The most effective approach to asset protection is preparation. If you have assets you wish to shield from potential divorce, it is far easier to take precautions before the marriage or before the relationship breakdown, for example by entering into prenuptial and postnuptial agreements. However, there are still steps to be taken to protect assets during divorce proceedings.
1. Conducting thorough valuations: The best way to ensure your assets are protected is to conduct a thorough and accurate valuation. Spouses often employ their own valuation teams, which may produce estimates significantly higher than the true value of joint assets. To counter these false valuations, you will need strong arguments demonstrating the origins, liquidity, and actual value of everything in the marital pot.
2. Avoiding the temptation to hide assets: It might seem appealing to hide or protect assets during a divorce by using trusts, transferring them to third parties, or placing them in offshore accounts. However, it’s important to resist this temptation. Courts strongly disapprove of such actions. Not only are these asset transfers likely to be undone, but they can also negatively affect the final settlement.
3. Seeking professional help: Our unique blend of family law experience and forensic accounting will help you to convey the true nature of your assets to the court, ensuring the final financial settlement is a fair reflection of your joint assets.
If you are considering or going through a divorce, we can help. Click below for a free initial consultation with one of our expert divorce solicitors.
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