Divorce can be a challenging and emotional time by itself. The divorce process can be even more emotionally taxing when you know that divorce can leave your assets in jeopardy. As a result, it is crucial to take steps to protect your assets during this period. Whether you are a high net worth individual or have a more modest financial portfolio, you should be aware of the ways in which your assets may be at risk during a divorce.
Every divorce is unique, and the best way to protect your assets will depend on your individual circumstances. However, with the right knowledge and preparation, you can take steps to secure your financial well-being both during and after your divorce process.
3 ways to protect your assets in a divorce
Divorce can be a complicated and emotionally charged process, and one of the most important considerations for many individuals is the protection of their assets. Divorce proceedings such as mediation can place your assets at risk. Here are a few tips for protecting your assets during a divorce:
- Gather important financial documents — Collect all your financial records, including bank statements, tax returns, investment and retirement account statements, and estate planning documents. Doing so will help you understand your financial situation and will also be important for your attorney. During the divorce process, you should not make any significant purchases or transfer any assets without consulting your attorney.
- Open separate bank accounts — If you have not already, open separate bank accounts in your own name so that your assets are clearly separate from your spouse’s assets. You should also be sure to update your estate plan so that your assets are in your name and not your spouse’s.
- Get professional help — If you and your spouse have a history of complicated and shared assets, it is important to seek professional help. A divorce attorney can provide guidance and represent your interests in court. In addition, a CERTIFIED FINANCIAL PLANNER™ professional can advise you on asset protection strategies and help you adjust your financial plan according to your new financial obligations. It is important to be upfront with your attorney and financial advisor about all your assets, including any hidden assets.
Additionally, consider completing a prenuptial agreement before a future marriage. A prenuptial agreement can help protect your assets by clearly outlining how your assets will be divided in the event of a divorce.
Talk to a ProVise CFP® professional about protecting your assets during a divorce
Are you worried about the state of your assets during the divorce process? A financial advisor can help guide you and set your mind at ease. Our CERTIFIED FINANCIAL PLANNER™ professionals at ProVise can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about the security of your assets during a divorce? Contact ProVise today to schedule a complimentary consultation.