Unfortunately, most women who go through a divorce end up financially worse. Even with property division, spousal support and child support, it may take a long time before these ex-wives get back on their feet financially. However, this scenario is not the only one pertaining to women.
Many women who work earn more than their husbands or are even the only breadwinner in the family. If this applies to you, then you need to know the right approach for this situation to protect your assets in the event of a divorce.
Create a postnup
Perhaps you do not have a prenuptial agreement or it does not reflect your current circumstances. In either case, you should consider creating a postnuptial agreement to determine marital property and its distribution. Otherwise, if you cannot agree on the terms, they will be subject to Michigan law on asset division.
Make sure your finances are in order
You may make more money, but that does not mean everything will be smooth sailing after a divorce. Maintain your own credit score and bank account. However, do not hide assets from your spouse, as there are penalties for this in divorce proceedings, including making the process longer and costlier. Also, remember that any debt you have jointly is both your responsibilities.
Protect your business
If you have your own business, the earnings and value it has gained during the marriage also belong to your husband even if you started the company before marriage and/or he has no involvement in it. Unfortunately, most protective measures must be in place years before, such as a prenup or trust. However, this is another area where a postnup can be beneficial. In addition, keep family finances separate from that of the business, and remove your husband from any involvement in the company. You may also have the option of sacrificing other assets or buying out his share to keep full ownership of your business.