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Protecting separate property from future divorces

On Behalf of | Oct 27, 2017 | High Asset Divorce |

Pennsylvanians who are preparing to get married should take the time to have honest discussions about their finances in advance of their wedding. It is important for people to understand the full picture of their partners’ finances in order to protect themselves later.

Prenuptial agreements can be a good way for people to protect themselves if they end up divorcing in the future. In addition to prenuptial agreements, there are other ways that people can protect their assets if their marriages do end in divorce. When divorces happen, the separate property that each spouse brought into the marriage will remain as his or her own. This means that it will not be subject to division unless it has become intermingled with the marital estate.

In order to preserve the separate nature of the property, it is important that it is kept separate from the marital estate. The spouses who brought money into the marriage should keep those funds in their own separate accounts. They should open joint accounts with their spouses out of which they can pay for their marital needs. If a persoj brings a house into the marriage, the house should remain in that person’s name. He or she should pay for any repairs and maintenance out of his or her own account to keep it separate.

People who are going through high-asset divorces may have complex issues that need to be resolved with their divisions of property and debt. Prenuptial agreements can help to make the process smoother. If there is separate property that has become commingled in the marital estate, the property may lose its exclusionary status and be subject to division in their divorces. Attorneys may help to draft prenuptial agreements that protect their clients’ financial interests in the event that their marriages end.

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