If you think that your marriage is coming to an end, there are steps that you can take in an effort to preserve your assets. It may also be wise to think about preserving assets such as a car or Illinois home before getting married or before you or your spouse begin official divorce proceedings.
Execute a prenuptial agreement
A prenuptial agreement can help protect your assets before a divorce because it can be used to override state asset division laws. For instance, you can stipulate that a business created after the marriage began is your sole property. You could also protect your financial future by asking that each party to the marriage waive their right to alimony. If you have children with your spouse, you will be required to support them financially whether you have custody or not.
Create a trust
Property that is held in a trust is considered to be outside of the marital estate. Therefore, you don’t have to worry about losing it in a divorce. However, you can agree to voluntarily transfer assets out of the trust as part of a divorce proceeding if it makes sense to do so. It’s worth noting that a trust may be invalidated if there is reason to believe that it was created simply to shield assets that should be considered part of the marital estate from being divided in a settlement.
Obtaining a favorable outcome in a divorce proceeding often comes down to how well you prepare for settlement talks. Tax returns, bank statements and other documents may be used as evidence that your spouse has no claim to assets such as your house or bank account. These documents may also be used to help bolster your claim that you should receive financial support.
