A high-asset divorce involves at least one million dollars in net liquid assets. However, valuable fixed assets are more difficult to divide in a divorce. Maryland remains an equitable distribution state, wherein if you and your spouse cannot come to terms with a settlement agreement, the court will divide your marital property fairly and justly. You will have little control over their decision, which can be particularly stressful for those people with much more at stake. Fortunately, you can protect your assets and preserve your wealth despite a divorce decree by using the suggested agreements below.
A prenuptial agreement is a contract you enter with your partner before you marry. It outlines how you and your future spouse will address income disparities and property rights issues, including property division, alimony and inheritance rights. It can also include the rights and responsibilities of each party to separate and marital property and the limitations of their rights.
Because you will both need to agree on the terms, you already know what to expect when you divorce. It is a great and effective way to mitigate disputes and prepare for the unexpected. The only issue here might be that you were not able to create one before the marriage, in which case you could still draft a postnuptial agreement.
A postnuptial agreement is like a prenup, except you create it after marriage. You can use it to determine clear ownership of property and settle matters related to alimony, spousal support and child support in the case of a divorce. It will only be enforceable if your marriage ends in divorce or separation.
You may share the ownership of your business with your spouse, and a divorce can have detrimental effects on your personal and business relationships despite wanting to maintain a professional stance. A shareholder agreement can allow the spouses to determine what will happen to their business interests if or when they divorce and ensure the business operations will run smoothly regardless of discord between the married owners.
By establishing an agreement before you even contemplate divorce, you can take steps to safeguard your finances and set explicit boundaries.