How to Protect Your Assets in a California Divorce

Protecting Your Assets During Divorce in California

In a divorce, a spouse may try to claim your separate property as theirs. Here’s how to protect your assets during a divorce in California.

To protect our assets in a California divorce, (1) catalog your assets, (2) get them appraised, (3) collect financial documents to (4) prove that you’re entitled to assets, (5) negotiate a settlement, (6) present a prenuptial or postnuptial agreement, and (7) keep all records transparent. Setting up a trust can help protect your assets before a divorce.

1. Catalog Your Assets

To protect your assets, it’s very important to first determine what assets you own. Make a detailed catalog of (community and separate) property you own, including:

Your marital home
Bank accounts
Cars
Businesses
Retirement plans
Antiques or furniture

You should leave no stone unturned. Your spouse is likely trying to keep track of all the assets you two own, so you should do the same.

2. Have Your Assets Appraised

Once you’ve cataloged all of your assets and debts, hire an appraiser to determine the value of this property. An experienced appraiser can estimate what your property is worth; this can give you and your spouse a more accurate sense of how assets should be divided.

3. Gather All Financial and Property Documents

Collect any written proofs of ownership. Make copies of relevant financial and property documents, including:

Tax returns
W-2 forms
Bank account statements
Other financial documents

Take photos of physical property, and make copies of deeds or proofs of ownership. Make sure you take pictures of significantly valued items like antiques or furniture (these can add up).

4. Prove Separate Property

Spouses often try to claim their spouse’s separate property as their own. In some cases, they may have legal grounds to do so. If the separate property has been commingled with community property through jointly held accounts, it may be divided equally between spouses. To keep your separate property, prove that you acquired it before marriage, or that such assets or debts are exempt from California’s community property laws. An experienced property division attorney can protect your assets in a California divorce.

5. Negotiate a Settlement

A great way to protect your assets in a California divorce is to negotiate a settlement. An attorney can protect your rights outside of court and prove that your property is separate, not marital. You can reach a community property agreement through mediation. Spouses may get better property rights through mediation rather than in court.

6. Present Your Pre/Postnuptial Agreement (if you have one)

If you and your spouse signed a prenuptial or postnuptial agreement, you can present it in your divorce. Pre/postnuptial agreements are written contracts that establish property rights in the event of divorce. A written contract between you and your spouse can protect your assets and property rights in divorce.

7. Keep All Records Transparent

Some choose to hide assets from their spouses in a divorce; this is never advisable. If it becomes discovered that you’ve hidden community property from your spouse, your property rights may be jeopardized. The best way to protect your assets in a divorce is to keep all records transparent and hire an experienced property division attorney that knows how to defend your rights.

FAQs About Protecting Your Assets in a Divorce

Does a trust protect assets from a divorce in California?

Assets in a trust made before marriage are generally not considered community property. As long as the funds in the trust are not commingled with marital property, assets in the trust will remain separate property.

Are premarital assets protected in divorce in California?

Yes, assets acquired before marriage are considered separate property and will not be divided in a divorce. However, premarital assets may become community property if commingled with marital assets.

Does a revocable trust protect assets from a divorce in California?

While assets in an irrevocable trust are better protected from a divorce, a revocable trust can protect assets from a divorce. Assets in a revocable trust set up before marriage can be protected in a divorce.

Are beneficiary assets in an irrevocable trust protected from divorce in California?

Beneficiary assets in an irrevocable trust are protected from divorce in California. They are considered separate property; a spouse has no legal right to claim beneficiary assets in an irrevocable trust.

Free Consultation With a Property Division Lawyer in California

If you need to protect your assets during a divorce in California, contact us. We’ll get you in touch with the right attorney to help p[rotect your assets. Get your free consultation with one of our Property Division Attorneys in California today!