.

In a contested divorce, your financial future is at stake. A divorce that is not handled well can be financially ruinous. You need to consult an experienced divorce attorney as soon as you know you are headed for a divorce. Some steps to take to protect yourself financially in a divorce are:

  • Create your financial inventory. Document your ownership of any assets that you had prior to your marriage. You only have to divide assets acquired together during the marriage.
  • Calculate the value of your assets. You can negotiate an equitable split better if you know what everything is worth. If necessary, your attorney should be able to refer you to a finance professional for help.
  • Separate yourself financially. If you have any joint accounts with your spouse, withdraw half of the contents and have your name removed from the account. Do not take more than half. If you have joint credit cards, ask to be removed from the accounts if there’s no balance due and apply for one or two credit cards in your name only, then use them to establish your own credit rating.
  • Change beneficiaries. Remove your spouse as a beneficiary from insurance policies, retirement funds, your will, and other transferable accounts. Name your children, another relative or friend, a charity, or a school instead.
  • Review your credit reports. Your spouse can damage your credit standing as long as you are still married. You can’t undo the harm, but you can submit a statement to the court stating that your spouse’s activity was beyond your knowledge or control.
  • Change passwords. Change access to all of your online accounts – not just financial accounts. Don’t discuss your divorce or your spouse on social media.

How To Protect Your Interests After Divorce

After a divorce, your household income may be cut in half or more. You’ll need to plan for your future financial security and well-being by setting up a budget. Take a hard look at your expenses and your income – including alimony and/or child support payments – and see whether your income and expenses balance. If not, identify some expenses you can reduce.

If you kept the family home in your divorce, don’t let an emotional attachment keep you from acting if money is tight. Downsizing may be in your financial interest.

If your ex-spouse was required to pay alimony or child support in your divorce, they should have life and disability insurance. If this was not part of your divorce order, you might suggest it to your ex if you are on good terms or ask your attorney about having your divorce order amended to require this protection.

Contact an Experienced Divorce Attorney in Palm Coast, Florida

If you’re considering filing for divorce or have received divorce papers, contact a compassionate and experienced Florida divorce lawyer. A knowledgeable attorney from Chiumento Law, PLLC  in Palm Coast and Ormond Beach, FL, can guide you through this process and help you protect your financial future.

To set up your confidential consultation, call us today at (386) 753-3293 or contact us online.

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