Ask most people to guess what the biggest risk they need to asset protect themselves against and they will usually guess either being sued or paying too much tax.

Asset protection is a crucial part of wealth building. There are many different aspects of asset protection and they often involve complex trust structures. Yet most people ignore the number one cause of financial loss, even though it is easy to protect them.

Both of these are important and every wise business person structures their business with the aim of minimizing these two risks, but there is a bigger risk than those two put together.

The risk of losing big time financially in a divorce can be minimized by having a sound prenuptial agreement yet many otherwise canny business owners fail to take this sensible step and end up losing far more money that they needed to.

Much of the money lost in a divorce isn’t just going to your ex-spouse; it is going into the pockets of lawyers. There is no financial incentive for lawyers on either side to come to a quick settlement. They are getting paid while the parties are fighting.

A lot of this financial and emotional loss could be avoided if couples took an example from business.

A golden rule in business is to never enter into a joint venture unless you have a formally documented and signed exit strategy. There are two reasons for this.

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Firstly, you are much more likely to agree on a reasonable exit strategy while you are all friends and positive about the joint venture.

The second reason is that anyone who won’t negotiate a sensible exit strategy before the joint venture starts is likely to be a nightmare as a business partner and so you can take the warning and not enter into a joint venture with that particular party.

Marriage is also a joint venture but love often distracts us from seeing this reality!

The statistics tell us that around 50% of American marriages end in divorce yet the number of marriages with prenups is estimated as between 5% and 10%. In other countries where the divorce rates are similar the rate of prenups is dramatically lower.

Why is the rate of prenuptial so low?

One common reason is blind optimism. A few years ago Harvard Law School conducted a study to see how couples about to enter marriage rated their own chance of divorce. This study showed that the average couple rates the chance of their marriage ending in divorce as 11.7% whereas the real chance is almost 5 times that.

Business joint ventures are started with optimism as well but they still have soundly documented exit strategies. There is no reason for a marriage to be any different.

Another reason that so few marriages have prenups is that they think that they don’t have anything to lose. This may be true at the time that they are entering marriage but at the time they are divorcing they may have a lot to fight over and no agreed ground rules.

Perhaps the two most common reasons people don’t have prenups are the two biggest enemies of investors and entrepreneurs, fear and ignorance. Some people simply never think of a prenup and others think about it a lot but are too afraid of how their betrothed might react if they were to raise the matter with them.

Please be clear that I am not offering legal advice here but I am suggesting that anyone who plans to become financially successful should also seek sound legal advice about the protection they could gain from a prenuptial agreement.

The initial exchange gave way to a group of merchants who banned together to form the New York Stock Exchange. This initial assembly of men met every day on Wall Street to trade their stocks and bonds – an outdoor ritual that lasted through to the early 1900s, when commerce moved indoors. Today, investment on this scale has come full circle – operating outside the bricks and mortar of traditional trading. Today’s investors operate en masse through the Internet, buying and selling stocks online with the click of a mouse.

Buying and selling stocks online has become the new way of investing. In this chaotic world of long work hours combined with the juggling of frenzied family schedules, the computer has taken an ever-increasing role – giving us a place to work, communicate, and be entertained any time of day from the comfort of our homes. The computer has also taken an ever-increasing role in investing, offering consumers the opportunity to trade online. Several reputable companies have pioneered the online investment arena where they have kept pace with the changing needs of today’s modern investors.

In accessing stocks online, investors have been given access to a bevy of services previously only obtained through visiting brokers in the brick and mortar world of finance. Online investment through reputable brokerage companies requires investors to set up an account through the website. They can then access their financial portfolio at the touch of a mouse. Additionally, these companies will offer up-to-the-minute stock quotes, historical performance and forecasts for each stock, as well as in-depth information about each of the companies.

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Investors report that the ability to trade stocks online offers many benefits not provided through traditional brokering. First and foremost, online investment offers lower brokerage fees than required through traditional brokerage houses. Through online trading, investors typically pay $10 and under per trade. Online trading also affords investors a level of independence and control not previously experienced through traditional trading. Investors can pick and choose stocks online that meet their own personal financial goals.

Using the tools provided through the brokerage websites, investors can research those companies and stock in which they are interested. Further, investors can access their portfolio to keep careful track of their financial status as they move towards the goals they have set out for themselves.

Part of what keeps the financial world moving at a pace that continues to stimulate economy and promote business is its ability to adjust to changing conditions in society. Online trading is simply a response to what is happening in the world of finance on a grander scale. The ability to buy and sell stocks online meets investors where they are in today’s world and gives them the opportunity to take a greater role in their own financial future.

When your marriage breaks up, the last thing you feel like doing is crunching numbers. You’re hurt, perhaps angry, and possibly overwhelmed with anxiety, fear and despair. You’re focused on the past and present, not the future. But as many divorced couples learn the hard way, this is precisely the time you need to get a grip and pay close attention to your assets and your financial future, lest both slip away in the flood of emotion.
First and foremost, it’s a business deal. That means you’ve got to get rid of your emotion any way you need to, whether through therapy or going to a gym. Because your divorce should be based on one thing: your property settlement. It’s a matter of numbers, that’s all it is. At least 80 percent of money is about self-management, about emotions, and 20 percent is about quantifying and computing, the counting part is easy; it’s the emotional part that’s hard. Since money is a major cause of divorce, it’s safe to assume that splitting the financial sheets won’t be easy.

Pull your credit report before the divorce so that anything in dispute can be resolved before the divorce is final. The reports are the quickest and easiest way to get an overview of outstanding loan balances, mortgages and credit card debt that you and your spouse will eventually divvy up.

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Open individual bank, credit card and brokerage accounts. You also need to do this before the breakup is official. It will be easier to get a credit card and bank account in your own name while you are still married and share joint assets and debt on credit cards, mortgages and loans. This is especially important for women who have never established credit in their own name. A divorce can take time. To avoid acquiring additional joint debt (or suddenly losing shared bank assets) during the legal process, close your joint credit card and bank accounts. You will, however, still be jointly responsible for paying off the balance of the closed accounts.

The more you remain connected to your ex-spouse financially, the more you are at risk. If possible, pay off joint credit card balances by check from your individual bank accounts or through balance transfers to your individual credit card accounts. In a property-settlement agreement, couples often split their debt. What will happen is, one person declares bankruptcy down the road and the credit card companies come after the other. You might be better off each borrowing in your own name and each paying off the credit cards so that you come out of the marriage without any joint debt.

Keep separate property separate. Assets you brought to the marriage separately (real estate, vehicles, an inheritance, gifts, money you acquired before marriage, etc.) are yours to take away from the marriage. But if you put any separate assets into a joint account, they may be considered joint property and will be divided depending on the property laws where you reside.

Traditionally, women tend to hold onto the family home at all cost. Unfortunately, it’s often an emotional decision that makes poor financial sense. Studies say that women will keep the house and give up the retirement money.

I recommend that they look seriously at selling that house, even though it’s hard. It’s an emotional tie that ends up strangling the woman. She ends up losing it anyway, and she has given up her retirement money. I ask women to just think a little bigger. Change those beneficiaries.Despite what your divorce decrees, if you don’t change the beneficiaries your ex could have an unexpected windfall in the event of your untimely demise. As long as you’re at it, this is a good time to review your various policies to make sure they fit with your new circumstances. And don’t forget to delete your ex-spouse from these documents and policies and change your marital status where applicable.

Reclaim your name. For some women, divorce adds another task: reclaiming your name. If you are reverting to your maiden name, you may be required to produce the divorce decree or document signed by your ex-husband that acknowledges your new name in order to obtain a new driver’s license, passport or other identification. Don’t forget to register your name change and other tax forms and with the Social Security Administration. Check your retirement.

Guard your health coverage. Sadly, divorce often forces one party to sacrifice health care coverage. Don’t let this happen to you

Most importantly, remember that living well is possible whatever your net worth or marital status.