Prenup: Romance Killer or Responsible Legal Tool

May 8, 2013 1 Comment

When your partner suggests a prenuptial agreement, you might feel like they are saying “I have doubts about your true agenda as well as our ability to make this marriage work for the long haul”.   Because a prenuptial agreement only becomes valid during a divorce, broaching the subject can feel like a romance killer for the newly engaged couple.

 

But prenuptial agreements do not have to be romance killers.  Couples who are pragmatic about finances tend to have the most long lasting marriages!  Unfortunately, the harsh reality is that over half of marriages end in divorce.  Divorce can be stressful, exhausting and expensive.  A prenuptial agreement is a legal agreement that defines the nature and scope of each spouse’s assets, anticipated assets and marital property in the case of a divorce.  A prenuptial agreement can make the division of marital property much smoother during divorce proceedings.

A prenuptial agreement has the reputation of being utilized by very wealthy men with trophy housewives.  That reputation is changing.  We live in a world where men are stay-at-home dads, women are corporate executives, divorces and second marriages are common, same sex marriage is legal and people are entering into marriages with monumental student loan debt.  Nowadays modern marriages are just as much about a romantic union as they are a financial union.  Prenuptial agreements help ensure the financial well-being of a modern marriage as well as make divorce less stressful.

Prenuptial agreements define the division of marital property in the case of a divorce.  Marital property can be tangible and intangible assets as well as debts.

  • If your spouse pursues secondary education and acquires debt, a prenuptial agreement can define that debt as individual debt.
  • If you plan on giving up your career to be a stay-at-home mom or dad, then a prenuptial agreement can compensate you for sacrificing years of work experience.
  • If during the marriage you have started your own business and it has become very profitable, a prenuptial agreement can limit a former spouse’s financial interest or control of the business.
  • If you have children from a first marriage, a prenuptial agreement can help protect their inheritance rights.

One of their main drawbacks is that you cannot predict the future.  Circumstances may change and what seemed like a fair division of marital property when the prenuptial agreement was signed could turn out to be a huge burden.  Another disadvantage to prenuptial agreements is that they are usually created during an engagement.   At this time it is hard for couples to imagine the marriage ever ending. This often results in one or both partners being very lenient in the prenuptial agreement terms and not looking after their best interest.

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To Marry, or not to Marry? That is the Question

May 8, 2013 Leave a comment

People appear increasingly less willing to take the plunge and tie the knot, meanwhile national marriage statistics continue to take a plunge instead.

 

It is becoming more common for couples to exhibit all of the usual symptoms of a marriage without actually getting married. The causes behind this cultural shift are likely as complicated as the legal ramifications that transpire.  According to the US 2010 Census data, over 7.5 million unmarried couples live together.  Other trends demonstrate that unmarried couples are now more frequently sharing finances, making joint purchases, and starting families. Some couples even go as far as having a wedding reception and wearing wedding rings, but never sign any legal documents.

This issue begs a number of legal questions. Unmarried couples are exposed to a variety of uncertainties typically addressed by traditional marriage. These uncertainties include how to recognize divided or shared property and finances, discretion of care in cases of emergency and other decision making responsibilities between spouses. Additionally, it also leaves a mess of questions to be answered should the couple break up.

A couple that isn’t legally married will not receive any of the benefits that come with marriage, such as various tax breaks and other privileges.  However, there are still several ways an unmarried couple can protect themselves financially and legally.

Legally recognized spouses are usually automatic beneficiaries in estate plans.  An unmarried couple may want to write a will that ensures that their partner will receive property when the other dies. Otherwise, assets may be inherited by closer family members without that being the actual intention of the deceased.

Unmarried couples can consider creating a “living together contract” that outlines property division to avoid court battles in the event of a break up.  A living together contract should include the property or finances that one party had before the relationship began, and those bought, inherited or received during the relationship.  Living together contracts often include a method for resolving disagreements, such as mediation or collaborative law.

In Maryland, a child born during wedlock is presumed to be a legitimate child.  Unmarried couples should consider signing a paternity statement to protect a father’s rights in the event of a break up.

Unlike a marriage, unmarried couples are not responsible for each other’s debt and often enjoy a certain degree of financial independence.  However, this financial independence disappears when unmarried couples sign joint purchase agreements, cosign on a loan, or a partner’s debt is charged to a joint bank account. It is important for these couples to decide how to deal with debt.

Unmarried couples with no intention of marrying might find it helpful to seek the advice of a family law attorney who can help them draft contracts, paternity statements, or create an estate plan to ensure that each partner is treated fairly.

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Wednesday Evening and Every Other Weekend

December 12, 2012 Leave a comment

Child visitation schedules are very important to have when it comes to determining which parent has physical custody of a child at any given time. First you should familiarize yourself with the current family laws of the State of Maryland or contact an experienced family law attorney to determine your rights. The Maryland code, Court Rules and Case Laws are great places to start if you do not have an attorney.

 

The Maryland Court System does not have a preference for any specific parent or gender when making a determination on child custody. The Maryland Courts focus on the “best interests of the child standard” when making visitation and custody decisions.

The court takes into consideration many factors when determining custody and visitation arrangements such as the parents’ capacity to provide for the child, the living arrangements at the parent’s home and the parent’s ability to support the child.  The Maryland court will look at past instances of abuse or domestic violence in visitation and custody cases.  In some instances even grandparents and the children themselves can petition for visitation rights (See Post: Old Enough to Choose).

Creating a child visitation schedule can be hard to do during a time when emotions are high, especially during a divorce.  You don’t have to work with the other parent on coming up with a visitation schedule but it is in your child’s best interest to do so. Only the parents know the intricacies of their own schedules and an in-depth knowledge of their children’s needs.  It is best for the parents to make a determination without the courts when making a visitation schedule. Otherwise a judge (a complete stranger) will make these important decisions for the parents.

Setting aside your differences to create an effective visitation schedule is something that most parents do for the sake of their children. However, if you are unable to reconcile differences a court officer or mediator will make the decision for you based on the best interest of the child.  When making a visitation schedule try to think about all of the aspects of your child’s life from daily activities to special circumstances. If you make a schedule so that your child’s needs are met, then you will have a schedule that benefits your situation.

Even though Maryland doesn’t have a standard visitation schedule some counties have guidelines which can help you make a decision.  A common visitation schedule provides that the non-custodial parent who lives less than an hour away from the custodial parent can have the children every other weekend from 7 pm on Friday to 7 pm on Sunday.  Usually a visitation schedule will grant the non-custodial parent one evening during the week with the child as well. The residential visitation schedule should closely resemble the type of custody the parents have. The courts look at the current schedule of the parties to maintain the status quo.

In addition to the normal weekly visitation schedule parents should also consider holiday schedules and vacation schedules.

A holiday visitation schedule should include provisions for your child time to spend time with each of you on holidays and other special days. Many parents rotate the holidays, alternating them every year.  But for parents whose professions are in healthcare or retail, rotating holidays isn’t always an option as many of these parents often have to work on holidays or have limited time off during holidays.   Always create the holiday visitation schedule as you see fit, allow for exceptions and be flexible.

Remember other holidays and special days like Mother’s Day, Father’s Day, birthdays, three day weekends such as Memorial and Labor Day, Fourth of July and any other special days you would like. Be sure to specify the times that the holiday visitation begins and ends in the schedule. The holiday schedule replaces the regular visitation schedule.

A visitation schedule should also permit your child to have extended time with each of you during school breaks and the parents’ personal vacation times. The vacation schedule can be less date specific, since the exact dates of personal vacation time may vary.  A work-at-home mom or a father who is a school teacher may have more flexibility in summer vacations than a parent who works in an office.  Visitation schedules can include instructions for out of state travel and guidelines for giving advanced notice to each parent about vacation times.

Lastly, you may want to create some rules that help you follow the visitation schedule.  For example how you’ll exchange the child for visitation, how you’ll make changes to the schedule, or how you’ll handle emergency events.  Basically, you just need to make sure that your custody schedule is in the best interest of the child. It is always best to work with an experienced divorce/family law attorney who can help you understand how custody, visitation, child support and other child related laws apply during your divorce.  With decades of experience in divorce law Maslan, Maslan & Rothwell can help you personalize a visitation schedule that works best for your situation.

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