Just about two-thirds of people entering into a second marriage will divorce. For third marriages, the statistic is in the realm of three-quarters. Because of this, it is incredibly important to be prepared to protect your assets when you are getting remarried.
Sign a Prenup
First and foremost, the simplest way to keep your divorce settlement and any assets gained from a previous marriage separate is to sign a prenuptial agreement before you marry your next spouse. It is not an easy conversation to have with your spouse and, in some cases, may be a deal-breaker, but prenups are incredibly helpful and perhaps the most important tool you have available for asset protection.
If you have already married and did not sign a prenup, there are still steps you can take to protect your settlement. Keeping your assets separate is how you do this. Commingling separate assets with marital assets makes tracing money so complicated that often, the courts will consider all of the commingled assets to be marital, in which case they will be subject to equitable division. It is not that easy to keep certain assets, such as houses you owned from your first marriage, separate ”“ if you spend any marital assets on home upkeep and maintenance, for example, the courts can find that part of the home’s equity is now considered marital property. Courts can also consider increases in home value as marital property. If you rent the home out, the income from that can be marital property as well. Again, this points to the prenup as the simplest way of protecting your home.
Speak with a Qualified Colorado Family Lawyer
You will want to make similar considerations for other large assets such as vehicles, businesses and inheritances. Before you get married, or as soon into your marriage as possible, you will want to consider talking to a qualified financial advisor as well as a family law attorney.
Our Denver divorce attorneys can advise you on the right path to take to ensure that your property is protected before your second marriage.