Denver Asset Protection Lawyer Protecting Your Assets In A Colorado Divorce
Know how to protect your assets from depletion due to divorce.
Going through a divorce is expensive. The court costs and fees alone can have a significant impact on your finances. However, the division of marital assets can have even more substantially far reaching consequences for you financially. To protect yourself, be aware of what will be included as marital property that a court would divide in the event of divorce. Also, know that there are ways to protect your assets in the event of divorce. At Nicholas Family Law, we are well versed in asset protection and can help shield your finances from the potentially severe impact of divorce.
What is Marital Property and How is it Divided?
In a divorce, the assets of each spouse will be put into one of two categories: marital property and separate property. Marital property generally includes all assets and liability acquired during the marriage. Separate property includes:
- The property acquired either spouse prior to marriage;
- Inheritance received by either spouse before or during marriage;
- Gifts given by third parties to either spouse before or during marriage; and
- Payment for pain and suffering due to a personal injury claim.
Because Colorado is an equitable division state, the assets considered to be marital property will be subject to equitable division. The court will weigh several factors to determine what is fair, or “equitable,” in dividing the marital assets between the spouses.
What Asset Protections Can Be Put in Place?
There are several steps you can take to protect your assets from depletion in the event of divorce. One of the best things you can do is to establish an offshore trust account. Assets put in a trust account can be treated as separate property because, legally speaking, the trust is the owner of the asset, not you personally. This means that a trust that is set up the proper way can help you protect your assets from marital property division.
Offshore accounts are preferable to domestic ones for several different reasons, one of which being that it makes litigation for creditors more complex and expensive. This alone helps encourage quick settlements. Additionally, an offshore account will often afford greater protections than those available under U.S. law.
An offshore trust account can provide you with reliable asset protection that will safeguard your financials in the event of divorce. It can often be used instead of a prenuptial agreement. An offshore trust account is even preferable over a prenuptial agreement as it can be established without the need of approval from anyone else.
Additional asset protections to consider include steps to avoid separate property from becoming marital property. For instance, if you owned property before marriage, avoid putting your spouse’s name on the title. This will put your separate property interest in jeopardy. It is also a good idea to avoid making significant investments in things like property if you are considered getting a divorce. If your marriage has not legally ended yet, the property will almost certainly be considered marital property subject to division.
Protect your assets and financial future by contacting us to put legal tools in place to withstand the impact of divorce.
At Nicholas Family Law, we are here to help our clients protect their financial interests by putting a dependable asset protection plan in place. The sooner you work to secure your assets, the better situated you will be in the event of divorce. Contact us online or call us at (303) 322-0038.