How to Protect Your Assets from Divorce
During a divorce or partnership dissolution, dividing assets becomes complicated, especially when businesses are involved. However, some practical steps can be taken to protect assets.
Identifying matrimonial and non-matrimonial assets is essential. When considering divorce and business assets, accurately valuing the business is necessary. The courts often allow the business to remain with the founder, however, the business assets’ division depends on other high-value assets that may be utilized to offset a spouse’s entitlement.
Protecting assets from divorce can be achieved through pre and postnuptial agreements, trusts, and loans. A prenup outlines how all assets will be divided if the relationship ends. While not legally binding, it is often used as a reliable guide by the courts if it satisfies certain criteria. Similarly, a postnuptial agreement agreed upon during the marriage shares the same characteristics and can protect premarital assets.
To avoid future claims of the lending being gifted and other disputes, any loans should have detailed agreements with both parties signing.
It’s important to distinguish matrimonial from non-matrimonial assets when setting up trusts to ensure they offer genuine protection. For guidance and to achieve the best possible result it may be necessary to have legal representation, and you may also need tax experts, forensic accountants, and mediators.
Thursfields Solicitors provides comprehensive services to protect your matrimonial assets during divorce, offering lasting solutions to financial arrangements, child arrangements, and more. Thursfields can also provide pre and post-nuptial agreements, and trust advice, to help protect assets. To find out more information, click here.