Marriage is the best thing that can happen to a couple. However, divorce may be the right thing for some. When seeking a divorce, protecting assets and minimizing financial burden is quite a common question asked in a legal setting. You will not be surprised to hear that about 50% of the country’s marriages have sought a divorce, and the numbers only seem to increase to 75%.
However, while it may not always be bad, knowing if you are getting the rights you deserve and if you aren’t losing personal assets that must be retained is essential. Losses in a disaster divorce are unavoidable, but with the appropriate financial planning with a reliable attorney, you can get the rights and financial aid you deserve. This article will familiarize you with just that!
Here are 4 tips to follow when minimizing your financial losses in a divorce case:
● Consult A Professional & Reliable Divorce Attorney
If this is your first time stuck in a divorce case, there is no reason you shouldn’t be overwhelmed by what is coming ahead of you. Divorce is not only an expensive situation to deal with but is also mentally taxing. With such heights a burden on your shoulder, familiarizing yourself with the legal jargon can be a pain. This is where reliable and professional law firms and attorneys come into play.
A reliable and experienced lawyer, like a Lake Charles divorce attorney, can serve as a professional advocate while handling comprehensive paperwork with their expertise, knowledge, and sound legal advice. They are compassionate and knowledgeable individuals that help you build the case using facts concerning alimony, property division, and child custody. They assist in areas like spousal support and alimony, interim or final, helping you work towards financial independence and income protection.
They can also help you handle complex situations like property divisions, marital residence, legal separation, child custody, and support. Hiring a reliable divorce attorney will ensure you take the right steps against unfairness.
● Using A Premarital Agreement
One way to reduce your financial burden is by engaging in a premarital agreement called by multiple names like a prenuptial agreement, abate-nuptial agreement, premarital contract, etc. Premarital contracts are written and agreed-upon agreements between spouses, specifying the method of property divisions, income, dispositions of personal property, family assets, heirlooms, and more. The complexity comes when family businesses are on the line.
This contract specifies and outlines both spouses’ rules, responsibilities, and authority regarding their children during marriage and after divorce. As these contracts are legally enforceable, it also outlines the extent of financial aid to raising children that stretches beyond just child support. The terms of this contract may differ between areas, but they are all legally enforceable as intended by the parties. Certain characteristics of the contract are:
- It must be in writing and must be signed by the intended parties or spouses
- There must be a reasonable level of disclosure about the spouses’ financial conditions
- Both spouses cannot share the same divorce attorney
- The parties must mutually agree upon the agreement
- The agreement must be carried out during the marriage
An essential tip is to notarize agreements even when it is not a requirement. The reason behind this is to protect your assets during forgery or duress. Attaching financial statements to the agreement will give your spouse firm knowledge about the financial condition. Ensure there is enough time frame between the wedding and the date of the agreement.
● Be Transparent
Clients often forget that they have much more than they think. It is essential to realize all your liquid and non-liquid assets before you jump into any financial planning. To protect, you need to know what assets exist. This tip is essential for both parties; try to know how much money you have during the divorce. This involves bank account balances, savings plans, insurance, credit card bills, and more.
When trust is on the line, it is quite easy to hide money. However, this is a dangerous mistake to make. Hiding money for a future divorce is a bad strategy and can escalate the case in your favor- that means a hike in legal fees and loss of credibility in the future. Preserving income and marital assets is a common scenario for both spouses, but they must not be hidden from anyone.
The best strategy in a divorce case is to be transparent. Having separate bank accounts is a great place to start, but when dealing with joint accounts, the problem can escalate. If you are worried that your spouse will withdraw all the money in the joint account, don’t worry because the judges require a legitimate reason. If you want to withdraw some money, be transparent and notify them.
● Know Your Insurance, Taxes, & Child Support
Child support and alimony payment often necessitate a strong life insurance policy; consider the worst-case scenario of something happening to your other half. Ensure that the person who pays alimony has a disability and life insurance so that they are not in financial ruin and your kids are not in trouble. This is also the right time to consider your insurance and its beneficiaries. You can change the beneficiaries and inform your spouse about it.
When receiving child support, you can add a section for extracurriculars to prevent post-divorce court situations to get those costs covered. As the child grows, the needs and requirements also evolve, so ensure that both the parent’s expenses aren’t static. At any rate, try to avoid a divorce war in court. Prevent this by hiring a professional attorney who knows what they are doing.
Conclusion
It is not news that divorces can be expensive and mentally awful to handle. Premarital agreements are crucial in providing a strong legal ground of substance to be presented during legal proceedings. Everyone in a divorce case has their pockets empty at the end. However, every divorce case is different, and hiring a professional law advisor or attorney is the best thing one can do to protect their assets and minimize losses. Stick to facts and figures, and avoid getting too emotional. Being transparent can also help you score tons in the future.
