![]() This split usually depends on many different factors that are complicated and may be found in state statutes or in case law. "In the remainder of states that operate under Equitable Division, marital property may be subject to a 'fair' distribution of the property between the spouses, but not necessarily an equal split. It does not matter who acquired it," explains Rodgers. If you live in a state that is considered a Community Property state, all or most of the property that you earned or acquired during the course of your marriage will be subject to a 50/50 split. ![]() Equitable Division (aka Equitable Distribution). "There are two different theories that states operate under when it comes to property: Community Property vs. A prenup allows a couple to separate properties between what is considered "jointly ours" (known as Marital Property / Community Property) and "yours along" (Separate Property). Let's say you and your partner want to purchase a residential property and an investment property in the first few years of marriage. Prenups Allow for a Separation of Property A prenup allows them to protect the other from that debt in a divorce." "Today, most Millennials and Gen-Z have some form of student debt. "In a divorce, judges have great discretion to attribute debt accrued either prior to marriage or during marriage to both spouses," she explains. A prenup is advised in this situation as this agreement allows couples to not only separate their assets but their debts. Let's say one party has student debt or owes a former partner from a prior marriage a significant amount in the divorce settlement. For couples who don't sign prenups before marriage, all of these assets can become marital assets once you wed. This includes real estate (condos, homes and properties purchased prior to marriage), retirement plans, investment and savings accounts, as well as high-value material property, such as artwork and fine jewelry. Prenups Allow for a Separation of Premarital AssetsĪ prenup allows couples to divide "separate property" assets acquired by either party prior to marriage, says Rodgers. "Prenups set realistic expectations in a marriage, acting as a tool for communication." If that isn't reason enough for why couples should get a prenup, here's why the contract should be signed and bank accounts determined-all before walking down the aisle. "Couples may have student debt or own businesses, or perhaps they want a marriage with financial transparency," muses Rodgers. With that, couples are thinking about their long-term futures, including possible life insurance plans for a surviving spouse to real estate and retirement plans. This has correlated directly to higher salaries and income opportunities. However, there has been a societal and cultural shift surrounding prenups as the average age of marriage continues to rise and more modern women are focusing on their careers. Pop culture hasn't exactly helped this narrative-anecdotally, lyrics about spousal support and entering a marriage with a certain intent have fueled a stigma around the topic. Join Opinion on Facebook and follow updates on /roomfordebate.A misconception is prenups overwhelmingly favored men, which may have been the case when they were historically the higher-income earners within households. ![]() Prenups already exist, so why not use them as a tool to strengthen marriages before saying “I do”? The court’s decision is in line with the purpose of a prenup as expressed by the law.ĭivorce rates continue to hover around 50 percent and many couples cite conflict over finances as the primary reason for why they are divorcing. Based on the facts of the case, it’s not surprising that the couple separated. Peter Petrakis appears to have misled his wife at every stage, and to have been anything but transparent. The Petrakis case is a perfect example of how not to approach a prenup conversation. Whether an engaged couple can reach a resolution or not, they can use the discussion to create a framework of understanding that allows the marriage to develop healthfully. Many of these topics are addressed in the law, but some might be more delicately handled with a customized prenup. Challenging topics will inevitably arise during a marriage. We enter into a nuptial contract when we say “I do” but not very many of us know the exact terms of it.Ī couple should use the existence of a "state prenup" to discuss finances before getting married. That said, a couple can’t know if it works for them unless they take the time to explore the law. It has been crafted over hundreds of years both through common law and common sense. The question is not whether you should have a prenup, but whether you want your state’s default version of one.įor the majority of couples, a state’s default prenup is perfectly sufficient. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |