Couples planning to get married hardly want to think about the possibility that their marriage may not work out. Unfortunately, the fact that 45 percent of all marriages end in divorce is a clear indication that it may be prudent to address finances with a soon-to-be spouse. While many New Jersey couples may feel that, by discussing finances, they seem to not believe their marriage will survive, this is not really the case.
In most cases, a prenup is the first way that comes to mind to protect assets, but there are other ways that assets can be protected. One way to protect assets is to keep separate any money both spouses had before the marriage, while joint accounts can be opened after the wedding. Secondly, it is important to keep property in individual spouses’ names. Any major payments made toward the property, including taxes, should be paid by the person in whose name the property is.
Records should be kept of expensive gifts received, assets inherited as well as any significant procurements made. These records will act as proof that these assets can be considered as individual property, instead of communal property. A last tip is to consider a revocable trust for premarital funds in order to ensure that these funds and any growth on them do not become part of the marital assets.
Money can easily become a point of contention, but if financial matters are discussed timely, problems may be avoided. Furthermore, New Jersey couples may benefit from consulting with both a family law lawyer and a financial adviser to ensure the protection of their individual financial assets. Prudent actions may not only be advantageous in case of a divorce but also may protect the assets of one party should the other party find him- or herself in financial difficulty.
Source: www.brides.com, “How to Protect Your Assets Without a Prenup,” Jaimie Mackey, Oct. 14, 2017