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Is it possible to protect your assets from a divorce?

When you are thinking about marriage, it is only natural to think about divorce as well. Some people take steps to protect their assets before they get married by creating prenuptial agreements. Other couples create postnuptial agreements after they get married in order to protect their interests. Others, however, are creating financial trusts.

If you are considering divorce, you may be worried about what will happen to the assets you have spent years building. Will the financial trust you created be enough to protect your property? Is there any sure way you can protect the wealth you have worked so hard to accumulate? A divorce attorney in the North Little Rock area can help you take the necessary steps to protect your assets. Read further to find out more about how a trust is affected by divorce.

Before marriage equals separate property

If you set up a Domestic or Foreign Asset Protection Trust before you got married, your property may be protected if you divorce. Essentially, the trust and not you own the property and any gains in value it has realized. In some cases, a spouse has no claim to the property that the trust owns.

Terms are important

The drafting of the terms of the trust are extremely important. If you are facing divorce, the terms of the trust may determine if the assets it owns are safe from your future ex-husband. If the wording is too ambiguous, you may run into some difficulties when it comes time to examine property division.

Effects on spousal support

In some states, the benefits that one spouse receives as a beneficiary of the trust may not be part of a spousal support calculation. However, this is a very complicated issue. Some courts have ruled and reversed on this matter in other parts of the country. Therefore, if this issue comes up during your divorce, you should prepare for a possible court battle.

Post-divorce protection

Protecting your assets after a divorce is just as important as protecting them before the divorce. A trust can help you safeguard your property if the creditors start calling. For example, if your ex stops making mortgage payments on property you purchased together, that still bears your name on the loan, this could result in creditors knocking on your door. The trust will protect your property from their claims.

If you are considering divorce, you may be worried about how your property or business will be affected. If you took precautions either before or during your marriage, you may be able to protect your holdings.

Source: Nov. 30, -0001

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