Financially Fearless: Protecting Your Assets During Life Transitions

Series: Financially Fearless - Legal Strategies for Women to Secure Their Future (Episode 3)

Host: Sidney Wheelan

Sponsor: The Wheelan Law Firm of Moberly, Missouri

Welcome to Law Days and Lattes! This episode focuses on protecting your assets during life transitions like marriage, divorce, and loss of a loved one. While geared towards women, the information is valuable for everyone. Life transitions, both joyful and difficult, can significantly impact finances. Being prepared is key to safeguarding your assets and future.

Why Life Transitions Require Financial Vigilance

Life transitions bring emotional and logistical changes that affect finances. Examples include:

• Divorce without a prenuptial agreement leading to financial strain.
• Unexpected loss of a partner resulting in lack of access to accounts or financial knowledge.
• Single mother's failure to name a guardian in her will, creating uncertainty for her children's future.

Legal Strategies for Different Life Transitions

Marriage:

• Prenuptial Agreements: Define asset and debt handling during marriage and divorce. Consider future potential assets.
• Postnuptial Agreements: Address new financial circumstances after marriage, such as inheritances or starting a business.
• Inherited Property (Missouri Specific): Inherited property is typically separate, not subject to division in divorce unless you commingle it with marital assets (e.g., adding spouse's name to a deed or account).

Divorce:

• Asset Inventory: List all marital and personal assets.
• Legal Representation: Hire an experienced divorce attorney.
• Retirement Accounts: Ensure proper division via a Qualified Domestic Relations Order (QDRO).
• Pro Tip: Consult with a divorce attorney before deciding to file. Understand your options and prepare financially.

Loss of a Partner:

• Estate Planning: Keep your will, trust, beneficiary designations, and durable powers of attorney (both business and healthcare) up-to-date.
• Access to Accounts: Ensure access to accounts for ongoing expenses. Consider trusts or payable-on-death designations.
• Life Insurance: Review coverage and beneficiary designations.

Key Legal Documents to Protect Your Assets

• Will: Designates asset distribution and names guardians for minor children. Does not avoid probate.
• Trust: Helps avoid probate and provides greater control over asset distribution. Revocable living trusts offer privacy, flexibility, and control.
• Powers of Attorney: Appoints someone to manage financial affairs if you become incapacitated.
• Durable Powers of Attorney for Healthcare: Ensures your medical wishes are honored.
• Beneficiary Designations: Keep updated for all accounts. Can sometimes transfer real estate.

Action Step: Review your legal documents or schedule a consultation with an attorney.

Building a Support System

• Legal Counsel: Work with an attorney specializing in relevant areas.
• Financial Advisor: Partner with a financial planner.
• Trusted Friends/Mentors: Seek advice from those who have navigated similar transitions.

Pro Tip: Build your support team before a crisis.

Real-Life Examples and Lessons

• Example 1: Divorce without a prenup can force the sale of a business. Lesson: A prenup protects business assets.
• Example 2: Loss of a partner without estate planning can lead to probate and stress. Lesson: A will and trust streamline the process.

Challenge

• Married couples: Discuss prenuptial or postnuptial agreements.
• Everyone: Review your will, trust, and beneficiary designations.

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WheelanLaw.com

This podcast episode contains general information for discussion purposes only. Each case is different and must be judged on its own merits. Missouri rules generally prohibit lawyers from advertising that they specialize in particular areas of the law.  This article should not be construed to suggest such specialization. Nothing on this site should be taken as legal advice for any individual case or situation.  This information is not intended to create an attorney-client relationship, and the listening or viewing of this podcast does not constitute an attorney-client relationship.  The choice of a lawyer is an important decision and should not be based solely upon advertisements.