Divorce can lead to the loss of assets. Marital assets are typically divided equally in California divorces. This means that any assets acquired during a marriage, including income, investments, real estate and debt, are divided 50/50 between spouses under the law. This can lead to tension and stress for people who are going through a divorce.
However, people have several options to protect their assets from high-asset divorces. These options can allow couples to plan for divorce if their marriage ever ends. Read below to find out how.
What is a prenuptial agreement?
One way to protect assets from a divorce is by creating a prenuptial agreement. A prenup is a document that is drawn up before marriage that can help determine what assets each spouse would keep should their marriage ever end.
For example, couples can outline what assets they owned prior to marriage that they would continue to own after a divorce. However, couples can also use a prenup to outline what assets that they would keep if acquired during a marriage, such as business interests. Spousal support could also be decided with a prenup.
Is it too late to get a prenup?
To clarify, a prenup is only drawn up before a marriage. However, it is not too late to create a document to protect assets. Couples can get a postnuptial agreement after marriage to protect assets. It can revise a prenup they already have.
With the use of a prenup or postnup, the proceedings for a high-asset divorce can go more smoothly without emotional and financial difficulties. Legal guidance can help spouses explore their asset protection options.