What Are Some General Tips to Protect Your Assets Before You File for Divorce?

Untangling years of sharing your life with your partner is always difficult, overwhelming, and stressful. This is especially true when the division of assets is concerned. Before making many other decisions, you and your spouse should reach a workable solution for the division of assets before you even file for divorce.

Of course, each divorce is unique, but some general tips do apply, such as:

  • Although they may mean well, never take a friend’s advice – Indiana’s laws regarding asset division, the movement of assets before divorce, and other related matters are strict. Therefore, professional legal guidance is mandatory.
  • Collect all pertinent documents – Your well-versed divorce lawyer knows precisely how to protect your assets from divorce, but to do so correctly, they must have all the relevant information, such as bank statements, statements, retirement and investment accounts, credit card accounts, deeds, tax returns, and more.
  • Anticipate some spousal resistance – Even if you have an amicable relationship, you must prepare yourself for conflict over financial issues.
  • Don’t make significant financial changes before you divorce – Generally, you should keep the current economic status quo before and after you file for divorce. However, according to Indiana statutes, some changes, if made in haste, could find you in contempt.

The absolute best course of action is to thoroughly discuss your entire situation with your experienced, empathetic, and knowledgeable divorce lawyer before you file or make significant financial moves.

Is It Wise to Use Trust to Protect My Assets Before I Divorce?

This depends on the type of trust utilized and your unique financial situation; however, it may help.

There are two main types of trusts: irrevocable trusts and revocable trusts. The main difference is whether you can alter the trust after its formation.

If you form a revocable trust, you (as the grantor) can usually make modifications easily. However, if the trust is an irrevocable trust, it cannot commonly be altered unless significant and extenuating circumstances arise.

For example, a revocable trust allows you to alter the names, amounts due, and assets beneficiaries may receive; significant changes can be made for many reasons.

However, a revocable trust will not protect or exclude your assets in an Indiana divorce. Since a revocable trust is revocable, you still maintain control over all the assets, which are considered marital property.

An irrevocable trust may efficiently protect your assets from divorce and some creditors, depending on your specific financial situation. However, you no longer have control over your assets; therefore, they could be legally considered separate from your marital estate.

However, it’s critical to note that if your former spouse is named as a beneficiary in an irrevocable trust, they cannot be removed and will still receive their portion of your assets after your death, whether you’re married or not.

So, simply put, whether a trust is the right way to protect your assets in a divorce solely depends on your financial and relational situation. The only valid and legal way to know if a trust is a good fit is to lay out all the details with your highly experienced divorce lawyer and learn what’s best for your unique situation and goals.

How Does a Prenuptial Agreement Work, and Can It Help Me?

Recent statistics show us that over 55% of all marriages will fail. Of course, most people ignore this statistic and want their marriage to last forever. However, In Indiana, when you file for divorce, in most situations, all your assets and debts are subject to being divided between you and your spouse.

Therefore, it’s always wise to consider a detailed prenuptial agreement to protect yourself and your assets when you’re married. This agreement will effectively and legally preserve each spouse’s separate wealth, which they held before being married.

A prenuptial agreement can also protect the growth of your premarital assets during your marriage. A sound legal example is a retirement account.

When a prenuptial agreement is professionally drafted, certain assets (like retirement accounts, etc.) can be set legally aside. In this case, all your earnings and contributions to the retirement account during your marriage are safe from being claimed by your spouse at the time of your divorce.

Additionally, how you title property or commingle assets, accounts, etc., during your current marriage will determine what assets are in the “marital estate” and thus subject to division by the Indiana court.

Having a valid and professionally prepared prenuptial agreement allows specific assets, etc., to be addressed and excluded, so the court and your spouse have no legal right to split them in any manner.

This is why you should discuss your financial matters with your passionate and knowledgeable divorce lawyer prior to your marriage. By doing so, all pertinent assets and property (and more) can be addressed in the prenuptial agreement and protected against the possibility of a future divorce.

What Are Indiana’s Property Laws and How Will They Affect These Assets?

Indiana laws about property division can sometimes be vague and confusing. That said, there are simply two main factors that come into play. These are which property should be considered and subject to division and how the court will, most likely, divide them up.

For example, and under most instances, Indiana divorce law instructs the court to divide the following property among the spouses when:

  • The property in question was bought by either spouse after marriage but before they divorced.
  • The property was acquired through an effort by both you and your spouse.
  • The property that you and your spouse owned before you were married.

Most couples are surprised to learn that the property they brought into the marriage is also subject to division by the court when they divorce.

Suppose you’re even considering or currently facing divorce. In that case, you must organize your finances, titles to property, financial statements, wage records, tax documents, and more, and thoroughly analyze them with the help of a detail-oriented and knowledgeable divorce lawyer.

Additionally, during your divorce proceedings, your divorce lawyer will demand to see financial information from your spouse so that you can understand the total size of your marital estate and rationally decide what your portion should be.

I Plan On Divorcing and Concerned About My Assets; How Should I Proceed?

First, you should know that the Indiana divorce courts encourage amicable splits through well-thought-out settlements. Therefore, negotiating a sound prenuptial agreement ahead of time can keep you out of a costly and time-consuming trial.

However, you must note that the court can refuse to accept any agreement that doesn’t appear fair or voluntary.

Indiana’s marital property laws fully support premarital or divorce agreements to avoid conflict and have an agreed-upon plan to allocate property in a divorce.

The well-versed and compassionate divorce lawyers at the Law Office of Deidra Haynes are experienced and knowledgeable in all areas of Indiana’s family and divorce law. They have helped myriad clients draft prenuptial and divorce agreements that help guide them through the stress-laden process of divorcing in Indiana.

They’re familiar with their client’s rights and will work tirelessly to uphold them, especially those of the father, who, at times, may be subordinated.

Call them today at 317-785-1832, and they will analyze your case and immediately work to start you on the best legal path possible.