Why Wealthy Women Should Keep Assets in Their Name

Because the stakes are so high for rich women, they should keep as many assets as possible in their name.

Why should they do so?  There are several reason:

1) If the loans and credit cards are in your spouse’s name, credit reporting companies may put your credit as inactive, meaning that your FICO score could plummet. This may not seem like a important now, but if you end up divorced or find youself suddently widowed, your problems are just beginning.

Let’s say that you and your husband lived in a $3 Million dollar home and the loan on it is for $2.4 Million.  By not being on the loan, your husband’s credit will benefit immensely from paying the loan on time over a period of years.  If he dies or you divorce,  your credit will not show this high credit amount and you won’t be in a position to buy comparative real estate without putting a substantial amount down.  In fact, your FICO score can drop drastically within 6 to 9 months if left dormant. 

Since one of the main keys in maintaining and growing one’s wealth is through the power of leveraging your money, that will not be an option for you for a long, long time.

The flip side of this story is if your husband has some expensive habits that you’re not aware of he can drage down your credit. Think that your picture perfect husband is above that?  You may be surprised.  Bill Bennett former drug czar under George H.W. Bush and author of “The Book of Virtues,” was discovered to have a gambling addiction.  How bad was his addiction?  Documents show that in one two-month period, Bennett wired more than $1.4 million to cover losses. When all this became public in 2003, do you think his wife had a clue about his gambling addiction?  Not a chance.

When pressed to comment on the reports of his gambling habits by Newsweek columnist and Washington Monthly contributing editor Jonathan Alter, Bennett like a good addict is prone to do, rationalized his addiction.  He admitted that he gambles but not that he has ended up behind. “I play fairly high stakes. I adhere to the law. I don’t play the ‘milk money.’ I don’t put my family at risk, and I don’t owe anyone anything.”

2) If for some reason you need access to your cash for an emergency of some sort but your husband’s assets have been frozen or garnished due to an IRS tax lien, civil litigation.  An old judgement that occured before you were married can come back and haunt you like a bad nightmare.  Depending on the state, there can be a 20 year statute of limitations for enforcement of judgments.  Like civil judgments, back child support can also come back and haunt you for up to 20 years.

With all the things that could come back and bite you on the ass, years after you’ve been married, do yourself a favor and make sure as many assets are held in your name as possible.  Also make sure that when it comes to big ticket items like real estate loans, make sure your name is on it as well.