Protecting your assets during a divorce

A marriage breakdown can include complex financial considerations, especially when it comes to protecting assets and how these will be divided.

In the UK, our court system aims to achieve a balanced outcome for both parties throughout a divorce. However, this depends on individual circumstances. We would always advise any person going through divorce that it is essential to clearly understand your legal from the outset to ensure the protection of your assets, particularly if you are a high earner or a business owner.

At Radshaw Solicitors, we work closely with our clients to provide strategic advice on asset protection during divorce proceedings. Taking early and informed action from a specialised solicitor is essential for ensuring financial security.

This month’s blog highlights some key areas that individuals should consider when seeking to protect their assets during a divorce.

Matrimonial assets

In England and Wales, the courts typically divide matrimonial assets acquired during the marriage based on fairness. These assets include the family home, pensions, savings, business interests or inheritance.

Joint accounts and credit agreements

We advise our clients to close or freeze joint accounts with mutual consent. Additionally, monitor any credit cards and joint loans and consider separating bank accounts if this has not already been undertaken. These steps can help to prevent unknown withdrawals from joint funds or the ability to accrue debt without the other party knowing.

Transparency of financial records

Transparency during any separation involving joint assets is essential. Both parties must ensure they have access to bank and savings account statements, property deeds, pension valuations, business records, and evidence of inheritances or gifts.

Concealing assets can cause significant legal issues, not to mention highly unethical. Courts have extensive powers to investigate financial disclosures and can penalise parties who are dishonest. Failing to disclose all assets will lead to legal complications and may significantly weaken your negotiation position.

Prenuptial and postnuptial agreements

Prenuptial agreements and pre-registration agreements allow individuals planning to marry to arrange their financial matters in case the relationship doesn’t work out in the future. A postnuptial agreement is similar but is created after the marriage has taken place. In the UK, prenuptial, postnuptial, and pre-registration agreements are becoming increasingly popular, as divorce can lead to complex financial issues. These agreements provide an effective way to protect your assets from the outset.

Trusts

Trusts can be a strategic way of protecting and separating certain assets from marital property, especially when it comes to inherited assets or assets owned by one partner before marriage. A person can ensure that their assets remain separate from any jointly acquired property during the marriage by placing them in trust. Additionally, trusts can offer tax benefits and estate planning advantages, making them valuable personal financial management tools.

Legal advice

Every divorce is different and has a unique set of circumstances. Early advice can better help you to make informed decisions and protect yourself. A specialist family solicitor can:

• Help you understand your legal rights
• Guide you through mediation or court proceedings
• Assist with financial disclosure and valuations
• Draft or review prenuptial or postnuptial agreements

Our experienced family law team provides clear and tailored advice. If you are experiencing a divorce or wish to safeguard your wealth, please contact us today for a confidential consultation.