How to Protect Your Assets Before Major Life Changes

Any time you have to check multiple aspects of your credit, get help from a professional, and move your life around, it can cause large amount of stress and confusion. You’re focused on the future, the plans, and everything you’re building next. Legal documents and the need to protect your assets often fall to the bottom of the list, not because they aren’t important, but because they don’t feel urgent in the moment.

Protecting your assets before these milestones is not about expecting the worst. Instead, it’s about planning responsibly to preserve your financial security. Understanding how asset protection works can help you make informed decisions that align with your long-term goals.

Why Asset Protection Matters

When you combine your financial life with another person, whether through marriage or shared investments, your individual assets may become subject to shared ownership rules under state law. Without clear legal guidance, what you brought into a relationship or built on your own could end up treated as marital or joint property. This can have implications for your financial stability and future opportunities.

Prenuptial Agreements

A prenuptial agreement (prenup) is probably a common legal asset protection tool that you’ve heard of before. It is easily described as a contract couples create before marriage to define how assets and debts will be handled during the marriage and in the event of a divorce. Despite lingering misconceptions, prenups are increasingly viewed as a sensible financial planning tool rather than a pessimistic bet against the future.

In fact, a 2022 survey shows that about 15% of married or engaged individuals in the United States have prenuptial agreements, up from just a few percent a decade ago, reflecting their growing acceptance as part of financial planning before marriage. (X)

Prenups can:

• Protect separate property such as real estate, investments, or business interests owned before marriage.
• Define financial responsibilities, including how future earnings, debts, and property will be treated.
• Offer clarity and reduce conflict in situations where assets are complex or significant.

The value of a prenup goes beyond wealth preservation. It encourages open communication about finances early in your relationship and can prevent misunderstandings and financial abuse.

Estate Planning

While prenuptial agreements address financial arrangements tied to marriage, estate planning focuses on what happens to your assets in the event of incapacity or death. A solid estate plan ensures your property is distributed according to your wishes and can minimize taxes, legal costs, and family disputes.

Key components of estate planning include:

• Wills and trusts to define how your assets should be distributed, including provisions for minor children or beneficiaries with special needs.
• Durable and Healthcare powers of attorney for appointing someone to manage financial or healthcare decisions if you are unable to do so.
• Beneficiary designations designed to ensure retirement accounts and insurance policies transfer as intended.

Estate planning also complements prenuptial agreements. For example, if one spouse owns a business or property, a carefully crafted estate plan can work alongside a prenup to secure both partner’s interests and intentions over the long term.

Protect Your Assets and Finances Before Big Purchases

Buying a home, starting a business, or making other significant investments can also affect your asset protection strategy. Title arrangements, ownership structures, and debt allocations should be reviewed with legal counsel. This is to reduce exposure to risk and ensure your investments are structured to protect what you’ve worked to build.

Get Legal Guidance from Grand Strand Law Group

Protecting your assets is not a one-size-fits-all process. Laws vary by state, and each person’s financial situation is unique. Whether you’re planning a wedding, buying property, or updating your estate plan, Grand Strand Law Group can help you navigate the legal tools available and put the right protections in place.

We are here to guide you through every step of the process, making planning your future in Myrtle Beach smooth and easy. Give us a call at 843.492.5422. Learn about how we can help with estate planning now or in the future.