In this blog post, we will explore the concept of a pre-distribution of assets, why it can be beneficial to obtain one, and the steps involved in securing such an agreement.
What is a Pre-Distribution of Assets?
A pre-distribution of assets is a legal agreement between the parties involved in a divorce that determines how their assets will be divided before the divorce is finalized. This agreement typically outlines the property, investments, and other assets each party will receive after the divorce, making it easier to settle disputes over asset distribution.
Why Get a Pre-Distribution of Assets?
There are several reasons why it can be beneficial to get a pre-distribution of assets during a divorce. Let’s take a closer look at some of them.
- If one spouse doesn’t have adequate income to support their living expenses during the divorce, obtaining a pre-distribution of assets can be a critical step in ensuring their financial stability. The pre-distribution agreement can provide the spouse with the necessary assets to cover their living expenses until the divorce is finalized and a long-term financial plan is put in place. This can help alleviate the stress and anxiety associated with financial insecurity during a divorce and ensure that both parties are in a stable financial position when the divorce is finalized.
- Speeds Up the Divorce Process: A pre-distribution of assets can significantly reduce the time it takes to finalize a divorce. By agreeing on how assets will be distributed before the divorce is finalized, the parties involved can avoid lengthy court battles over asset distribution.
- Reduces Stress and Anxiety: Divorce can be a stressful and emotionally taxing process. By arranging for a pre-distribution of assets, the parties involved can reduce the stress and anxiety associated with the process by avoiding disputes over asset distribution.
- Provides Certainty and Control: A pre-distribution of assets gives the parties involved greater control over how their assets are divided. This can provide a greater sense of certainty and security during the divorce process.
- Protects Interests: By agreeing on a pre-distribution of assets, the parties involved can protect their individual interests. This can include safeguarding personal assets, investments, and businesses.
How to Get a Pre-Distribution of Assets During a Divorce
If you have decided that a pre-distribution of assets is the right choice for you, the next step is to obtain one. Here are the steps you need to follow.
Hire a Lawyer
The first step in obtaining a pre-distribution of assets during a divorce is to hire a lawyer. A lawyer can help you navigate the legal process and ensure that your interests are protected. They can also help you draft a pre-distribution agreement that is tailored to your specific needs and preferences.
Identify Assets to be Distributed
Once you have hired a lawyer, you will need to identify the assets to be distributed. This can include property, investments, businesses, and other assets. It is essential to ensure that all assets are identified and accounted for to avoid disputes later on.
Negotiate Terms
Once you have identified the assets to be distributed, you will need to negotiate the terms of the pre-distribution agreement with your spouse. This can be a challenging process, especially if there are disagreements about how assets should be divided. However, a lawyer can help you negotiate terms that are fair and equitable for both parties.
Draft and Sign the Agreement
Once you have negotiated the terms of the pre-distribution agreement, your lawyer will draft the document. Both parties will then need to review and sign the agreement. It is essential to ensure that both parties understand the terms of the agreement and that they are signing it voluntarily.
Submit the Agreement to the Court
After the pre-distribution agreement has been signed, it will need to be submitted to the court for approval. This will ensure that it is legally binding and enforceable. The court will review the agreement to ensure that it is fair and equitable for both parties. Once approved, the pre-distribution agreement becomes legally binding, and both parties will need to adhere to the terms outlined in the agreement.
Conclusion
In conclusion, obtaining a pre-distribution of assets can be a beneficial tool for couples going through a divorce. It can speed up the divorce process, reduce stress and anxiety, provide certainty and control, and protect individual interests.
However, obtaining a pre-distribution of assets can be a complicated process, and it is essential to hire a lawyer to ensure that your interests are protected. It is important to speak to a lawyer to discuss your options. A lawyer can help you navigate the legal process and ensure that you get the best possible outcome for your situation.
Remember, divorce is a difficult and emotional process, but with the right legal support and guidance, you can make it through this challenging time and come out the other side with a fair and equitable distribution of assets.
Opinions expressed are those of the author and are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
