Assets can become liabilities after divorce

On Behalf of | Oct 26, 2018 | High Asset Divorce |

Divorce is usually a messy emotional situation, but it can become especially contentious when disputes over large assets are involved. Many people feel they are entitled to the lion’s share of a marriage’s asset if it ends, and disagreements can turn toxic and last for years.

Prenuptial agreements can often help clear up divisions, although many couples have an aversion to considering the possible end of a marriage before it even begins. People who are bringing large assets to or are assuming large debts through marriage may want more legal protection.

One example is the possible consequences of losing credit or investments due to divorce. One public figure in Miami lost out with real estate investments during the recession of 2008 and is personally liable for foreclosure on a $2 million home loan taken out by her former husband.

She signed over the deed to her ex-spouse under the terms of the divorce, as he was going to pay the mortgage on it. But the legal liability remains with her after their divorce under Florida law, and she has no control over the assets either.

This situation may have been avoided with a prenuptial agreement or a different clarification in the divorce agreement. People who may experience a high-asset divorce can always give themselves peace of mind with some planning.

An attorney is often the best ally that a spouse can have while separating or divorcing, especially if a lot of money or real estate is involved. Legal representation can help reduce the risk of losing more than necessary during a divorce.