People in Ohio who are engaged may want to make plans to protect their money in the event of a divorce. While it may seem cynical, doing so can ensure that the appropriate protections are in place in case something unexpected occurs. Finances can be affected by divorce as well as potential collections from creditors for balances owed by a partner.
Individuals may also find that it’s easier to create an estate plan where certain assets remain separate property. As part of the process, inheritances should be deposited into shared accounts. This is so that estate holders can have more control over who receives the assets.
Many couples opt to have joint accounts because it can be convenient. However, it may be wise to create new joint accounts instead of adding a spouse to an existing account. For those who have already combined their funds, new accounts should be opened in their name only upon receipt of an inheritance or gift. Individuals may also find that separate accounts are also ideal for any expenses related to properties that are in their name only.
One should also take care with how they handle real estate, particularly with whose names are added on the titles of home or rental properties. Furthermore, it is vital to keep in mind that separate property may be considered marital property if joint funds are used to pay for maintenance, remodeling or the mortgage.
An attorney may advise an engaged client about the benefits of completing a prenuptial agreement before getting married and how it can protect assets that are meant to be kept in their side of the family. If a divorce is inevitable, the attorney can help a client obtain the desired settlement terms regarding property division.