DIVORCE PLANNING: How to legally rid yourself of assets prior to divorce

DIVORCE PLANNING: How to legally rid yourself of assets prior to divorce
Crime SceneI was reading the Wall Street Journal tonight and this article about Tiger woods was interesting to say the least. Got me to thinking of the issue of his endorsements. I’ve already blogged about how his behavior could be viewed as  a dissipation of marital assets here. But then, my mind was working over time and I wondered, “hey, could a person legally rid themselves of assets as a form of “divorce planning?” Sure, folks have tried to rid themselves of assets prior to divorce and claim bankruptcy. But that has usually resulted in criminal charges of fraud since the riddance was due to some illegal activity, example, conveying property into someone else’s name, like a friend, and filing bankruptcy. Or hiding them in foreign jurisdictions in offshore bank accounts by secret electronic transfers. This stuff is illegal.
But can this be done legally? I would think one way is to deed or devise it in trust to a philanthropic institution or a not for profit institution. I can’t think of any other way. If you can, be sure to write in and let me know. I mean, you can always have an affair like Tiger Woods and then lose your endorsement deals which are the main source of your net worth. Adultery is not a crime in Florida like it is in New York. At least I don’t think so. So if you lose these deals due to your behavior, there is nothing technically illegal about that. Sure, you can be brought up on dissipation charges if there is no prenup. But that is a risky way to do it. I think the only way is to deed the money to a philanthropy and place it in an irrevocable trust with you as sole trustee. That might work. But don’t quote me on this one as I’ve never actually pulled a whammy like this. And prepare for your spouse to argue that the conveyance is a “dissipation” depending on how close to the divorce filing you do it.
Please check out our youtube videos (a couple on Tiger) here www.youtube.com/divorcesaloon
Image credit: