How Do I Protect My Assets During a Divorce?

Deciding to get divorced is one of the hardest decisions you will ever have to make. You and your spouse built a life together. Made memories. Started a family. Shared both joy and pain. 

But you also joined your incomes together, acquiring property, investments, and other valuable assets. If you are worried about what will happen to your assets during a divorce, you are not alone.

Millions of individuals filing for divorce are wondering the exact same thing. While it is illegal, or at least unethical, to try to hide assets from your spouse during a divorce, there are steps you can take to at least protect those assets during the divorce process.

We will discuss a few of these steps in this blog post.

How is marital property divided in new york?

New York has an equitable distribution law. This simply means that material property is divided in a manner that is considered to be fair by the court. This does not mean, however, that property will be divided equally between spouses. In determining how property will be divided in a divorce, the court will consider factors such as each spouse’s age, earning potential, and their health.

What is marital property?

Marital property is subject to New York’s equitable distribution laws. Marital property is property that is acquired by either spouse during a marriage. It does not matter if the property is jointly held by both spouses, or if the property is in one spouse’s name. Common examples of marital property include a family home, cars, retirement accounts, pets, and even business interests.

Separate property, conversely, is property that was acquired by one spouse before the marriage, after a petition for divorce has been filed, or received as a gift or inheritance. Separate property is not divided under divorce proceedings.

How do prenuptial and postnuptial agreements work?

A prenuptial agreement is a contract that exists between spouses that lists each spouse’s premarital assets and specifies who is entitled to receive what in the event of a divorce. Essentially, prenups allow spouses to determine how property will be divided, regardless of New York’s equitable distribution law.

New York state law also recognizes postnuptial agreements. For example, if you and your spouse did not execute a prenuptial agreement before the marriage, a postnuptial agreement offers the same protections of a prenuptial agreement. The only difference between the two documents is when they are signed.

With both a prenuptial agreement and postnuptial agreement, you and your spouse can work together to determine how your marital property will be divided during the divorce, helping you protect the assets and property that matter the most to you.

What should i do next?

If you do not have a prenuptial or postnuptial agreement and are concerned about your rights to marital property, there are several steps you should take to protect those assets.

1. First, you should make a list of all marital and separate property to clarify what assets belong to you and what belongs to your spouse.
2. Second, you should download and print copies of your bank account statements, tax returns, brokerage statements, and other financial documents. These documents can be used as evidence in your divorce case.
3. Third, you should secure some liquid assets. For example, you may want to set up a separate bank account and make sure you have enough assets to cover bills and other living expenses. Note, the goal is not to clear out a joint bank account and leave your spouse with no cash.
4. Fourth, make a list of the assets that you need and those that you want. This will help you prioritize which assets you want to receive after the divorce.
5. Lastly, you should hire a New York family law attorney. An attorney will look at your marital and separate property, your financial statements, and your list of wants and needs to develop a plan to project the assets most important to you.
   

Hiring a new york divorce attorney

If you have questions about how your property will be divided during a divorce, we encourage you to contact our office to schedule a consultation. We will look at the specific facts of your case and help you determine the best way to protect your assets during a divorce. You can call us today, or complete the form on our contact page to start the conversation.