How Can You Protect Your Assets During a Divorce?

You can protect your assets during a divorce by identifying what you own, gathering financial records, documenting separate property, monitoring joint finances, and carefully reviewing any proposed property division. In Georgia, marital property may be divided equitably based on each spouse's equitable interest. An equitable division does not necessarily mean each spouse receives an equal share. 

Divorce can leave you concerned about what will happen to your home, savings, retirement accounts, business interests, and other property. You may also have questions about property you owned before the marriage or received through a gift or inheritance. Taking action early can help you understand your financial position before you decide what to do with your property. 

At Rife Law Firm P.C. in Cumming, Georgia, Attorney John W. Rife assists clients with contested and uncontested divorces, including disputes involving the identification and division of assets. He can review your financial circumstances, explain your options, and represent your interests in property disputes. Contact the firm now to schedule a free 30-minute consultation. 

Step 1: Identify Your Marital and Separate Property

One of the first steps is determining which assets may be divided in your divorce. Georgia courts distinguish between marital property that may be divided and separate property that belongs to one spouse. 

Property you owned before the marriage may be separate property. Property you receive individually as a gift or inheritance may also qualify as separate property. However, questions can arise when separate and marital funds are combined or when a separate asset increases in value during the marriage. 

For example, suppose you owned a house before you got married. If the house increased in value during the marriage solely because local property values rose, that increase generally remains separate property.

However, marital contributions to the property, such as payments that reduce the mortgage principal, can create a marital interest. Appreciation resulting from either spouse's efforts may also be subject to equitable division. Attorney Rife can review when and how you acquired an asset and the evidence supporting your claim that some or all of it is separate property. 

Step 2: Gather Records of Your Assets and Debts

You need accurate financial information to understand what may be at issue in your divorce. Gather documents showing your assets, debts, account balances, and other relevant financial information. Useful records may include: 

• Bank and investment statements: Collect statements showing balances, deposits, withdrawals, and transfers. 

• Real estate documents: Keep deeds, mortgage statements, purchase records, and documents related to the property's value. 

• Retirement account records: Obtain statements for pensions, 401(k)s, IRAs, and other retirement benefits. 

• Business records: If either spouse owns a business, tax returns, financial statements, and ownership documents may be relevant. 

• Debt records: Gather statements for mortgages, credit cards, vehicle loans, personal loans, and other outstanding debts. 

Georgia's Domestic Relations Financial Affidavit requires detailed information about assets and liabilities and provides space to identify assets claimed as separate property and the basis for that claim. 

Step 3: Document Your Separate Property

If you claim that property belongs only to you, keep documents that show where it came from. For example, statements from around the time of your marriage may help establish the value of an account you already owned.

If you received an inheritance, estate documents and account records may help establish the source of the funds. This documentation can be especially important if separate property has been combined with other funds or changed during the marriage.  

Step 4: Monitor Joint Accounts and Debts

Pay attention to accounts and debts you share with your spouse. Keep current statements and watch for significant withdrawals, transfers, charges, or other changes that could affect your financial position. 

Do not assume that withdrawing money, emptying an account, or transferring property will protect it during a divorce. Moving assets can create additional disputes and does not necessarily prevent the property from being considered during the case.  

Step 5: Provide Accurate Financial Information

Protecting your assets does not mean hiding them. Georgia court rules require parties to provide financial information before temporary or final hearings involving issues such as equitable division of property and alimony, subject to certain exceptions. 

If you believe your spouse has not disclosed property or has transferred assets, Rife Law Firm P.C. can review the records and information you have. Attorney Rife can determine what steps may be available to obtain additional financial information and address the issue during your divorce. 

Step 6: Pay Close Attention to Complex Assets

Businesses, real estate, investment accounts, pensions, and other retirement benefits can raise questions about ownership, value, and what portion may be subject to division. A business owned before marriage, for example, may include both separate and marital interests if its value increased during the marriage because of a spouse's efforts.

A retirement account may also include benefits accumulated both before and during the marriage. Determining the source and value of these interests can help you evaluate them before agreeing to a property division. 

Step 7: Review a Property Settlement Before You Agree

You and your spouse may be able to resolve property issues without having the court decide them. Before agreeing to a settlement, understand which assets and debts are included and what you will receive or give up. 

Mediation may help spouses discuss unresolved property issues with the assistance of a neutral third party. The mediator does not decide the dispute. Instead, the mediator helps the parties work toward their own agreement. 

Whether you reach an agreement through negotiation or mediation, review the terms carefully before signing. Consider the assets involved, their values, associated debts, and how the proposed division may affect your finances. 

Talk to Rife Law Firm P.C. About Protecting Your Assets During Divorce

Protecting your assets during divorce starts with knowing what you own, documenting separate property, and keeping accurate financial records. Monitoring joint finances and carefully reviewing a proposed settlement can also help you make informed decisions before the divorce becomes final. 

At Rife Law Firm P.C. in Cumming, Georgia, Attorney John W. Rife assists clients in Forsyth County with divorce and other family law matters. He can review financial records, address disputes over marital and separate property, and represent clients in negotiations or contested proceedings. Contact Rife Law Firm P.C. today to schedule a free 30-minute consultation.