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marriage

Understanding Prenuptial Agreements

Understanding Prenuptial Agreements

By Inna G. Materese | Esquire

When we hear the words “prenuptial agreement” or “prenup,” most of us think of wealth, celebrities, or even unreasonable demands we’ve seen in the movies. Prenuptial Agreements have had the misfortune of being seen as unromantic, fatalist, and unseemly. However, a prenuptial agreement – or a contract entered into before marriage that outlines the rights and obligations of both spouses in the event of divorce – can prove to be useful for individuals in a variety of financial circumstances.

Many clients wonder, “Why do I need to know about a prenuptial agreement now that I’m going through a divorce?” The answer is simple: A prenuptial agreement can help you reduce conflict in a future relationship and can serve as valuable financial planning tool.

You may be aware that Pennsylvania’s Divorce Code provides for a process, called equitable distribution, by which marital property is divided. In addition, our divorce and support laws provide for support remedies such as alimony pendente lite and alimony in the event of divorce. In the absence of a prenuptial agreement, these laws largely govern what happens to your finances in the event of divorce. Unsurprisingly, many of us are not too keen about how these laws are applied to our lives. A prenuptial agreement can help you predetermine how your financial circumstances will be resolved in the event of divorce.

A prenuptial agreement can assist you with:

  • Financial Planning – A prenuptial agreement is a vehicle by which you and your future spouse can determine for yourselves what kind of property is and will remain separate, and what kind of property, if any, will be marital. It also permits the spouses to designate whether income earned during the marriage remains the separate property of the person who earned it, whether and to what extent retirement accounts may be marital, and who gets what in the event of divorce. By clearly establishing these understandings prior to the marriage, you may be able to better gauge what your financial picture may look like upon divorce.
  • Estate Planning – A prenuptial agreement can be a critical estate planning tool, particularly if you have children from a previous relationship. Designating your spouse’s ability to inherit from your estate, and to what extent, can help you provide for your spouse, children from a previous relationship, and/or other family in your desired manner.
  • Debt Allocation – In a divorce action, the court will distribute and divide marital debts in addition to marital property. Many clients are frustrated by the idea that they must assume a portion of marital debts that may have been incurred solely by the other spouse. A prenuptial agreement can be an effective way of shielding you from debts incurred by the other spouse during marriage.
  • Support – Our support law provides for alimony during and after the pendency of a divorce, with factors and guidelines that often prescribe how income and support are calculated. A prenuptial agreement allows individuals the freedom to determine some of these support issues for themselves. However, it should be noted that issues of child support and child custody are not binding and are always modifiable.

Is Your Marriage Being Impacted by the Trump Effect

Is Your Marriage Being Impacted by the Trump Effect

By Inna G. Materese | Esquire

Research from Wakefield Research, a marketing research firm, has found that one in ten couples (both married and unmarried) have ended their relationships over political disagreement. Among millennials, this rate of occurrence is 22%. 

Indeed, multiple dating websites and other online information gathering sources report that more couples than ever are arguing and breaking up due to opposing political stances regarding the current president. Read more...

The Ambition v. Marriage Trade-Off

The Ambition v. Marriage Trade-Off

By Inna G. Materese | Esquire

While our cultural consciousness may be changing, research shows the change may be slow. According to the Harvard Business Review, even today, research shows men prefer women who are less professionally ambitious than they are.

Given this perception, many single women face an age-old dilemma: Should I sacrifice my career for marriage, or vice versa? 

Research suggests that single women tend to avoid actions that would help their careers because of marriage considerations. The effect is seen not only macro decision-making, such as making schooling determinations, initial career decisions, taking on leadership roles and asking for promotions. Daily decisions such as speaking up at meetings, working late, taking charge of a project, even certain outfits, haircuts, and makeup may be impacted by a single woman's weighing of whether the choice will make her more or less attractive to a potential partner. Read more....

 

 

Before You Tie the Knot, Ask Yourself...

Before You Tie the Knot, Ask Yourself...

By Inna G. Materese | Esquire

There are few other times in a couple's life together as gleeful, romantic, and exciting as getting engaged and married. However, while it's not exactly the stuff of romance novels, discussing certain legal and logistical matters before tying the knot may protect your marriage from unraveling in the future. Before you say "I do" consider the following:

1. Do we need a prenuptial agreement? Most of us have some preconceived notions about prenuptial agreements. These agreements - meant to specify in advance each spouse's rights in the event that the marriage breaks down - are not just for the rich and famous. If you or your spouse own a family business, family real estate or property, or other interests you'd like to preserve, you may want to consider putting your intent to paper to ensure that those interests are protected in the event of death or divorce. Likewise, couples who anticipate a certain lifestyle (such as one spouse becoming a stay-at-home parent) may want to predetermine how either spouse will be maintained in the event of separation or divorce. Lastly, couples who are marrying for the second time and may have children from a previous marriage may want to preserve certain property or income for their children of the first marriage. 

2. Will we purchase a home and/or how will we maintain a home? If you and your partner intend to buy a home together, consider the source of the funds for the purchase. Discussing how such a large purchase will be made ahead of time can stave off issues down the road. Consider whether you and your partner intend to title the property in joint names and how you intend the property to be passed down upon your death. If either you or your partner intend to move into a home owned by the other, you should discuss how each of you will contribute to the maintenance or improvement of the home and who would receive the proceeds from the same of that home in the event that you choose to sell it down the road. 

3. What is Pennsylvania's law regarding assets and marital property? Knowing your rights and obligations pursuant to Pennsylvania's divorce and estate laws may not be the most romantic way to enter a marriage. However, being mindful of your rights and obligation to your spouse can help both of you determine the best way to plan your financial life together. Some couples choose to maintain joint accounts and pool their finances, while other prefer to maintain separate finances while contributing to joint expenses. Furthermore, you and your partner may have different ideas about how you want your property and assets to pass in the event of your death. Before you tie the knot, it is important to learn how Pennsylvania's law would handle your finances so you can prepare wills or other estate documents if you'd like your property to pass in a different manner. 

4. If we have children, how will we raise them financially? Discussions regarding future children and parenting styles can be thorny. Not only can you and your partner have different ideas about prefered parenting styles, but you may also have different ideas about what kind of life you'd like your children to lead. Do you or your spouse intend for your children to attend private school? What kind of activities or expenses do you anticipate for your children? Do you wish to help your children pay for higher education? Discussing the kind of obligations and expenses you foresee for your children and how you, as a couple, intend to handle those expenses can help keep you on the same page.  

PA Superior Court Recognizes Same-Sex Couple's Common Law Marriage

PA Superior Court Recognizes Same-Sex Couple's Common Law Marriage

By Inna G. Materese | Esquire

On Monday, Pennsylvania's Superior Court ruled that a same-sex couple had a legitimate common-law marriage decades before same-sex marriage became legal in the state.  The Court wrote, "Same-sex couples have precisely the same capacity to enter marriage contracts as do opposite-sex couples, and a court today may not rely on the now invalidated provisions of the marriage law to deny that constitutional reality." Read more...

 

Before You Tie the Knot, Ask Yourself....

Before You Tie the Knot, Ask Yourself....

By Inna G. Materese | Esquire

There are few other times in a couple's life together as gleeful, romantic, and exciting as getting engaged and married. However, while it's not exactly the stuff of romance novels, discussing certain legal and logistical matters before tying the knot may protect your marriage from unraveling in the future. Before you say "I do" consider the following:

1. Do we need a prenuptial agreement? Most of us have some preconceived notions about prenuptial agreements. These agreements - meant to specify in advance each spouse's rights in the event that the marriage breaks down - are not just for the rich and famous. If you or your spouse own a family business, family real estate or property, or other interests you'd like to preserve, you may want to consider putting your intent to paper to ensure that those interests are protected in the event of death or divorce. Likewise, couples who anticipate a certain lifestyle (such as one spouse becoming a stay-at-home parent) may want to predetermine how either spouse will be maintained in the event of separation or divorce. Lastly, couples who are marrying for the second time and may have children from a previous marriage may want to preserve certain property or income for their children of the first marriage. 

2. Will we purchase a home and/or how will we maintain a home? If you and your partner intend to buy a home together, consider the source of the funds for the purchase. Discussing how such a large purchase will be made ahead of time can stave off issues down the road. Consider whether you and your partner intend to title the property in joint names and how you intend the property to be passed down upon your death. If either you or your partner intend to move into a home owned by the other, you should discuss how each of you will contribute to the maintenance or improvement of the home and who would receive the proceeds from the same of that home in the event that you choose to sell it down the road. 

3. What is Pennsylvania's law regarding assets and marital property? Knowing your rights and obligations pursuant to Pennsylvania's divorce and estate laws may not be the most romantic way to enter a marriage. However, being mindful of your rights and obligation to your spouse can help both of you determine the best way to plan your financial life together. Some couples choose to maintain joint accounts and pool their finances, while other prefer to maintain separate finances while contributing to joint expenses. Furthermore, you and your partner may have different ideas about how you want your property and assets to pass in the event of your death. Before you tie the knot, it is important to learn how Pennsylvania's law would handle your finances so you can prepare wills or other estate documents if you'd like your property to pass in a different manner. 

4. If we have children, how will we raise them financially? Discussions regarding future children and parenting styles can be thorny. Not only can you and your partner have different ideas about prefered parenting styles, but you may also have different ideas about what kind of life you'd like your children to lead. Do you or your spouse intend for your children to attend private school? What kind of activities or expenses do you anticipate for your children? Do you wish to help your children pay for higher education? Discussing the kind of obligations and expenses you foresee for your children and how you, as a couple, intend to handle those expenses can help keep you on the same page.