Preparation is your best shot at protecting your assets in a divorce; thinking of your belongings only after a spouse wants to split them could lead to a heated court battle. In Texas, the protection your assets have during a divorce can be set up through prior measures you take and the private accounts you open.
The foresight of divorce
Preparing for a divorce is as simple as being realistic about the challenges of human relationships. Accepting the emotional and financial responsibilities of a divorce start with you seeing its possibility. Regardless of its likelihood, preparation is best done prior to marrying. Your legal and financial advisors shouldn’t encourage you to divorce, but they should prepare you for a split should it happen.
Prenuptial and postnuptial agreements
Processing a divorce will involve accounting for any agreements you had prior to and after marrying. In a prenuptial agreement, you and your spouse agree to the disbursement of assets before tying the knot. This process calls for you to first disclose your assets. In a postnuptial, you come to terms with your spouse after you’ve already married.
An asset-protection trust
Due to the binding agreement of a private trust, your spouse won’t have access to the contents of any trust opened prior to your marriage. Should your spouse initiate a divorce, they cannot count the assets within your trust as part of your community estate. Just be sure not to place community property within your private holdings.
Divorcing someone can be challenging to foresee, but without preparation for its potential, your professional, personal and financial life are exposed to more risk. You need an asset strategy for this reason.