General Information

Asset protection in divorce: Tiger Woods Divorce

Elin Nordegren asked for the Divorce from Tiger Woods and file a law suit against him. And not only this but she also asked for half of the fortune of Tiger Woods against the court. Tiger woods is a world famous golf player and he has made whooping $ 600 Million of wealth during his life time.

And today his wife is asking for half of this fortune from him as a divorce settlement.

This can happen to anyone in this world. But have you ever think that why many rich people are protected against such kind of lawsuits? This is because Rich people don’t own anything by their own name.

Yes, This is true. The Best way to protect your wealth against divorce is that, you don’t own anything in your name. And Rich people do this by using the corporate structure. They don’t own anything in their own name but they own everything in the mane of their companies & Businesses. And according to the law, the Company is a separate entity and one can not claim the assets of the company in case of divorce.

There are several asset protection strategies that rich people use and one of those strategies is the power of corporate structure. Corporate structure is designed to protect the wealth of the rich people. But unfortunately, most of the people around this world don’t know that how to use the corporate structure in their favour to protect their wealth.

Let us understand something about Marital Property -

Marital property consists of all income and assets acquired by either spouse during the marriage, even if an asset is in one spouse's name. This marital property is subject to division between divorcing spouses. Distinct property, such as property owned prior to the marriage, your inheritance, and gifts are excluded from marital property; these types of property remain non-marital property and are not divided at the time of divorce.

Individual property can lose its identity if mixed with marital property. For example, if you deposit your pay check into your premarital savings or investment account after marriage, then that account is considered marital property. The same may happen with inheritance property, like a joint account with your spouse. If you wish to have your partner's name on the deed and keep your entire equity or a particular portion of that equity, you should both sign an accord stating who possesses what piece of the property. Without an agreement, it will be treated as marital property and divided at the time of divorce.

I Hope this much Information is useful to you and will help you to structure your finances and protect your assets in any uneventful event.