Divorce is not inevitable but many people find the process of thinking about their future finances and ending their marriage as extremely difficult when they are just planning the wedding itself. However, a strategic wealth plan can be an important component of asset protection planning.
Divorce is a risk that every marriage faces. It is strongly advised that every individual thinking about getting married consider asset protection for their own sake as well as for the future of their children and future generations. The best financial protection that an individual who has any significant wealth entering into a marriage can provide is to put together an asset protection trust or classify a dynasty trust.
Other multi-generational wealth planning tools can also be advantageous. This protection can help remove the wealth from the hands of future creditors, future ex-spouses, inappropriate beneficiaries or lawsuit decisions. This can also help individuals to avoid starting a marriage without having the uncomfortable conversation about prenuptial agreements.
Asset protection planning is an important topic that parents should always consider, as well as any couple that intends to protect their assets from unintended consequences. There are several different types of assets that you can protect in the process of asset protection planning including:
- Real estate
- Financial gifts
Having the assets protected inside a domestic asset protection trust or an irrevocable trust is strongly recommended.