You build your wealth profile and accumulate assets during your marriage with time and hard work. Then, when you face a divorce in North Carolina, it is natural that you worry about what will happen to that profile – and all that work. Can you maintain and secure your wealth? While marital assets will be subject to division, there are essential steps you can take to protect your wealth.
Dividing property? You will have to prepare for a decrease in wealth
Pew Research Center reports that overall, individuals not only have less household income but also less wealth after a divorce. This makes sense, as a divorce can often mean you move from a two-income household to a single income household.
However, wealth is a different matter, as you well know. Your net worth is not only made up of dollars and paychecks, but all of the assets you own. Dividing your marital property in a divorce could naturally mean less overall wealth, since spouses must divide assets like:
- Bank and savings accounts
- Retirement accounts or stocks
- Real properties, from the home to vacation homes
- Business assets or royalties
It is understandable that even high earners would still face a decrease in wealth and household income after dividing their shared property. On top of that, we highlighted in a past blog post how being single tends to be more expensive for individuals, whether they divorced or never married. Therefore, it is critical not only to financially prepare for the division of your property, but also your single life after the divorce.
Planning to protect assets is a must
Regardless of how you built your wealth, you want to protect it – especially in the face of a divorce. It will be critical to:
- Never hide assets: Hiding assets to keep them from property division can have very serious consequences. Rather than protecting your wealth, it could put it at risk. Do not move assets or lend money to family members before or during the divorce.
- Seek knowledgeable counsel: Financial professionals or legal advocates who know how to protect assets will be indispensable during your divorce. It is not impossible to secure the assets you value the most but it will require strategic preparations, negotiations and solutions.
- Conduct regular audits: Review the inventory of your assets throughout the divorce. Even if you are familiar with your profile, remaining organized and aware will be key.
To protect all you worked for, you must move forward with care and be proactive. Once you decide to divorce, it will be critical to take steps to secure your financial health and wealth.