If you have substantial assets, one primary concern you may have is safeguarding your wealth from a California divorce. Whether you are currently married or getting ready to tie the knot, there are actions you can take to protect your wealth and ensure your financial security if divorce ever occurs.
It is important for you to keep sight of your finances during your relationship even if you are not the primary breadwinner or in charge of managing the household expenses. Here are some suggestions on how to protect your finances from divorce.
Know your worth
Track all expenses and purchases that occur before and during your marriage. This may seem like a tedious and burdensome task. However, it can help to mitigate many of the issues and conflicts you might encounter in divorce. Get an appraisal of all significant assets and businesses to ensure you have an accurate picture of their value. Appraisals should happen before the marriage.
Get a prenup
A prenuptial contract is a legally binding agreement that lists a couple’s assets and debts. It also contains information on the distribution of marital assets. It is important for you and your spouse to be truthful when creating your prenup and to seek out legal assistance to ensure its legitimacy.
Maintain separate accounts
Many couples open joint accounts once they get married. There is nothing wrong with having joint accounts. However, before you add your spouse to your accounts, you should consider the possible issues that might occur in divorce, such as establishing proper ownership of the funds in those accounts. Ideally, you and your partner should open a joint account together to use for joint expenses. You should also maintain individual accounts for separately owned assets.
Divorce is a challenging experience that can wreak havoc on your finances if you are not careful. Take time to assess your circumstances and goals and take measures to minimize the impact of divorce on your finances and assets.