James R. Schaffer, P.A.

How to preserve wealth during property division

| Jul 17, 2020 | High Asset Divorce |

Preparing for a strong financial future can be challenging, and going through a divorce can create unique hurdles. It can be difficult to transition from a two-income household to a single-income household for example. Or maybe you uncover hidden debt that your spouse ran up over the years. While these can be troubling situations, it is possible to preserve one’s financial foundation during property division.

Awareness is key in property division

Florida couples who are pleased with their division of assets usually have one thing in common — they are aware of all their assets, both marital and separate. This can be harder than some realize, especially when it comes to investments and alternate streams of income. Reviewing insurance documents, tax returns and other important financial statements can uncover assets that one might not know about.

Identifying marital and personal debt is perhaps as important as any other asset. Many debts are considered marital, even if only one spouse accumulated some of those debts. This means someone could be responsible for a student loan, credit card or other debt that he or she was not even aware existed. Clearly establishing each spouse’s responsibility for repayment is vital.

The risk of enduring financial burden may make you hesitant to file for a divorce. It is understandable to want to preserve one’s financial security, but this should not hold you back from making a necessary decision. It may also be beneficial to speak with a knowledgeable attorney who can help explain how the property division process works as well as your options for preserving your wealth.