When you decide that the only way forward for your relationship is a divorce, there are many things you may forget to consider at the start. It is important to effectively protect your money in your divorce. It is not a secret that divorce can be frightfully expensive, especially if you haven’t taken any measures to protect yourself. While no one wants their marriage to end in divorce, a Lincoln divorce lawyer can provide you with viable options to protect your finances.
Protecting Your Money in a Divorce
The financial impact of a divorce cannot be overstated. Divorce isn’t just breaking up with your spouse. It is the total untangling of your lives together. Everything from dividing ownership of the various assets to working out child custody and ownership of the family pet has to be taken into heavy consideration. One of the most important aspects to consider is how to divide your finances. If you have joint finances, separating them can prove difficult.
It may be left to the court to divide them through equitable distribution. When your assets are divided equitably, it means that each spouse will receive what the court deems fair, as opposed to an equal split down the middle. To avoid a substantial loss of your finances in a divorce, here are some steps you may want to take:
- Prenuptial Agreement: Having a prenuptial agreement in place prior to marriage can save you a lot of strife if you ever end up getting a divorce. A prenuptial agreement, or prenup, is a legally binding document that protects your premarital assets and provides detailed stipulations for what your spouse will receive in the event of a divorce. There are often clauses regarding infidelity and other forms of betrayal.
Many partners may find prenups divisive, as they can sometimes be seen as a symbol of mistrust. The argument is often made that you may only be talking about a prenup because you are already thinking about divorce. It is important not to be guilted or manipulated into dropping the prenup, especially if you have substantial assets that you feel the need to protect. - Know Your Balance: Unfortunately, many people are not fully aware of how much money they actually have. When you consider your bank accounts, investments, 40l(k), retirement accounts, and the value of various assets, you may have a lot more to lose than you originally thought. It is important to add up the total value of what you stand to lose in a divorce so you know exactly what you are fighting for.
- Never Hide Money: If you believe your divorce will be contested, you may feel the urge to start hiding money from your spouse. This is not a recommended strategy and could result in only escalating contention. The judge presiding over your case may view your attempt at hiding money as a total loss of credibility, and you will exhaust any goodwill you may have with them.
That’s not to say you shouldn’t take steps to protect your assets. You should just do it the right way. - Get Separate Accounts: If you have not already established your own checking and savings account that’s separate from your spouse’s, do it as soon as you can. If your money is pooled in a joint bank account, you should speak to your spouse about splitting it into separate accounts. You may be afraid that your spouse could close the account and take off with the money, which does happen. Be transparent about your fears.
FAQs
Q: Why Shouldn’t I Hide My Money in a Divorce?
A: The main reason you shouldn’t hide your money in a divorce is that it can be considered an act of fraud. When you initiate the divorce process, you are supposed to be totally transparent with your assets, your debts, and your finances. The judge presiding over your case will rule accordingly in regard to dividing property. If it is discovered that you hid money from the court, you could face substantial penalties and lose big in the divorce.
Q: How Can a Family Law Attorney Help Me Protect My Money?
A: There are many ways that a family law attorney can help you protect your money in a divorce. An attorney can help you develop a strong financial plan, work on separating your debt, take inventory of all your assets, and help make sure that the marital property is distributed fairly and you are not taken advantage of in the divorce. Ultimately, there are many steps you should take to protect your own finances.
Q: How Do I Avoid Losing Big in My Divorce?
A: Every divorce case is different. People who seek to get divorced often do so because of reasons very personal to them. Depending on what led to the divorce, it may be difficult for you to avoid losing a substantial amount of your assets. Still, there are steps you can take to try and protect yourself, such as consulting with a lawyer to know all your options and prioritizing open communication with your spouse if possible.
Q: What Is the Number One Cause of Divorce in Nebraska?
A: There are multiple reasons people get divorced in Nebraska. One of the most common reasons is infidelity. Infidelity causes a great deal of damage, pain, and betrayal in a marriage. It can be very difficult to recover from finding out your spouse was unfaithful, as trust is almost impossible to regain once it is broken. Many times, the only way forward for both spouses is to divorce.
Reach Out to a Divorce Lawyer for More Information
Realizing you are going to get divorced can be a lot to handle on your own, especially if you are worried about losing your money in the process. An experienced divorce lawyer can help you figure out a plan for preserving as much of your money as you possibly can. The legal team at Stange Law Firm can provide you with much-needed legal assistance. Contact us to speak with a team member about a consultation.
