Significant wealth can be a blessing or a burden. While it can make for a comfortable married life, it can also become a complex challenge in a high-asset divorce when emotional disputes come into the mix.
As divorcing couples in Pennsylvania deal with equitably dividing their assets, proactively preserving their properties can help them negotiate better for a fair settlement.
Protecting hard-earned assets
Wealth preservation is about managing the value of an individual’s accumulated assets – cash, bank accounts, investments or businesses – over time and minimizing potential risks. Ultimately, it aims to overcome unforeseen events and capitalize on opportunities.
Some essential asset protection strategies include:
- Develop a thorough financial road map: A person cannot protect what they do not know. Make a detailed list. An exhaustive document can track revenue streams and debts to calculate net worth. Check for accounts with shared or transferred ownership to a soon-to-be ex.
- Diversify resources: Spread out assets across classes, such as equities or stocks, fixed income or bonds, and real estate or alternative investments.
- Design business or estate succession: Whether it be a company, inheritance or a gift, ensure that the proper person will own, manage or take over these valuable properties.
This multifaceted process is rarely absolute and static. It requires regular updates and monitoring. Further, tax implications and changing market trends are some risk factors that may impact the effectiveness of preservation techniques.
Building a financially fortified future
A divorcing person’s wealth may only be in danger if no safety walls block threats away. It is crucial to obtain transparent and honest guidance from a legal team that understands the nature and extent of what’s at stake when addressing property division concerns. Doing so also fortifies not only the divorcing parties’ affairs but also the child’s future.