How to protect your assets during a divorce? Protecting assets through
a divorce can be a complex financial process further complicated by the
emotional devastation. If you are going through a divorce it may be
important to you to determine ahead of time what your assets are and
how you will protect them from your spouse.
The first step will be to hire a lawyer familiar with the laws for
dividing property in your state. Good legal council will prove
invaluable in defending your claims to property and can give you names
of appraisers and accountants to help your case. Your divorce lawyer
will also assist you on how to remove any Powers of Attorney granted to
your spouse for control of your property and finances.
There are several steps you should consider when trying to protect your assets during Divorce:
1. Identify everything that was given to you as a gift or family heirloom.
2. Identify community property.
3. Hire a professional appraiser.
4. Figure out how you will split retirement and physical assets.
IDENTIFY GIFTS AND FAMILY HEIRLOOM TO PROTECT ASSETS DURING DIVORCE
A camera will prove to be your best friend during a divorce. You should
make a list of all items which were given to you before and after the
wedding and take pictures of these items prior to removing them from
the residence. Once you have compiled your list you should remove all
your personal items to a location not easily accessible to your spouse.
Your spouse will be within their rights to claim any items you leave
behind in the residence and do not immediately claim. If you or your
spouse left the residence voluntarily, either of you is entitled to
return at any time and retrieve belongings. If locks have been changed,
except in the case of a court order, you are within your rights to have
a locksmith open the doors. Your next step will be obtaining, if
possible, written proof of who gave you the items and when they were
received.
COMMUNITY PROPERTY ASSETS
Community property of assets refers to the belongings shared by you and
your spouse, such as the furniture, pots and pans, etc. It is important
to take pictures of these belongings as well before you remove the
items you wish to claim as your own. Photographs are especially
valuable if there are expensive items you would like to have but did
not have the ability to move and you feel your spouse may try to take
them. All photographs should be kept in a secure location not readily
accessible by your spouse.
HIRE A PROFESSIONAL, INDEPENDENT APPRAISER FOR DIVORCE ASSET PROTECTION
Division of property during a divorce is determined by the fair market
value of the disputed items to ensure one party is not being favored
over the other during settlement. An appraiser will be necessary to
determine accurate estimates, although you should consult your lawyer
on finding a qualified individual.
Using the same accountant who handled your assets in the past may seem
suspicious and a court may order another appraisal or rule in favor of
your spouse’s accountant. It is critical that an appraisal be
straightforward and unbiased for the protection of assets during
Divorce.
ESTATE PLANNER CONSULTATION TO DIVIDE AND PROTECT ASSETS DURING DIVORCE
When considering how to divide assets prior to divorce settlement, it
is wise to consult a professional estate planner or financial analyst.
For example, if you are thinking about selling your home it may be wise
to do so prior to settlement since you are entitled to deduct up to
$500,000 of the sale from capital gain taxes.
Selling the home after the divorce is final and reduces your benefit to
only half of the sale price. Retirement assets and stocks should also
be discussed. If you and your spouse choose to split the retirement
benefits you must sign a Qualified Domestic-Relations Order (QDRO)
which notifies the pension sponsors how to pay the benefits. Although
you cannot take stocks in your spouse’s name you may be entitled to the
proceeds once they are sold.
EXCEPTIONS TO THE RULE ON DIVORCE ASSET PROTECTION
Some states, such as New York, are known as “equitable distribution"
states. “Equitable" mean “fair" and assets will not be divided right
down the middle based on their fair market value. Division of assets
according to New York Divorce law states that all property obtained
prior to the marriage still belongs to the individual and all property
obtained afterwards will be distributed by the court based on
established guidelines.
The factors a court considers in equitable distribution states for divorce assets are:
1. The difference in income and property from when the marriage began to the date divorce was filed.
2. The age of both individuals and how long they were married.
3. The needs of a parent who has won full custody of children involved
(i.e. will they need the house to properly care for the child?).
4. Any loss of pension or inheritance.
5. What contributions the parties made to acquire the property.
6. Future earning potential of both parties.
7. Tax consequences.
If you are considering divorce it is wise to consult a lawyer as soon
as possible to ensure the protection of your assets and help you
understand your rights as they pertain to individual state law. For
maximum protection Estate Street Partners is available for consultation
during and before a divorce.
Rocco and his team of bonded professional attorneys, CPAs and
accountants help affluent individuals and companies retain control of
their domestic and foreign/offshore assets, protect their assets, build
& preserve their wealth and financially structure their money to
reduce capital gains taxes, estate taxes, inheritance taxes, avoid the
probate process and decrease income taxes.
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Rocco Beatrice, CPA, MST, MBA, Award-winning trust & estate-planning expert
71 Commercial Street #150 Boston, MA 02109 tel: 508.429.0011 fax: 508.429.3034
Click here for more info:
http://www.UltraTrust.com,
http://ultratrust.com/hide-your-assets-now.html
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