Ways To Protect Your Financial Interest Before, During, And After A New York Divorce

In this article, you can discover…

• How to best protect your assets during a New York divorce.
• The meaning of a fair division of assets during divorce.
• The role of legal tools in protecting your assets. 

1) What Are The Best Strategies To Protect My Assets During A Divorce?

Contact a divorce attorney as early as possible in the process – ideally before filing. It’s also wise to consult an accountant, a personal financial planner, and a wealth protection advisor. If you have children, consider setting up a 529 plan to help pay for their college education and protect those funds from division.

New York law mandates that assets be distributed fairly and equitably in a divorce, but “fair” can often feel subjective to those going through the process.

To safeguard funds in your business account from being distributed, consider reinvesting them back into your business, particularly if you own a small business. Be mindful of the amounts you pay yourself in the months or years leading up to a divorce, and consider directing those funds into marketing and advertising.

Why is this important? Any money deposited into bank accounts, investment accounts, or retirement accounts while married is generally subject to a 50-50 division with your spouse. Work closely with a wealth protection advisor and a certified divorce financial planner to strategically allocate your money and minimize the impact on your assets.

2) What Distinguishes Marital Property From Separate Property?

Marital property is simply any property that is either acquired or accrues active value during the time in a marriage. Separate property is any property or assets that you owned prior to the marriage. It can also include some property accrued after the marriage, such as gifts that are clearly made to one spouse or an inheritance. 

So long as that property is not commingled with marital assets, it may be considered separate property. However, marital property is the general presumption in New York, and an attorney can review your assets and help you better understand the distinctions that pertain to your case. 

Attorney David Bliven is a seasoned, far-sighted divorce attorney serving New York. For over 25 years, he’s helped clients just like you protect their finances before, during, and after a divorce, allowing for greater certainty and peace of mind throughout.

Have questions about protecting your assets during a New York Divorce?
Reach out to the Law Offices of David Blieven at (347) 797-1188 for an initial consultation today.

3) How Do I Protect Separate Property From Being Divided In A Divorce?

Make sure your separate property is segregated. If you receive an inheritance or a settlement payment, it’s wisest to deposit that money into a fully separate, brand new savings account in your name alone. Then leave that amount alone! Adding money from joint accounts will commingle that amount, making it fair game in a divorce. 

4) What Role Do Trusts And Other Legal Tools Play In Protecting Assets During A Divorce?

Trusts may not protect assets as well as you think they will. For example, if a trust is in your name alone but some amount of money in the trust comes from marital assets, the entire trust amount is now distributable.

A trust that is entirely separate from marital assets and takes in nothing from shared income streams can be described as truly separate property, however. You may also wish to structure your trust to pay you out after a certain period of time has gone by to avoid this amount being claimed during divorce. 

This can be especially helpful if you have assets from a personal injury settlement or similar awards. 

5) What Steps Can I Take To Manage My Finances During And After A Divorce?

Make sure that you hire a good divorce attorney as early in the process as possible, along with a forensic accountant. Get in touch with a certified divorce financial planner and a wealth protection advisor to help you manage your finances and plan ahead in light of a divorce. 

Your financial planner can examine your current income and expenditure and factor in future post-divorce expenses to suggest a truly equitable and fairer division plan. This can help you come out in better financial shape in the long run.

Your financial planner can also help you budget for future child support and spousal maintenance payments and work to find you a financially prudent, agreeable new neighborhood to live in. This helps protect you through a divorce and beyond and move ahead with far fewer financial concerns. 

Still Have Questions? Ready To Get Started?

For more information on Protecting Your Finances During A NY Divorce, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (347) 797-1188 today.