Understanding the difference between high-asset and standard divorces can be confusing. The main way these two processes differ is due...
Understanding how to protect your wealth in a high-net-worth divorce could help you preserve your assets. Whether you have nurtured a business from its inception or you have inherited property, having to split such assets during a divorce may feel unfair.
Canada’s Family Law Act generally requires an equal division of property after a divorce, but there are several approaches we could employ that may help you to retain your wealth. Contact the knowledgeable lawyers at The Riley Divorce & Family Law Firm to learn more about these strategies.
The first step in protecting your wealth in a high-net-worth divorce is to create an inventory of your assets. Make a list of your bank accounts, investments, vacation homes, retirement accounts, and property. Do not forget to also record your debts, such as mortgages, loans, and credit card balances.
The lawyers at The Riley Divorce & Family Law Firm may use such an inventory to negotiate with your spouse during a divorce. Our team could explain which assets might be considered marital property, regardless of who holds the title. This may help you safeguard as many assets as possible during the process. Not only are good records essential for every divorce proceeding, but being transparent about such accounts could help minimize financial disputes.
A prenuptial agreement is executed before the marriage, while a postnuptial agreement is signed after you take your vows. Both may be used as a means to protect your wealth. These arrangements are legally binding when properly executed and outline how a couple intends to divide their assets during a divorce.
In such agreements, your lawyer may specify how pre-marital assets, earnings, and inheritances are managed. They could also indicate which spouse could retain possession of certain properties, investments, and currency.
Our firm strongly recommends that high-net-worth spouses open and maintain separate bank accounts before and during marriage. The purpose of this practice is to keep funds from commingling, and it serves as an effective strategy that may protect your wealth. In some cases, it may be sensible to open a joint account to pay marital debts, including a mortgage on a primary home. However, it is still a good idea to avoid taking on expenses that are not specifically yours, such as your spouse’s premarital debts.
Navigating a divorce could be an emotionally charged experience. Fortunately, protecting your wealth in a high-net-worth divorce does not have to be complicated if you have the assistance of a skilled lawyer.
Our Toronto-based firm is ready to support you through your divorce and will work to retain the assets that are important to you. Contact The Riley Divorce & Family Law Firm 24 hours a day to learn more about how we could help you. Our goal is to minimize the impact your divorce has on your finances.
Paul Riley Law Office
