There are certain key elements you want to protect during a divorce. Asset Protection in a divorce usually consists of actions involving a spouse. Spouses who want to protect there finances and avoiding splicing property up. Personal property and marital property are the assets they are looking to protect. Even if the said property is in a single name. It may still be subject to division under the laws of the state or court system.
Inheritance and distinct property can possibly be separate from marital property. But individual property can and does sometimes get mixed up with marital property. If you have personal property such as money that was put into any marital accounts after you were married. These funds are now marital property.
This instance is where it would have been handy to have had a prenuptial agreement. This in turn would have helped to keep your assets safe. But if there is no such agreement your most likely going to loose at least have of those funds.
In this case protecting your individual assets would have saved you a lot of trouble. This would be called an Individual Asset Protection. This would have been included in the a fore mentioned prenuptial. Simply put, To keep your asset's safe you would have just not included these funds in the marital accounts. In this light a prenuptial is not necessary to protect yourself with asset protection.
If before marriage, All to keep Asset Protection in a divorce. Just keep your accounts separate and you will have used Asset Protection in divorce. As you can see Asset Protection can be very simple or very complicated. Especially if involving a court of law. You never know what a judge of the courts may do or order during a divorce.
You may have certain other rights in your state of jurisdiction. Remember that some states don't allow the protection of asset's in any circumstance. Know your state and local laws in this area. Also certain country's don't allow asset protections in any form.
Have your asset's planned before you get married to avoid any hatred or despise for the other party. It is that simple to make asset protection in a divorce work for both party's involved.
An asset protection trust offers a perfect solution for holding certain assets (life insurance policies, cash investments, real property, etc) for a specific beneficiary, which can be a group or a single person. There are several different advantages to transferring the personal belongings into a trust. Here are several of the key advantages that might be worth considering:
Protection from fees related to care homes - If an elderly relative needs to go into a long-term residential home, it is often the case that the associated costs will need to be personally met. A common way for the local authorities to receive funds for the long-term care is to essentially inherit the assets, with your main asset relating to the home.
By taking the action at an early stage that is well ahead of requiring any potential care assistant, you are able to protect the home and make certain the full benefit of the property is passed on to the chosen family members.
A highly effective solution for solving matters relating to inheritance - An asset protection trust can make it easier to transfer the belongings in the event of death (due to no transfer of ownership), and makes sure the assets are given to the persons identified at the time of writing the will. If the family circumstances are quiet involved where step-children might feature or where a marriage has broken down, you will likely find that using a trust can make the process go that much smoothly.
Helps to protect the inheritance from creditors - In a situation where a beneficiary of a Will is expensive financial difficulties with debts, any money that is automatically transfer via the information given in a Will could be seized from them by the creditors seeking to recover outstanding debts. But, since any assets transferred to a trust will remain part of the trust even after death, they aren't collectible by the creditors and will remain the full property of the beneficiaries.
Making certain those in need are given the right help - A further quality aspect to relying on the asset protection trust companies is to help those beneficiaries that might not be able to manage on their own. Whether this might relate to someone who often makes poor decisions or physically impaired, a trust is able to give specific guidance on how the benefit is passed to an individual to make certain they are cared for and provided long-term security.