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Divorce and the protection of finances

On Behalf of | Mar 7, 2018 | Divorce

Before tying the knot, marriage-bound Arizona residents should think about protecting their assets. While it may seem very cynical to make plans for what could happen during a divorce, having the proper safeguards in place is often a wise move.

In order to protect what they own, spouses should make sure that they maintain separate financial accounts. Many couples may choose to have joint accounts to conveniently pay for certain expenses. However, it may be prudent to create a new account for joint financial obligations instead of adding a spouse’s name to an existing account. For an individual who has already combined finances with their spouse’s, they should open an account in their name only if they receive an inheritance or gift. Separate accounts should also be used for expenses for any assets that are in just one party’s name.

Completing a postnuptial agreement is also advisable for married people who want to protect their finances in the event of divorce. Postnups, which are created after a couple gets married, are particularly relevant for spouses who want to divide their assets in a manner that contradict the laws of the state in which they reside. When specifying who owns which assets, it’s important to have a written agreement rather than a verbal promise or perceived understanding.

A divorce attorney may work to ensure that a client’s rights and interest are protected in the pursuit of favorable property division terms in a divorce settlement. Litigation may be used to enforce the terms of a prenuptial or postnuptial agreement and to ensure that marital property is divided fairly.