When you decide to marry the love of your life, you don’t even want to consider the idea that you could divorce in the future. Even so, it’s best to protect your assets as if this will happen.
Remember, just because you’re taking steps to protect your assets doesn’t mean you’re planning to divorce your spouse. It simply means you’re doing the responsible thing. Your partner should take similar steps to protect the assets they’re bringing into the marriage.
Here are three steps you should take:
- Create a prenuptial agreement: This benefits you and your partner by outlining the assets you’re bringing into the marriage, thus protecting them against division in the event of a divorce. If you want to create a prenuptial agreement, sit down to hash out the details well in advance of your wedding day.
- Keep separate assets in separate accounts: For example, if you received an inheritance and want to keep the money separate from your joint finances, keep it in a separate account. The second you mix the funds with others or add them to an account with your spouse’s name is the second you lose your rights to it.
- Keep real estate deeds in your name only: Maybe you own a home that your spouse is moving into after you tie the knot. There’s nothing wrong with this, but don’t add them to the property deed. Keep the deed in your name only, as this will protect the property against division if you divorce. When the deed is only in your name, it’s separate property and treated as such by the court.
It’s never easy to take these steps, especially if you have pressure from your spouse. For instance, they may ask you to consolidate your bank accounts, thus putting all the cash you brought into the marriage at risk in a divorce.
Have a serious conversation with your partner about your financial situation and the steps you want to take. While doing so, explain that they can take the same steps. Once you’re on the same page, you’re able to carry out your strategy for protecting your assets as you move into this new phase of your life.