Divorce is not an easy process, especially when it comes to dividing assets. You need to hire a trusted lawyer like one of these family law solicitors in Sydney. Many things need to be done before and after the divorce is final. But one thing you can do to protect your assets and make sure they are divided fairly during divorce proceedings is to protect yourself from litigation with a prenuptial agreement or postnuptial agreement. A prenup can help both parties discuss and decide what will happen with their assets as well as any debts before marriage so that there are no surprises later on.
Tip No. 1: understand your assets.
Before you can protect your assets in a divorce, it is important to understand what they are. The first step is to create a list of all your assets including real estate, vehicles, investments, and businesses. In addition to the financial side of things be sure that you have included all debts and liabilities (e.g., credit card balances). If there is anything else of value such as artwork or jewelry make sure it is also included on the list.
Once you have completed the list review it with an attorney who will analyze your situation and help you determine which assets need protection through various methods such as prenuptial agreements or trusts (see Tip No 2).
Tip No. 2: Separate your assets from your business assets.
Separate your assets from your business assets. While it may be tempting to write off a certain property as part of the business, this could cost you dearly. If you own a restaurant, for example, and use some of the space in it rent-free for storage or as an apartment for yourself and your family members, that property should not be included in any settlement unless there is a specific agreement stating otherwise. Likewise, if you own a car or boat but use them both for work purposes and personal trips with friends and family members, they will need to be separated into two categories: one with all vehicles used strictly for business purposes (such as delivery trucks) and another where all vehicles are used equally by both spouses (like cars).
Tip No. 3: Understand the difference between marital and non-marital assets.
Marital assets are those acquired during your marriage, while non-marital assets are those you obtained before getting married (or after you were married). The courts will divide each of these types of property differently. For example, if one spouse owns a company that was started before the marriage, but has been earning profits during it, then this company would be considered a non-marital asset and not subject to division by the court.
Tip No. 4: Use a prenuptial agreement or postnuptial agreement.
A prenuptial agreement is a contract between two people before they get married. A postnuptial agreement is a contract between two people who are already married. Both agreements can be used to protect your assets in a divorce.
With these contracts, you can stipulate how you would like to divide up your property and finances if the marriage ends in divorce or death. You can also specify that one partner’s assets remain separate and not be subject to division at all during the marriage or after it ends, which may be particularly important if one person has substantially more wealth than another or if there are special circumstances surrounding their finances such as alimony payments for example (this topic is discussed further below).
Tip No. 5: Be open and transparent with your spouse about your assets and income.
There are two ways to be open and transparent. You can either be very honest about your assets and income, or you can keep it all a huge secret.
The first option is the best way to go for many reasons. It helps prevent problems in the relationship, especially if you’re planning on having children with your spouse later on down the road. If they know what they’re getting into when considering starting a family with you, then it’s less likely that they’ll have any surprises come out of nowhere later on down the road that could cause major problems in your marriage. Keeping secrets from each other can also lead to mistrust between spouses which leads people to feel more distant from one another emotionally than if they were being open and honest with each other at all times.
If both spouses are open about their assets during divorce proceedings then there won’t be any hidden surprises when it comes time for splitting up everything equally between both spouses after everything has been settled out between them legally speaking which makes
Tip No. 6: Communicate with a CPA or financial planner as needed
Throughout the divorce process, you need to communicate with a CPA or financial planner or a conveyancer like this Conveyancing Marino as needed to ensure compliance with tax laws and other requirements related to asset division. Disclosures on joint tax returns will be required by both parties. Separate state tax returns will be filed by each party as well. The completion of sworn financial declarations is another requirement that should not be missed!
A divorce can be a very stressful time. Consulting a counsellor like this Brisbane couples counselling is recommended. However, if you are proactive and prepared, it doesn’t have to be. Divorce is an important decision and one that should not be taken lightly. You must understand your rights as well as the rights of your spouse before making any decisions about how assets will be divided in divorce proceedings. The more information that each party has access to before making decisions on property division during divorce proceedings (such as prenuptial agreements or postnuptial agreements), the better chance there is for both parties involved in these cases to come out with an outcome they are happy with overall.