Asset Protection Attorney in Orange County, CA

Protecting Your Financial Future

As an individual establishes their financial well-being, one of their chief concerns is how to protect their assets. This typically is a straightforward process, but this can quickly change due to marriage and divorce. California is a community property state. This means there’s a legal presumption that all personal assets acquired during a marriage—along with debts—should be equally divided among parties during divorce proceedings. While this may not seem complex on the surface, you should still have an asset protection plan during the dissolution of a marriage. Failure to create such a plan can have unintended consequences—including the loss of property that should be rightfully yours.

In addition to possible exceptions under the law, the possibility that one spouse could be hiding money or property exists. This is why anyone going through a divorce should discuss their situation with an asset protection attorney. Doing so will help you better understand your unique situation and the best way to move forward. Attorney Patrick O’Kennedy has handled thousands of family law cases—including those where asset protection strategies were integral—over the past two decades.

Schedule a consultation with our law offices today so you can have a firm grasp on your situation and ensure you get what you deserve.

How Are Assets Divided in California Courts?

During a California divorce, the legal presumption is that assets acquired and debts incurred from the date of marriage to the date of separation are community assets and debts. Conversely, assets acquired and debts incurred prior to the date of marriage or after the date of separation are presumed to be separate assets and debts. There are some exceptions that can make this process more complicated, but many divorces are simple in this regard. This is especially the case when there are no major assets or special circumstances involved—such as irrevocable life insurance trusts or high-value assets—that may require special considerations.

Gifts And Inheritances

However, assets that were an inheritance or gift to one spouse often qualify as exceptions to community property laws in the California legal system. There are also instances where one spouse has made a contribution from their separate property to the community estate that requires reimbursement. The existence of such exceptions makes it clear that a divorce in the Golden State isn’t always as straightforward as it may seem when it comes to asset protection. Even in uncontested divorces where the two parties remain amicable, getting help from asset protection attorneys can help ensure things go smoothly and that everyone receives what they’re legally entitled to.

How Can I Create an Asset Protection Plan?

Without legal representation, you could get “taken to the cleaners” during your divorce. An attorney can help identify assets you may have potential claims to through the discovery process. Still, having a plan to protect your assets should be a primary concern.

What To Consider When Creating An Asset Protection Plan

Here are just a few considerations to account for when creating such a plan:

• Consider signing a prenup prior to getting married
• Get copies of your spouse’s financial statements if possible
• Avoid placing gifts and inheritances into shared accounts
• Consider financial planning techniques that can lower the value of an asset
• Keep track of recent tax changes
• Remember that Chapter 7 bankruptcy is an option if your debts are too overwhelming

Do I Need an Asset Protection Attorney?

If you’re wondering whether you need an attorney to protect your assets during a divorce, consider this: people often know less than they think about marital assets and debts. Studies show that one-third of Americans with joint finances admit to lying about money, while another third say they’ve been lied to. This hidden financial activity can undermine even the best asset protection strategies. Without all the relevant facts, protecting your assets becomes much harder.

This is why consulting an attorney with asset protection experience is essential. Many people underestimate how easily a spouse can hide assets, often without realizing it’s a criminal act. Common methods include undervalued purchases, stashing cash in undisclosed locations, underreporting income, overpaying creditors or the IRS with plans to claim refunds post-divorce, and creating fake debt with friends or family. Additional tactics may involve setting up accounts in others’ names, deferring income, creating asset protection trusts, cashing out life insurance policies, and transferring stock to others.

During a divorce, each spouse has a duty to disclose all financial information. However, hidden assets can go unnoticed, reducing your fair share. Even if you think it’s hard for your spouse to conceal funds, options exist. For example, someone could take cash out during a grocery store visit, making it appear as a typical expense on bank statements.

Contact an Asset Protection Lawyer in Orange County, CA Today

No one enjoys going through a divorce, and this often leads both parties to try to simplify the process as much as possible. Unfortunately, this can sometimes prove detrimental. Asset protection planning is rarely something people consider when entering a new relationship, but when ending such a relationship, it becomes more important than ever. Having an attorney on your side will help protect your assets, and if your soon-to-be-former spouse has hidden assets—either unknowingly or purposefully—an experienced legal representative can access confidential or sensitive information through the discovery process.

Contact an asset protection attorney you can depend on today. Schedule a consultation at the Law Office of Patrick O’Kennedy by calling (714) 919-1855. We’re ready to help.