In this day and age of the do-it-yourself divorce, some couples are finding it relatively easy to split from their mate without much hassle. Although the divorce laws are different throughout the nation, each state requires assets and property to be divided equally down the middle or in an equitable fashion, which means what is fair to each individual. If they are unable to agree on settlement terms, the court will make the decision for them.
How to Protect Your Assets During Divorce
If you believe that a marital split may soon be on the horizon, you should commence a divorce asset protection scheme so that you don’t end up losing everything that you’ve worked for. Hiding property and assets is certainly against the law, but there are ways to protect your financial future. Let’s first take a look at how assets are broken down:
| Marital Property | Individual Property |
| All property purchased during the marriage | Property owned prior to the marriage |
| Both parties income earned during the marriage | Any assets received through an inheritance or gift |
| Personal property bought while married | Assets owned by either party prior to marriage |
When a couple gets married, they often combine certain individual property with their marital property. This is referred to as a “co-mingling” of the assets, which means that they can no longer be considered separate property of the individual who first owned them. They become community property and can be divided equally during the divorce.
Couples often end up fighting over artwork, jewelry, vehicles and other high-priced items. It may be wise to hire an appraiser who can document the actual value of each item so that a fair division of assets can be accomplished.
You may want to set up individual trust accounts for children from a previous marriage to make sure that they receive their inheritance directly, rather than waiting to go through probate after your death.
The Benefits of a Prenuptial Agreement
When one party has a vaster amount of wealth to protect, they may want to have their bride or groom to be sign a pre-nuptial agreement before the marriage. A prenuptial agreement can include some of the following:
- How property and assets will be divided
- An itemization of all assets that are considered to be either community or separate property
- How the financial future of the children will be handled; i.e. any inheritances or trusts set up
- Who is responsible for any debts incurred prior to the marriage
- How the property will be divided in the event of the death or either spouse
- What the financial responsibilities are of each party while they are married
- How any disputed will be resolved; mediation, collaboration or litigation
- Any specific length of marriage required
This type of agreement is generally prohibited from specifying any type of spousal support or alimony to be paid to the ex-spouse. Each party should be represented by their own legal counsel before signing the contract. The validity of the contract will depend upon meeting the legal requirements set forth in the state it was entered into.
Legal Help From an Arizona Divorce Lawyer
Most people don’t enter into a marriage thinking about how and when they will get divorced. The reality is that nearly half of all marriages end up failing. People often grow apart or a traumatic event may be the cause of the breakdown in communication. If you feel that your marriage may soon be at an end, it’s best to consult with an experienced family law attorney for advice. Not only is it important to protect your assets, it may be far more important to make sure that you don’t lose custody of your children during the process.
