When you have spent years building your savings, buying property or growing a business, the thought of dividing those assets during a divorce can be difficult. You may wonder what you can do to protect what you have worked for while the divorce is pending. Here are three steps you can take.
Keep separate property separate
Keeping separate property separate from marital assets can make it easier to show that it belongs to you. For example, if you received an inheritance, placing those funds into a joint account can make it harder to distinguish them from money earned during the marriage.
This also applies to property you owned before getting married. Keep documents that show when you acquired the property and how you paid for it, particularly if you have made changes to the property or used marital funds toward it.
Document your assets and debts
Financial records can help establish the ownership and value of your property when you and your spouse divide your assets. Gather bank and investment statements, property records, retirement account statements, business records, loan documents and other records showing what you own and owe.
If you own a business or have significant investments, the records may be especially important because their value may not be as straightforward as the balance in a bank account.
Do not transfer or give away property
Do not sell, give away, hide or transfer marital property simply because you want to keep it out of the divorce. Moving an asset does not necessarily change whether it is subject to division, and the court may consider the transfer when deciding how to divide the property.
If you are thinking about selling or transferring a significant asset, understand how that decision could affect the divorce before you make the change.
Know what you are protecting
Protecting your assets does not mean trying to keep everything for yourself. It means understanding what you own, keeping separate property identifiable and avoiding decisions that could make the property division more complicated.
If you have questions about a particular asset or are considering a major financial decision during your divorce, getting legal guidance before you act can help you understand your options and avoid an outcome you did not intend.