Ordway Law Group, LLC
Ordway Law Group, LLC
Divorce & Family Law

How to protect assets without a prenup

| Apr 2, 2019 | Uncategorized |

Couples all around Georgia have to contend with divorce. A recent study showed that the city in Georgia with the highest population of divorced residents is Winder. In that town, 18.4 percent of people have gone through a divorce. 

All couples planning to marry should consider the advantages of a prenuptial agreement. However, many couples do not have this arrangement and may not feel like getting one. There are still steps these individuals can take during the marriage to protect their assets in the event of a divorce. You cannot do much once the divorce proceedings begin, so these actions need to happen within the marriage itself. 

Valuate your business when you marry

Without a prenup, your spouse may have entitlements toward the appreciation of any business you own. Appreciation is the key term, so you should have your business evaluated when you marry. If your business is worth $2 million when you marry and then worth $2.5 million when you divorce, your spouse would only have entitlements toward one half of the different. That means your spouse could only have a claim to $250,000. It may still seem like a lot, but it is better than potentially losing millions of your company in a divorce. 

Use non-marital funds when purchasing non-marital property

In a divorce, the couple needs to figure out how to split all marital property. Each spouse may still have separate property that does not require division. For example, you may want to purchase a new building to franchise your business. Instead of dipping into any marital bank accounts, you should only use money you own separately. This can include funds you acquired when you were still single or funds you acquired through an inheritance. If you use marital funds to purchase the property or make renovations, then that property is up for division if a divorce comes. You may never divorce, but it is better to play it safe in the meantime. 

 

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