Are there ways to preserve wealth in a divorce?

On Behalf of | Oct 4, 2021 | High-Asset Divorce |

People may accumulate a significant amount of wealth in many ways. They may hope these assets continue to mature and grow in value, providing a stable retirement nest egg. A divorce could put personal wealth at great risk, and New Hampshire spouses may wonder how to preserve what they amassed. Protecting assets in a divorce comes with challenges, but a positive outcome may be possible.

Protecting assets in a divorce

Protecting assets should follow a legal approach. Some may try to hide assets, which could leave them open to legal troubles. Other strategies, such as asking a spouse to sign a pre or post-nuptial agreement, would provide a legal way to protect assets. Absent such a contract, other plans may be worth exploring.

Choosing an appropriate jurisdiction for both marriage and divorce could help someone navigate or outright avoid certain problems. Persons with significant wealth may prefer to avoid community property states. A person living in New Hampshire might find the equitable distribution rules preferable.

Some might choose to explore less common strategies, including moving assets to an offshore foundation. “Exploring” could involve examining the feasibility and legality of such a strategy. Taking actions that backfire might prove self-defeating.

Negotiating assets in a divorce

After filing for divorce, the two parties may come together to reach a settlement agreement. Negotiating a settlement might be far less costly and time-consuming than allowing things to play out in family court.

Mediation may be appropriate for those at an impasse. Even nonbinding mediation could lead to results that all parties find valuable. The process might lead to one spouse keeping more of his or her wealth. The other spouse could receive an agreeable settlement and support payments. Things may work out for everyone.