A married couple may combine accounts, split expenses, share assets and use each other’s income. If things don’t work out and you decide to part ways, division of assets can be a major issue. Sometimes divorcing spouses divide assets through mediation before going to court. This is called a ‘no-contest division of property’. However, in reality, in regards with property matters, things can get complicated, especially when one spouse feels some assets are separate from being jointly held. Transparency is crucial in detailing every asset, financial resources, investments and liability.
Understanding Community Property
Wisconsin is a community property state. This implies that all marital property must be shared equally. Whether assets, property, or debt acquired during a marriage is considered community property, except for inheritances and gifts. You need to carefully plan to help protect your assets in a Wisconsin divorce. Here are some ways to ensure your assets are protected if you decide to part ways with your spouse.
4 Ways to Protect Your Assets During a Divorce
1. Organizing Your Financial Information
Properly organizing financial information can help you understand your financial situation better and protect your assets. This includes:
- Income statement
- Tax statement
- Investment accounts
- Bank investment
- Value of property, jewellery, vehicles, etc.
This information should be protected and kept confidential so that nobody can access it. Also, review taxes and other financial documents for future use.
2. A Prenuptial Agreement
A marital property agreement or prenuptial agreement is a legally binding contract couples enter into before getting married. This agreement specifies how the assets will be divided if you and your spouse decide to divorce. Prenuptial agreement should be written, signed by both spouses and include a frank disclosure of all assets, investments, income, and debt.
3. Establishing Separate Property
A separate property is the property that you’ve owned or acquired before and after marriage. This can be either a gift or an inheritance that is not considered in the division of property during divorce. Though the gifts given between the spouses are equally divided.
4. Opening a Separate Bank Account
A separate bank account in your name can protect your money and restrict access to others. It is crucial to understand that the idea is not to hide assets, but to protect them. The Wisconsin state statutes order disclosure of all assets. Failure to disclose implies misleading the court, resulting in a cost order against you, and dismissal of proceedings, or worst case scenario, guilty of contempt.
Contact MacGillis, Wiemer, LLC, Family Law Attorney
If you are looking for an experienced Milwaukee divorce attorney to help in maintaining financial assets during divorce, contact MacGillis Wiemer, LLC for a free consultation. Our team of property division lawyers can help you reach an agreeable property division that suits your interests. Let us protect you. For consultation, call us.