asset protection Archives | Cordell & Cordell

Joe Cordell On Asset Protection In Cohabiting Relationships

st-louis-post-dispatchWith the decline in marriage rates, and subsequently divorce rates, related to economic factors, more couples are cohabiting as they delay marriage.

But since many states do not recognize “common law marriage,” cohabiting partners are left with little protection in the event of a breakup, Cordell & Cordell co-founder Joseph Cordell told the St. Louis Post-Dispatch.

As Cordell explains, the law treats ex-lovers like business partners dissolving their company: the only thing that matters is what’s on paper.

So if the girlfriend solely owns the house, it does not matter if the boyfriend helped pay the mortgage if there wasn’t a contract listing him as joint owner. He would have no claim to any equity since oral agreements aren’t enforceable in real estate.

Cordell said cohabiting partners could protect themselves through separate contracts, sometimes called “cohabitation agreements.” But this type of asset protection is complicated and requires a family law attorney’s assistance.

Read the full St. Louis Post-Dispatch article on asset protection.

Belleville News-Democrat Features Cordell & Cordell Asset Protection

The Belleville News-Democrat took the launch of Cordell & Cordell’s new asset protection services as an opportunity to feature the country’s largest domestic litigation law firm.

With more than 20 years of service exclusively representing men in family law matter, Cordell & Cordell is looking to further assist guys going through divorce by offering affordable, effective asset protection.

Cordell told the newspaper that the move is a natural direction for the firm to take to further enhance its services.

“Then, we can help those and it gives us opportunities to become more involved with these guys’ lives in advance of litigation and have time to plan to eliminate or mitigate those threats,” Cordell said. “It greatly diminishes the risk.”

Belleville Divorce Lawyer Richard Coffee stressed the importance of proactively protecting your property.

“Unfortunately, legal planning is not one of the things people want to put on that list of things to do, unlike medical or financial planning, which has immediate benefits or some clear consequences,” Coffee told the newspaper. “Legal plans gets pushed aside until something comes up, and often it is too late to do something.”

The firm is currently only offering asset protection in the St. Louis market.

St. Louis Post-Dispatch Interviews Joe Cordell and Richard Coffee About Asset Protection

Joseph Cordell The majority of people begin to consider asset protection planning only after being served with a lawsuit, but by then, it is already too late to shield your assets.

Insurance, trusts, incorporation and retirement accounts can protect you from poverty if you’re sued.

St. Louis Post-Dispatch business columnist Jim Gallagher interviewed Cordell & Cordell co-founder Joseph Cordell and Belleville Divorce Lawyer Richard Coffee about the law firm’s new asset protection business and “Keeping Judgment Hounds At Bay.”

“We’ve been protecting guys’ assets from arguably the greatest menace that might exist out there,” Cordell told Gallagher. He meant their wives.

Now Cordell & Cordell is expanding the practice to help guys protect themselves from other threats – namely lawyers waving judgments.

Read the full article on St. Louis asset protection.

And remember, to secure all that you’ve worked so hard to achieve, Cordell & Cordell now offers asset protection services in St. Louis to safeguard your financial future.

Call 314.725.0000 Or Email Us To Set Up An Appointment

The effect of a divorce on a business

A divorce will likely affect a business, as the split may lead to a division of assets or could cause an increased level of stress for an owner or executive of a small company if their spouse holds a share of the firm.

Despite a Forbes report that outlined how Kim Kardashian’s divorce may actually help her business, due to the fact that her life will be more exciting as she looks for a new man, non-celebrities may suffer because of a split with their former lover.

In an interview with the National Federation of Independent Business, Alan Schacter, a certified public accountant for Citrin Cooperman, noted that a split can lead to economic problems for individuals if they are not able to remove hostilities with their ex-spouse if an asset division is required.

“You need to put personal differences aside to preserve the asset,” Schacter told the news source. “This is an emotionally charged process. Everyone wants to do it peacefully.”

According to the NFIB, the general rule is splitting business equity “50/50” and each spouse will likely retain an equal share of the assets.

Protecting a business during a divorce

The process of divorcing a spouse can often take more than an emotional toll on the individuals who are involved, as assets can get tied up between the spouses during the split, hurting a business if one exists.

Forbes provided an example with what could happen to a business during a divorce.

According to the news source, if a business is worth $6 million prior to marriage and is worth $12 million following the split, the former spouse of the owner could be entitled to half or more of the $6 million appreciation that occurred while the two individuals were together.

This asset division that favors the former spouse instead of the business owner can be prevented by the use of a marriage contract or a prenuptial agreement.

Forbes reported that a proper contract that is signed at the beginning of a marriage can prevent the $6 million appreciation from going to the spouse who doesn’t have any ownership, as the pre-marital property does retain its character during the marriage due to the right legal documents.

This may be a wise move, considering the divorce rate is 41 percent for first marriages in the U.S., according to Divorcerate.org.