The only way that you can be sure that your assets remain separate and protected during a divorce is if they are spelled out in a prenuptial agreement. We will discuss that later in the article. Some assets can remain separate throughout a divorce, but many times assets become joint property throughout marriage.
What Are Considered Separate Assets?
Some couples come into a marriage with particular circumstances that lead them to want to keep finances separate after marriage. Or they can sign a prenuptial agreement to specify which assets belong to which spouse.
When you enter marriage, these assets are considered separate:
· Gifts addressed to one spouse
· Inheritances
· Property owned going into the marriage
· Lawsuit payouts
· Property agreed to be separate in a marriage settlement agreement
· Assets deemed different in a prenuptial agreement
Separate assets can become joint property throughout the marriage as accounts are combined. For example, if a personal bank account is considered separate property and then combined with your spouse’s savings, it is now joint property. In addition, separate property can become common property by transmutation. Learn how to keep assets separate with the help of a lawyer.
What Is a Prenuptial Agreement?
A prenuptial agreement is a signed document where both parties entering into the marriage determine which assets are separate. No matter what happens during the partnership, the couple still has to adhere to the prenuptial agreement.
A postnuptial agreement can be drawn up during the marriage. This happens when business partners counsel one party to protect a growing business. Or both partners come to the conclusion that they wish they would have signed a prenuptial agreement.
These documents are the best ways to protect your personal assets during a divorce. You will not have to fight over individual assets when you have an agreed-upon record. Instead, use prenuptial and postnuptial agreements to make the divorce process go as smoothly as possible.
Our team at Miles & Hatcher, LLP, can help you keep your assets separate in a marriage. If you are entering marriage as a business owner or have your own property, protect those assets with a prenuptial agreement. Give us a call to learn more: (909) 481-4080.