Summarizing learning's over the last 2 weeks (Thanks to TAM members who contributed in various threads), first lets revisit steps given on the first post to check validity of steps one needs to take to be financially separate after marriage, then listing out three critical steps needed
1) Reside in a non-community property state (if in the US); Update: Not relevant, most states are the same when it comes to asset split
2) Always marry a woman who has a job that can feed her (or man who can feed himself); Update: True both partners need to have an income, best way to take alimony off the table
3) Sign a well vetted prenup with presence of attorney; Update: CRITICAL
4) Do not buy a house, it is considered community property in most states, always rent and always pay portion of rent; Update: Good practice though steps explained later can provide protection
5) Always use separate bank/financial institutions to deposit any and every form of earning, ask wife to sign assignment of interest form from financial institution: Update: Good practice, not needed with pre-nup but reduces disputes
6) File taxes as married filing separately (is this needed? Yes): Update: Good practice
7) Regularly sign postnups after marriage (redundant step): Update: Not needed
8) Banks/financial institutions in your name should only have month or two of expenses, any and every investment $ to be invested through a gift to your parents or a trust (if you have the $$$$); Update : Not needed
9) Periodically sign inter-spousal transfer deeds with clear transmutation clause; Update: This is one of the three critical steps needed
10) Any remaining assets to be in non traceable form ex. gold, crypto, buried cash etc. Update: Use irrevocable trust to remove gifts and assets before marriage
NOW for the three critical steps needed to keep assets separate after marriage (Bookmark this, you will not find it anywhere else and moderator will likely remove, as it may bankrupt the divorce industry)
1) Prior to marriage,ask a family member, typically a parent to make you the beneficiary of an irrevocable trust. Put any and every asset you have acquired prior to marriage in the trust. All gifts and inheritance go into the trust. The trust should not pay you during marriage. By definition, a trust is not owned by you, so all assets including any asset appreciation are out of marital property by definition. You do not need to disclose a trust in the pre-nup or any time during divorce (unless asked to by the other party), this is equivalent to burying your money. You should have ZERO assets after this step, now you are ready to get married!!
2) Sign a simple pre-nup or post-nup: It should be simple, state that account 1 is separate property irrespective of funding source, account 2 is joint account to be used for household expenses, get it signed with legal representation from the other side. Do not include marital residence in pre-nup, include destitution clause (saying if divorce leaves one partner destitute, small amount like $10K to be given). Always include alimony waiver
3) For any large asset acquired using marital property (including primary residence) you wish to keep separate, ask spouse to sign inter-spousal transfer deed ( ISTD with a transmutation clause). A transmutation changes community property to separate property. One caveat, ISTD's come with the presumption that negatively impacted party was coerced into signing. So, its important to have language showing consent as well as understanding of impact.Always record ISTD's
All three steps are needed, if done properly there will not be any dispute.
