How Can You Protect Your Assets Before Filing for Divorce?

How Can You Protect Your Assets Before Filing for Divorce?

Divorce is never an easy process, and protecting your financial future in the midst of so much change can feel overwhelming. Taking proactive steps before officially filing for divorce can make a significant difference in guarding your assets and ensuring a smoother legal process. The team at Iafrate & Salassa, P.C. is here to illuminate some key steps to take before filing.

Actions to take regarding assets before filing for divorce:

1. Understand marital vs. separate property.
2. Thoroughly document your financial situation.
3. Secure and monitor your finances.
4. Consult with a qualified divorce attorney.
5. Update your estate plans.

Understanding Marital vs. Separate Property in Michigan

Before taking any steps, it is essential to understand how assets are divided in Michigan. Under Michigan law, assets are categorized as either marital property or separate property:

• Marital property includes assets and income acquired during the marriage (regardless of whose name is on the title).
• Separate property includes assets owned before the marriage, inheritances or gifts meant exclusively for one spouse.

However, if separate assets are commingled with marital property, they may lose their “separate” status. Understanding these distinctions is critical in protecting what belongs to you.

Key Steps to Protect Your Assets

1. Document Everything

Financial records are crucial during a divorce. Consider gathering and organizing the following:

• Bank account statements
• Documentation of retirement accounts
• Property deeds or mortgage documents
• Detailed inventories of valuables (jewelry, antiques, vehicles, etc.)
• Credit card and loan statements

Keeping accurate records provides clarity during negotiations and protects you from financial misunderstandings.

2. Secure Your Finances

Be proactive in protecting your financial health during this transitional period. Take steps such as:

• Setting up a separate bank account if you do not already have one. Use this for your individual expenses and earnings.
• Monitoring all joint accounts regularly for unusual activity, such as large withdrawals.
• Avoid draining joint accounts, as this could negatively impact your case in court. Instead, consult an attorney on how to properly handle shared finances.

3. Consult with a Qualified Divorce Attorney

Working with an experienced divorce attorney is an essential part of the divorce process. A legal advisor can:

• Guide you on legal strategies to protect your assets.
• Help prevent you from making mistakes (e.g., accidental commingling of funds, improper financial moves).
• Handle negotiations to ensure a fair division of property.

4. Update Estate Plans

Divorce may require changes to your estate plans to ensure your wishes are honored. Consider:

• Updating your will to reflect new intentions.
• Revising beneficiaries for retirement accounts, life insurance policies or trusts.
• Ensuring your power of attorney documentation reflects the individuals you trust moving forward.

By addressing estate planning early, you take control over how your assets are managed during and after your divorce.

Protect Your Financial Future

Proactively addressing your finances and other assets before filing for divorce can save time, stress and unnecessary losses. Work ahead to maintain your assets by:

• Organizing and documenting your finances.
• Securing your accounts and keeping funds separate.
• Seeking legal advice from experienced divorce attorneys.

If you are ready to take the next step, contact the divorce attorneys at Iafrate & Salassa, P.C., for professional and personalized legal guidance. With nearly 50 years of combined experience, we are prepared to help you at any stage of the process. Schedule a consultation today to start protecting your assets and regain peace of mind.