Inventory Your Assets

Start by creating a comprehensive inventory of all your assets. This includes real estate, vehicles, bank accounts, investments, retirement accounts, valuable personal property, and any other significant possessions. Documenting your assets ensures you have a clear picture of what needs to be considered during the division process.

Obtain Financial Records

Collect and organize all relevant financial records, such as bank statements, tax returns, mortgage documents, investment account statements, and records of debts. Having these documents readily available will help you and your attorney assess the full scope of your financial situation and facilitate fair negotiations.

Identify Separate Property

North Carolina follows the principle of equitable distribution, meaning assets acquired during the marriage are typically divided fairly but not necessarily equally. However, assets acquired before the marriage or through inheritance or gifts may be considered separate property. Identifying and documenting these assets can help protect them from being divided in the divorce.

Understanding Prenuptial Agreements

A prenuptial agreement, created before marriage, outlines how assets will be divided in the event of a divorce. This legal document can provide clarity and protection for both parties, helping to avoid contentious disputes over asset division.

Benefits of Postnuptial Agreements

If you didn't create a prenuptial agreement, a postnuptial agreement can be established after marriage. This document serves the same purpose as a prenuptial agreement, specifying how assets and debts will be handled if the marriage ends. Postnuptial agreements can be particularly useful if there have been significant changes in financial circumstances during the marriage.

Legal Guidance

To ensure that a prenuptial or postnuptial agreement is legally enforceable, it's important to work with an experienced family law attorney at Koontz Law. We can help draft the agreement, ensuring it complies with state laws and protects your interests.

Close or Separate Joint Accounts

During a divorce, it's wise to close or separate joint bank accounts to prevent potential misuse of funds. Open individual accounts in your name and ensure that any automatic payments or direct deposits are redirected to these accounts. This step helps maintain financial independence and prevents unauthorized access to your money.

Monitor and Protect Your Credit

Divorce can impact your credit if debts are not properly managed. Monitor your credit report regularly to ensure that all joint accounts are being handled correctly and that no new debts are being incurred without your knowledge. You may also consider freezing your credit temporarily to prevent any new accounts from being opened in your name.

Address Joint Debts

Work with your attorney to develop a plan for managing joint debts during the divorce process. This may involve paying off certain debts, refinancing loans, or establishing clear responsibilities for each party. Addressing joint debts proactively can help protect your credit and financial stability post-divorce.

Protecting your assets during a divorce requires careful planning, organization, and legal guidance. By gathering and organizing financial documentation, considering prenuptial or postnuptial agreements, and taking steps to protect joint accounts and credit, you can safeguard your financial interests and achieve a fair settlement. At Koontz Law, PLLC, we are dedicated to helping clients navigate the complexities of divorce with compassion and expertise. Contact us today to schedule a consultation and learn how we can assist you in protecting your assets during this challenging time.