Protecting Your Assets During A High Net Worth Divorce

It is no secret that divorce is expensive and people going through the process often fear that they will lose everything. Fortunately, this is not the way divorce works in Pennsylvania. Like the majority of the states throughout the country, the Keystone State follows an equitable distribution model in divorce proceedings. This means that property is divided fairly, but not necessarily equally during divorce.

Still, marital assets are all subject to division during divorce and this is particularly concerning for people who have substantial assets. Below, our Delaware County property division lawyer explains how to protect your assets.

Identify Goals for Yourself 

It is critical that you evaluate and prioritize the property you want to retain after the divorce. While you may first think of assets that have sentimental value, it is just as important to consider the long-term value of certain types of property, such as retirement accounts. When setting goals for yourself, speak with an attorney who can help you determine if they are realistic and attainable.

Protecting Retirement Accounts 

Retirement savings and accounts are one of the most common types of property to be divided during high asset divorces. While some types of accounts do have certain protections, you must also follow certain rules when dividing these accounts. For example, a Qualified Domestic Relations Order may have to be obtained when transferring funds from these accounts.

Consider the Tax Implications 

If you keep certain types of property after the divorce, it may have tax implications. For example, your bank account and retirement account may both be subject to division during divorce. If they are of approximate equal value, it may seem practical to keep one while allowing your spouse to have the other. However, withdrawing from the bank account will not have any serious tax implications, while withdrawing from the retirement account will. Always work with an attorney when dividing marital property so you can determine what property you want to keep, and how taxes will affect it.

Avoid Additional Debt 

There is rarely a good time to incur debt, but you may think doing so can benefit your divorce case. After all, if you take on more debt it could lower the overall value of your assets, and may even result in a greater spousal support reward. You may also think that if you incur debt before your case is final, your spouse will be liable for paying half of it.

However, if you incur significant debt before or during your divorce, it can actually hurt your case. Family law judges know the tactics people use to protect themselves during divorce and they frown upon them. If you take on significant debt before or during your divorce, you will likely be liable for paying it back.

Our Property Division Lawyer in Delaware County Can Protect Your Assets 

At Barbara Flum Stein & Associates, our Delaware County property division lawyer can help you through the divorce process and protect what is most important to you. Call us now at 610-565-6100 or contact us online to schedule a consultation and to get more information.

Source:

legis.state.pa.us/WU01/LI/LI/CT/HTM/23/00.035..HTM