How to Protect Your Assets During a Divorce in Wisconsin

Divorce can be an emotionally challenging time for many, and along with the emotional toll, there is often a financial one. In Wisconsin, as in many other states, protecting your assets during a divorce is crucial to ensuring that your financial future remains intact. Whether you are seeking to protect family heirlooms, retirement accounts, or business interests, understanding how Wisconsin's laws work and how to strategically plan for your financial future can make a significant difference. In this blog, we'll explore how you can protect your assets in a divorce from the perspective of Wisconsin family law.

1. Understand Wisconsin's Marital Property Laws

Wisconsin is a community property state, meaning that assets and debts acquired during the marriage are considered joint property, unless proven otherwise. In simple terms, everything you or your spouse earned or acquired during the marriage is typically divided 50/50. However, there are exceptions, and certain assets may be classified as separate property if they meet specific criteria.

Separate Property:

• Property owned by one spouse prior to marriage.

• Property received as a gift or inheritance.

• Property designated as separate in a prenuptial or postnuptial agreement.

Understanding this distinction is key to protecting your assets in a divorce. For example, if you owned a business before marriage or inherited a family heirloom during your marriage, it may be considered separate property and not subject to division.

2. Keep Detailed Records of Your Assets

In order to protect your assets, you must first know exactly what you have. This includes not only physical property such as real estate, vehicles, and jewelry but also intangible assets like bank accounts, retirement savings, stocks, and business interests. Maintaining meticulous records is essential, particularly for items that may be considered separate property.

3. Consider a Prenuptial or Postnuptial Agreement

If you are entering into a marriage or already married and are concerned about protecting your assets, a prenuptial or postnuptial agreement is a valuable tool. These legal agreements can outline how assets will be divided in the event of a divorce and can protect assets.

In Wisconsin, a prenuptial agreement is particularly effective in establishing what will be considered marital and separate property. A postnuptial agreement, created during the marriage, can serve a similar function if you wish to redefine how property will be divided.

4. Seek Legal Advice Early On

If you are facing a divorce in Wisconsin, seeking legal counsel early on is one of the most important steps you can take. An experienced family law attorney at Everson Law Firm can help you understand the specific laws regarding asset division and can help you craft a strategy for protecting your assets.

Our lawyers can also assist in ensuring that any agreements (such as prenuptial or postnuptial) are enforceable and in accordance with Wisconsin law. Additionally, they can help you navigate the often complex financial aspects of divorce, including the valuation of assets like retirement accounts and businesses.

5. Get a Fair Valuation of Complex Assets

Some assets may be difficult to value accurately, such as a family-owned business, real estate, or complex retirement plans. It is crucial to have a fair valuation done to ensure that these assets are divided equitably.

In Wisconsin, the court may order an appraisal of certain assets or use a forensic accountant to assess the value of a business or hidden assets. This is particularly important when one spouse may be hiding assets or undervaluing certain property in order to minimize what they have to divide.

6. Watch Out for Hidden Assets

Unfortunately, some individuals attempt to hide assets during divorce proceedings in order to avoid dividing them. This can take many forms, such as hiding bank accounts, underreporting income, or devaluing property.

If you suspect that your spouse may be hiding assets, it's important to address these concerns with your attorney. A skilled family law lawyer at Everson Law Firm can help uncover hidden assets and ensure they are fairly accounted for in the division process. Forensic accountants and private investigators may also be utilized to uncover hidden assets or income.

7. Understand Alimony and Support Payments

While alimony (also known as spousal maintenance) is not guaranteed in every divorce, it can impact how assets are divided. In Wisconsin, the court may award alimony based on factors such as the length of the marriage, the financial needs of the spouse requesting support, and the ability of the other spouse to pay.

Dividing assets in a divorce is not only about physical property but also ensuring that both parties' future financial stability is considered. If you are entitled to alimony, it's crucial to understand how this might affect your post-divorce finances and how the assets will be divided to ensure fairness.

8. Work Towards an Amicable Settlement

While divorce can be contentious, negotiating a settlement rather than going to trial is often a more favorable approach to asset protection. By negotiating a fair division of assets, you can avoid the uncertainty and potential costs of a lengthy court battle. Mediation or collaborative divorce processes can be especially useful in finding common ground and ensuring that both parties are satisfied with the outcome.

Conclusion

Divorce is undeniably difficult, but with careful planning and knowledge of Wisconsin’s family laws, you can protect your assets and move forward with confidence. By understanding your rights, maintaining thorough records, and seeking legal counsel early, you can navigate the financial complexities of divorce and work towards an equitable settlement. 

If you’re in the process of getting divorced in Wisconsin, it’s important to consult with an experienced family law attorney who can guide you through the process and help ensure that your assets are properly protected. Contact Everson Law Firm to set up a free consultation with one of our family law attorneys.