5 Ways to Protect Your Assets During Divorce

5 Ways to Protect Your Assets During Divorce

The divorce process is excruciating to any couple. It’s even worse when couples let emotions control the entire process. But this doesn’t need to happen.

Beyond protecting your kid’s welfare, protecting your assets will be an essential focus of your legal strategy. As such, it’s important to start the process of protecting your money and other assets before filing for a divorce.

If you think the divorce will become acrimonious and full of conflicts, or suspect your spouse is hiding money, you’ll need to take some precautions to save your finances during the divorce process.

But first, an important note to stay-at-home spouses. “Your money” is the finances your spouse earns to keep your household afloat. When you agree to stay at home, there’s an implied contract that one’s income would cater for expenses of both spouses.

As such, if you divorce, don’t think because you don’t have your own earnings, you don’t have assets and money to protect. You and your kids will need to be financially secure until you can get gainful employment.

Here are the best ways to protect your money during a divorce.

1. Open Personal Bank Accounts

If you do not have your own bank account, open a savings and checking account. Be sure to inform your spouse about the accounts and breakdown of your deposits. Shedding some light to your spouse about these accounts prevents them from accusing you of hiding marital property.

Once you make the determination to file for a divorce, you’ll need money to cover for court fees, lawyer fees and a place to live. Don’t file for divorce if you don’t have enough savings to last you for at least three months.

2. Close All Joint Credit Accounts

Make payments on all credit accounts you co-own. Whether it’s a home mortgage or a credit card, they must be paid off or put in one spouse’s name.

If you aren’t in a position to settle all the credit accounts, engage your creditors. Let them explain the steps you can take to remove your name from their accounts.

When you file for divorce, all debts must be split during the negotiations. Fewer debts on your end means less stress during the agreements.

But what happens if you’re not working? Encourage your earning partner to remove your name from all accounts. Also, you can negotiate for a debt split by promising to pay a portion of the debt once you start working and earning wages.

If you want to protect your investments in a joint account, withdraw half of the money. Don’t withdraw all of it, the court will order you to pay back.

Also, you can change the authority signature from either spouse to both spouses. Such an account will then require an authorization before any monies in the account can be used.

3. Protect Your Valuables

If you suspect that your spouse will hide or sell your possessions, hide them. But remember, any item bought with marital funds must be assessed during the divorce negotiations.

As such, you’ll need to protect the valuables, but not hide that they’re in your possession. When filing any marital property with the court, be sure to include any asset or item you’ve moved from home.

Do not sell any valuable. If you do, the court will order you to pay back the amount.

4. Steer Clear of New Debt

You’ll need to save as much money as possible during divorce negotiations. Incurring any debt on your credit card isn’t saving money. If your spouse removes your name from a target credit card, don’t use it again.

Use cash from now on till you finalize the divorce. Be wise and save for your future. You don’t want to start a single life with overwhelming debt.

5. Document Everything Before You File

Before filing for divorce, you’ll need evidence of any assets and valuables. As such, take pictures of any marital possessions in your property.

You can also make copies of all bank accounts and their corresponding statements. Keep the documents in a secure and safe place away from home. You don’t want your spouse getting wind of an impending divorce case.

Conclusion

Filing for divorce can be very traumatizing. It may shake your emotions and cause you to make irrational decisions in the entire process. That’s why you need to take proactive measures to protect your interests beforehand. That’s the only way to make better decisions that you won’t regret five or ten years down the line.