Protecting your Assets in Divorce without a Prenuptial Agreement
Most California and Orange county divorce cases have assets at the core of the fight between the two spouses. The importance of assets to each of the spouse is paramount since the word assets is used to describe all kinds of properties, personal, commercial, and even business stakes. The reason both spouses are willing to give their all in divorce cases is because they are looking to have the largest amount of assets for themselves.
Increasingly, spouses have started to get into pre-nuptial (premarital) agreements to make sure that their assets are protected from that dreaded day in divorce court. Some spouses however cannot agree on pre-marital agreements to have their assets protected. Here is a list of a few other options that such spouses can use to make sure their assets are protected despite not getting into a pre marital agreement.
Make Sure You Keep Your Funds Separate
This step is fairly simple and will allow you to escape lots of complexities in your divorce case moving ahead. If you have separate funds that belong exclusively to you, and were in your possession before you got married, make sure you keep the money that you had prior to your marriage in an individual account. This will allow it to be easily distinguished from the joint assets.
Separate Your Separate Property
One of the most important things in the assets category tends to be property. Property is often the most valuable of all assets and therefore will be fought over with the most commitment by the spouses. The best way to make sure that you protect the property that you have had in your possession even before the marriage is to keep it separate from your joint property with your spouse. This is trickier than handling separate funds.
If you have separate property that belonged to you even before you got married, the best way to keep it away from your divorce proceedings is to manage all its expenses from money from your pre marriage wealth exclusively. Any use of mutual funds to pay off the properties recurring expenses could drag what should have been your exclusive property into your Orange County divorce proceedings.
Making A Trust To Protect Assets
One of the easiest ways you and your spouses can protect their assets is by creating a trust before marriage. A trust will mean that there is a clear determination by the spouses to keep some parts of the property separate. When a trust ownership is involved in assets cases of divorces, judges will be more willing to accept that the spouses intended to keep certain aspects of the assets separate from the division.
To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”
Gerald A. Maggio is a trained Irvine divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
