How to Protect Your Assets During a Divorce in Pennsylvania

Deciding to end a marital union can be devastating. You may fear what lies ahead, fearful that you will lose everything you worked so hard for. The reality may set in that you must begin relying entirely on yourself. As you start to untangle the financial decisions that you and your spouse made as a team, matters are likely to become complex.

At Mette Law, our divorce lawyers believe that there is no substitute for understanding the importance of Pennsylvania’s property distribution laws during divorce. If you and your spouse have come to the difficult decision of parting ways, you must speak with a lawyer who can advise you on how to protect your property.

Document Gifts and Inheritances

Any assets acquired during the marriage are generally considered marital property. However, gifts and inheritances are an exception to the rule. Even if you acquired the asset during the marriage, Pennsylvania law deems it separate property. It is essential to retain any paperwork that documents how you acquired the asset, in case your spouse disputes your claim. However, the asset will be considered marital property if you commingle it with matrimonial funds (such as placing it in a joint account) or if you use the money to pay a marital debt (such as your mortgage).

Separate Your Finances

If you are considering divorce, it is wise to open an individual account in which you can allocate your paychecks and other income. However, you must be careful not to deplete marital funds in doing so, as this would violate state law. If you are unsure of how to proceed, you must speak with a Harrisburg divorce attorney who can advise you on the best approach.

Review Your Estate Plan

Many people overlook beneficiary designations, Powers of Attorney, and other fiduciary designations when going through a divorce or separation. Contrary to popular belief, getting divorced doesn’t mean that your estate planning documents will automatically be revoked. Please update them as soon as possible. Failing to update these documents could result in your former spouse inheriting treasured items.

Consider Signing a Post-Nuptial Agreement

In Pennsylvania, marital property is divided under the principle of equitable distribution. This does not mean property is split 50/50, but rather in a manner the court considers fair. Judges review 13 statutory factors—along with any other relevant circumstances—when deciding how assets should be divided.

While many couples protect their interests through a prenuptial agreement before marriage, others opt to create a postnuptial agreement after marriage. A postnuptial agreement can be signed years into the marriage and may help safeguard assets such as:

• Business ownership or investments acquired during the marriage
• Retirement accounts and other long-term financial assets
• Property or valuable personal assets you want to keep separate

Because postnuptial agreements must meet specific legal standards to be enforceable, it is essential to work with an experienced family law attorney to ensure your agreement holds up in court.

A post-nuptial agreement can be signed years after you tie the knot. A post-nuptial agreement may be beneficial to protect your own business assets, retirement accounts, and other assets that you obtained during the marriage. To ensure that your post-nuptial agreement stands up in court, it is recommended that you speak with a family law attorney.

Close Joint Credit Cards

If you have any jointly held credit cards, you should pay off the balance and close them as soon as possible. Although equitable distribution attempts to divide marital property fairly, the laws also apply to marital debt. Clearing your credit card debt is the first step toward achieving financial freedom.

Reach Out to a Skilled Divorce Lawyer Today

Embarking on divorce can make you feel like your entire world is falling apart. Often a heartbreaking decision, you may be in no state of mind to make proactive financial choices. At Mette Law in Harrisburg, PA, our divorce attorneys are available to assist you every step of the way. To learn more about our services or to schedule a consultation, contact us online or call us at (717) 232-5000.