Understandably, finances are a top priority when a couple decides to end their marriage. This is especially true when they have children. There is nothing selfish or wrong with wanting to protect one’s assets in a California divorce, and there are several ways to do so.
There are two types of property in a California divorce. Community property typically includes assets acquired during marriage. Separately owned property, on the other hand, usually includes assets that a spouse owned before marriage. Property may be identified as a separate asset by listing it as such in a prenuptial agreement. An inheritance is also usually a separate asset.
Do these things to protect assets in a divorce
Here are some suggestions for protecting assets during property division proceedings in a California divorce:
- After separating, do not use a jointly owned bank account.
- Create an irrevocable trust.
- Update estate plan and retirement accounts after divorce is finalized.
A document known as a qualified domestic relations order (QDRO) is needed to enforce asset division in a 401(k) plan. Also, it is unwise to move funds from a joint account to an individual account without first clarifying California property division laws. In fact, it is best to seek guidance in all aspects of asset division in a divorce.
What if legal complications arise?
One spouse may accuse another of hiding assets in a California divorce. Along with other issues, this can cause a delay in proceedings and can prevent a spouse from receiving a fair settlement. It is wise to seek immediate support from an experienced family law attorney when hidden assets are suspected or another legal complication arises during property division proceedings.