The conclusion of a marriage contract can help you to avoid a lot of confusion in the event of a divorce. The family law lawyer and co-author of The New Love Deal: Everything You Must Know Before Marrying, Move In, or Moving On Gemma B. Mr Allen said the deal could provide a “comprehensive overall approach” to the treatment of assets and liabilities. It could also protect the family’s desired assets or interests and avoid being exposed to social media.
She said a marriage contract was a flexible tool that could meet all the goals the couple wanted to achieve in terms of their financial future. It would leave them in control of their future and remove them from the “discretionary power of the court system.”
However, if you do not have a marriage contract, the future of your assets will be settled by the state and the court in the event of a divorce. So the following is going to happen.
According to Allen, where to live plays an important role in the event of a divorce. States have some “very serious and some subtle differences in their laws and in the way these factors work together.” However, these differences can affect your future if you call your lawyer to get divorced.
The state can divide your assets in two ways.
The first, most commonly used by most states, is referred to as “fair ownership” or “dissolution.” Here, Allen explained that only marital property could be divided on a “fair basis”. The non-marital property, on the other hand, or the things you had before you married and that you could keep separate would belong to you alone.
The second is ‘community property’. This is a matter of much press, although it only applies in eight states, including California, where high-profile celebrities often opt for divorce.
In these states, judges have no discretion over the common assets. So they’ll just split it into two halves. However, your lawyer should need to know that the inherited and premarital assets will remain the separate property of the actual owner.
THE COURT OF JUSTICE
In court, your assets include everything you own – from the greatest things like real estate, investments and business to the simplest things like your bed, your lamp, etc. So when it come to classifying your assets, things can get very tricky.
If all your assets are real estate, you need to record who sells what, when it is sold, and at what price. If it is a company, you need to answer the questions about how you, as the owner, how you can afford to buy out your spouse, and what conditions should be set.
When it is a matter of equities, there can be too many problems with market conditions and capital gains. Your former marital home will also cause problems because of the money and, believe it or not, because of the memories.
If that sounds a bit messy, it is. Allen said that justice, like beauty, is in the eye of the beholder. And I am sorry, your lawyer cannot do anything about it, as it is at the discretion of the judge whether he divides your marital assets 50/50 or whether one of you should receive more or less due to health, age, earning opportunities and various other reasons.
Allen also noted that regardless of the state’s litigation, the court has discretion over maintenance payments, which are now most often referred to as spouse maintenance or maintenance and child maintenance. In addition to these things, the court will also split your debts, whether you like it or not.