FORT LAUDERDALE, Fla., Sept. 12, 2016 /PRNewswire/ -- Let's face it: it's not easy to ask for a prenuptial agreement when you're about to get married. Future spouses may wrongly assume it's a statement of distrust.
Attorney Josh Bennett says avoiding a fight isn't the only reason you may want to forgo a prenuptial agreement. Bennett explains, "A prenuptial agreement requires full financial disclosure. Even couples ready to completely share their lives with each other are uncomfortable sharing every aspect of their finances with each other or anyone."
This isn't the only reason Bennett advises setting up an APT instead of a prenuptial agreement.
"Prenuptial agreements can be challenged and deemed invalid by a judge come the event of divorce," explains Bennett.
With over half of all marriages ending in divorce, it would be foolish to not take measures to protect assets before tying the knot. So what's the alternative?
Asset protection trusts (APTs) offer an alternative for future spouses looking to protect their assets in the event of a divorce in the future. These can be set up without your spouse even knowing about it. What an APT does is transfer control of your assets to the trustees you appoint. You can then appoint yourself a beneficiary of your trust so you can continue to access your wealth indirectly without being in control of it. That way, your wealth will be safe from creditors, lawsuits, and possible future ex-spouses.
There are several complexities when it comes to setting up APT. First, make sure the trust is set up in a state that offers irrevocable trust options. Nevada is considered the best state to set up an APT in because there is no state income tax, no obligation to child support, spouses, or exception creditors when it comes to your entrusted wealth, no affidavit of solvency required, and low statute of limitations for creditors to come after you.
Second, make sure that your APT has a spendthrift clause. This ensures that you will remain a beneficiary of your trust by restricting the ability to transfer your interest in the trust.
Third, it is important that you set up your APT before the engagement. Prenuptial agreements are often contested and can be deemed invalid. An APT can hold up against this contestation if you set it up before anticipating a marriage. If you wait until someone comes after your money to set up an APT, it will be seen as fraudulent conveyance.
To discuss how to best safeguard your assets without a prenuptial agreement – and without your future spouse even having to know about it – contact Josh Bennett at (954) 779-1661 or Email or visit www.joshbennett.com.
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SOURCE Josh Bennett