Marriage can be a wonderful and blissful union. However, some find the bliss turns into disdain over time and divorce may become an option. As a result, you may find you are completely stressed about losing property, owing debtors and protecting your assets and income as a whole. Most importantly most people are worried about losing their separate property during a divorce.
In California, which is a community property state, property acquired during the marriage is generally considered community property and is divided equally during a divorce. However, there are ways to protect separate property—assets or debts that were owned by one spouse before marriage, or acquired during marriage through inheritance, gift, or as a result of personal injury compensation—from being divided in a divorce.
The below top five tips highlight the key steps for protecting separate property during a divorce.
5- Make a list
Make a list of the assets that are owned by both you and your spouse during marriage and assets that were owned by your before marriage. Separately highlight those that are family heirlooms, valuable antiques or have sentimental value. Anything that is of significant value should be appraised.
4- Keep years worth of financial records
This is a necessary and preemptive step for preparing your financial statement that will be submitted by your lawyer. Gather your spouse’s as well if possible so that you have your own set of records to compare against what they submit.
3- Don’t try and hide assets before filing for divorce
Attempting to hide assets can be counterproductive as you are possibly setting yourself up for failure. Utilizing the discovery process allows either party to gather financial information and documents on the other for the purpose of divorce. Information you are trying to withhold for the sake of not losing it, will be problematic in the future, especially if you aren’t forthcoming when put on the stand to testify.
Save yourself the headache and allow full disclosure on your finances. Intentionally hiding assets can cause you to lose everything.
2- Hostile divorce or not- it’s time to completely separate your finances
Outside of opening your own accounts, remove yourself from any credit cards that are not yours. You cannot close account if your divorce is pending without the agreement of your spouse. You will want to begin depositing your check into your separate account and begin sharing all your expenses equally.
1- Hiring the right divorce attorney
The most important step in protecting your property and assets during a divorce is to hire the right attorney. You want to ensure that your lawyer is professional and thoroughly educated on the process of divorce and family law as a whole. Do due diligence to find a lawyer who is experienced with the particularities of divorce and familiar with the court and judges.
Your lawyer will be the one looking out for your best interests and protecting your property, assets and finances from your spouse.
Protecting separate property in a divorce requires proactive steps and diligent documentation. If you have specific questions about protecting assets, it’s best to consult with a legal professional who can tailor advice to your unique situation. Getting a divorce can be a financial disaster, which is why it is best to hire a lawyer who specializes in divorce or family law. They will know how to best protect your assets and guide you through the process with ease.
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