Car accidents are more often than not a stressful event for everyone involved. The consequences of a crash can lead to physical, emotional and financial damage. If you or your spouse are involved in a car accident, it can also impact your marital assets, especially if you are going through a divorce. There are various circumstances of the accident and divorce proceedings that will determine how it can or will affect your assets.
Who Is Liable?
In many states, marital assets are subject to division in a divorce. This means that even if the car accident occurs before the divorce is finalized, the damages and any compensation received as a result may still be considered marital property. If this is the case, then any settlement or compensation received by your spouse would be subject to division between you both, along with any other marital assets.This is particularly true if your spouse does not have enough insurance to cover the damages they caused, as the injured party may then seek compensation from your joint assets.
However, in general, if the spouse that caused the accident is the one seeking a divorce their individual assets are at higher risk. This is because the other party may be able to argue that the spouse’s reckless or negligent behavior led to the accident, which could result in them being held liable for any damages or injuries caused.
What Can Protect Your Assets?
One way to protect your assets in the event of a car accident is to make sure that you and your spouse have adequate insurance coverage. This can help ensure that any damages and injuries caused by a car accident are covered by insurance, rather than by your joint assets. If you are concerned about the amount of insurance coverage you and your spouse have, you may want to consider increasing your coverage or purchasing an umbrella policy to provide additional protection.
Another way to protect your assets is to consider a prenuptial agreement. A prenuptial agreement is a legal document that outlines how assets will be divided in the event of a divorce. If you and your spouse have a prenuptial agreement in place, it can help ensure that your assets are protected in the event of a car accident or other unexpected event. This is because a prenuptial agreement can provide clear guidelines for how the assets should be divided, regardless of the circumstances surrounding the accident.
How To Take Action
Seeking an attorney is often advised for car accident proceedings, however, it is advantageous to hire one if you are in the middle of a divorce. Every car accident and divorce case is different, so it is likely you will not know the full scope or timeline until you discuss with an experienced lawyer.
According to experienced divorce attorneys at The Law Offices of Stephen Vertucci, there are many items to discuss that could determine how long it’ll take for the divorce to finalize. Many states have a waiting policy to ensure that divorce is what the couple wants. Property division, child custody, child support and spousal maintenance are all scopes of a divorce that need to be either agreed on by the couple or decided by a judge. A qualified attorney can review your situation and provide guidance on how to protect your assets in the event of a car accident or other unexpected event. They can also help you understand your legal rights and obligations, as well as the potential impact of a car accident on your marital assets.
Meg is an author at Cinnamon Hollow. She writes on a variety of topics sharing tips and ideas for daily life.
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