How To Protect Yourself In A Divorce Using a Domestic Asset
Movies have taught many of us that love is eternal and that all marriages are of the “And they lived happily ever after” kind. The reality is different, though.
Many marriages end up in divorce and one of the worst things about this break-up – apart from itself – is the point when the 2 former partners have to divide the assets. In nightmarish cases, one partner can get them all while the 2nd one is left with sheer nothing.
If you are in this awkward position, it will definitely help to know some asset protection strategies, one especially: the DAPT – Domestic Asset Protection Trust. Let’s take a quick look at what this is.
The DAPT & How It Works
Simply put, the DAPT is a trust you can transfer assets to. This trust is irrevocable, which means that no creditor will be able to get his hands on the assets you’ve transferred into it.
In the past, people who wanted to save certain assets had to transfer them offshore or to trusts established in jurisdictions that creditors had no power whatsoever in. Nowadays, you won’t need to do that.
All it takes for you to create a DAPT is to go to a law firm that specializes in strategies of protecting one’s assets. The DAPT not only protects some of the assets you deem as most valuable, but it allows you to keep all of them in the U.S.
What Can I Transfer Into A DAPT?
A DAPT will generally safeguard property, personal belongings and money. The thing is, you should open a DAPT before the divorce is through. If your marriage is going south and you can feel it months before either you or your partner files for divorce, open a DAPT as quickly as you can.
The DAPT is efficient, but sadly, it’s really difficult to say when a divorce is incoming unless the person that’s filing for it is you. Opening a DAPT isn’t a 2-day business. It takes a lot of time and a lot of paperwork.
Plus, such a trust costs upwards of $2.000, depending on what state you live in.
Some Precautions
DAPTs are not legal throughout the U.S. In some states, (California, just to give you an example) moving one’s assets out of the state is illegal. Make sure that you are familiar with the legislation before you start looking for a law firm.
If you’re living in a state in which the DAPT is illegal, your chances of finding a law firm that provides DAPTs are close to 0 anyway.
Concluding Remarks
Divorces aren’t pretty. They deal some unbelievable emotional and material damage. If you’re going through one at the moment and there’s still time until it’s finalized, make haste and open a DAPT.
Transfer all your valuable assets to it, including your property, and creditors won’t be able to do a single thing to get them. Once again – ensure that you’re not breaking the law in your quest for asset protection.
