A prenuptial agreement can be a practical solution to extensive property dispute during a divorce. Clearly, discussions regarding property distribution in the event of a divorce can be uncomfortable in any case but especially during wedding preparations. Nevertheless, a couple who can reach an agreement which protects the respective rights of each spouse can avoid much unnecessary stress later.
A prenuptial agreement is a contract entered into between a couple about to get married. The agreement can address specific issues relating to property division. A prenup is an effective tool for setting forth the rules of property division in the event of a divorce. Additionally, the agreement can limit the responsibility of the spouses for eachother’s debts. Essentially, the contract can set forth who gets what should the marriage fail and who will take responsibility for marital debt. The contract can be used to protect the rights of inheritance of children from a prior marriage. Spouses can give up their rights to inherit certain property, perhaps in exchange for other benefits. Estate planning which reflects a spouse’s true intentions pursuant to the prenup is recommended. A will can not supercede the provisions of a prenuptial agreement. In other words, testamentary provisions can provide more generous, but not less, benefits to a spouse than the agreement allows. A couple can agree to have certain property, such as family heirlooms, revert to their birth families in the event of death. Other issues such as the filing of joint and separate tax returns, the payment of household bills, setting up and maintaining joint accounts, agreements relating to specific purchases or projects, such as buying a home or starting a business, savings, payment of college or graduate school tuition for your spouse, providing for a surviving spouse through an insurance policy or will, and agreements as to dispute resolution, such as hiring a mediator or private arbitrator, can also be set forth in a prenuptial agreement. (more…)
The issues leading to a divorce often occur long before a split is even considered. In many instances, there are clear signs that a couple is incompatible and will have trouble living together before a marriage even occurs. Most people are not thinking about the eventuality of a divorce while they are planning a wedding. Nevertheless, a careful examination of yourself, your partner and your relationship prior to the actual wedding can save you from a lot of unnecessary stress during the marriage and, possibly, avert the necessity of a divorce.
Prior to entering into a relationship, it is important to examine your individual needs, wants and values. Chances are you will have a difficult time building a solid relationship with your partner if you are unclear about your own priorities. Assessing your values, determining what is important to you as an individual and realizing where you can compromise will help you develop as a person and better understand what you need in a relationship. Some important issues to consider are religious beliefs, relationship to money, work ethic, living situation, or where you feel comfortable residing, family ties, friendships and desire to have children. (more…)
A college education can very well be one of the largest expenditures a parent will undertake on behalf of a child. Currently tuition for a private college education in the United States, including room and board, can run upwards of $50,000 per year. If the cost of books, spending money, clothing and other necessities is also factored into the equation, the final price tag for a four year education at a private institution could very well run in excess of $250,000. Many parents recognise the benefits of helping their children with the financial burden that a college education entails. Others, however, do not see the need to cover any of the costs associated with higher learning. If tension in this regard existed during a marriage, it will be exacerbated by the divorce. Ideally, the economic upheaval created by a divorce should not effect a child’s ability to attend college. A clear determination with regard to each parent’s responsibiliy regarding college expenses should be set forth in the divorce decree or settlement agreement in order to avoid arguments during the application process.
A divorce can result in one parent carrying the burden of college tuition alone. If a settlement agreement can be reached, it is important to detail the responsibilities of each parent for college expenses in a clear and concise manner. Generally the terms of your agreement in this regard will be honored. Remember that the costs of state schools are substantially lower than the tuition of private institutions. Therefor, a separation agreement should specifically account for the actual costs of the child’s higher education.
It is important to discuss the applicable state laws in this regard with your attorney. Some states will require each parent to contribute to college costs while others will not. Educational expenses are paid in addition to, rather than instead of, child support. (more…)
Generally, the last thing anyone wants to do following the completion of a divorce is seek advice from another attorney. Nevertheless, reevaluation in this regard following the termination of a marriage is imperative. Estate planning post divorce is necessarily different than it had been during the marriage.
Discussions with a wills and estate attorney who you trust is important during the divorce process. Many states have different laws regarding the distribution of assets for estate purposes which regulate how a spouse can inherit. In New York, a spouse can not be disinherited and retains his right to inherit from his partner’s estate until the marriage is fully and finally dissolved. Essentially, any changes in a will which limit your spouse’s rights during the divorce proceeding will not be effective. Since the laws in other states may vary, I recommend a discussion with a trusts and estates attorney whom you trust. Regardless of the applicable state laws, you might want to confer with a lawyer regarding your will during the divorce process in order to determine the steps you can take to protect yourself and your heirs from your spouse.
If a spouse dies intestate, or without a will, prior to the end of a marriage, or before the divorce proceeding has been finalized, the surviving partner is entitled to the entire estate if there are no children. Should children be involved, the surviving spouse will be entitled to the first $50,000 and half of the remainder of the estate after the deduction of expenses, debts and taxes paid by the estate. The children will be entitled to the remaining half of the estate. On the other hand, where a will is involved the surviving spouse is entitled to inherit the greater of $50,000 or 1/3 of the estate. (more…)
Generally, assets held by your children will not be included as marital property for distributive purpose upon divorce. Essentially, any property held by your offspring will be treated as any other third party asset. Issues arise in cases where parents hold property intended for their minor children without properly giving up control of the asset. Certainly, parental involvement is necessary where a minor’s property is concerned however the assets should be clearly earmarked as belonging to the children rather than remaining in the sole name of the parent.
Custodial accounts, such as those established pursuant to UGMA (Uniformed Gifs to Minors Act) or UTMA (Uniform Transfers to Minors Act), are intended for the benefit of minor children under the supervision of a custodian, usually a parent. Since the account is clearly earmarked for the child’s use and benefit it usually remains intact post divorce. Generally UGMA or UTMA accounts are intended to cover educational expenses but can be invaded for the benefit or support of a minor child. A minor usually obtains full control of the account upon his eighteenth birthday. (more…)
