It’s common knowledge that the divorce rate in Southern California and the rest of America is high, and with the high divorce rate comes couples who are waiting until later in life to enter into a marriage. Today’s couples often marry after they have already established their career and acquired assets such as a vehicle, a home and bank accounts. Considering these assets, property division during a divorce can be complicated.
Law experts recommend that married couples keep their own separate money in case of a divorce. Called a “secret fund,” the money would provide a cushion for the legal costs of a divorce and also protect assets acquired prior to a marriage. Experts note, however, that property or possessions obtained during the marriage will be considered communal marital property during divorce proceedings and should not be placed in a secret fund.
There are pros and cons to this type of fund. Keeping secrets can be the final blow to an already shaky marriage, but the peace of mind that comes from financial security may be invaluable to individuals, especially those who may not be the primary breadwinner in the relationship. Secret funds may also benefit couples in a happy, fulfilling marriage by providing both individuals with a sense of financial independence.
The impact of divorce can throw a once secure life into a state of uncertainty. Individuals going through a divorce may suddenly feel overwhelmed with both the monetary and emotional change. Those who feel a need for security in case of complex property division following a divorce or during a marriage can consult a qualified attorney.
Source: Forbes, “Pros And Cons Of Keeping A Secret Fund In Case You Divorce,” Jeff Landers, Feb. 14, 2013