In certain situations, more money really does equal more problems. In the case of a high asset divorce, a California couple might have to divide money from multiple income streams, complicated investments, businesses and other complex financial assets. However, couples do not have to go into marriage blindly trusting that they will figure out money matters if they end up divorcing. Here are a few ways in which a person can protect his or her finances and interests during divorce.
Signing a prenup before marrying is a fairly obvious first step, but an important one that should not be overlooked. A couple can agree to what a division of marital assets would look like in the event of a divorce, and can also clearly define which property is marital and which is separate. These agreements can also address potential spousal support, particularly if one spouse plans to sacrifice his or her career, associated benefits and peak earning years in order to raise the couple’s children.
Protecting each person’s finances is important, but protecting each party from the other’s debt is also necessary. If each person is bringing debt into a marriage, it is a good idea to address how a couple will address repayment during the marriage. Debt incurred during the course of a marriage is usually joint property and has to be divided up. However, regardless of what a divorce decree may say, the persons whose names are listed on a contract are the ones who a lender will ultimately hold responsible for payment. When a significant amount of money is on the line, it might be appropriate to close joint accounts when possible and to refinance any remaining debts separately.
Divorce is an emotional process, but it is also a legal and financial process. In a high asset divorce, a California couple must be fully aware of their finances and how that money might be affected by the process. This can be a complicated task, though, so an experienced family law attorney might be able to provide more individualized guidance on these matters.
