It isn’t unusual for individuals to seek asset protection in the form of a prenuptial agreement before saying, “I do.” However, prenups may not entirely be reliable if the marriage comes to an end as they are often contested, and the fees involved in a contested prenup can be costly. A Domestic Asset Protection Trust (DAPT) is a viable option for those wanting to safeguard their assets and it may also be a good way to gain additional protection.
How it Works
A DAPT is an irrevocable trust set forth by individuals and families who want to shield assets such as money, stocks, bonds, and mutual funds from creditors or divorcing spouses. What this means is that the trust creator has no control over the assets involved. Anyone looking to collect on claims also has no control over the assets in the trust. The trust creator can still be a discretionary beneficiary while keeping his or her assets protected.
Combine a DAPT with a Prenup
For even greater asset protection, a DAPT can be coupled with a prenup if bringing the topic up for discussion before a marriage doesn’t make you uncomfortable. This goes for assets you bring into the marriage as well as any others acquired during the union, which also includes income. When combined, these two can provide individuals with comprehensive protection in the event of a divorce.
An Advanced Asset Protection Strategy
If you’re looking for a better alternative for retaining separate assets during and after a marriage without the need of an awkward prenup conversation, a DAPT might be your best bet. Individuals should consult with our divorce lawyers in McAllen who have the experience of helping couples form prenups and DAPTs before entering marriage.
Our attorneys can also advise you on other effective ways to protect your assets in the unfortunate event that you and your spouse decide to divorce. Contact us today to explore your options.