DIVORCE WITHOUT A PRENUPTIAL AGREEMENT: WHAT HAPPENS NEXT?
Having a prenuptial agreement will avoid confusion once a couple decides to get a divorce. According to a family lawyer, a prenup will give an overall understanding of how the liabilities and assets will be treated. It will also help protect the asset to the interest of the family.
A prenuptial agreement is a tool that can help the couple achieve their goals when it comes to their financial states. It will give both parties control over their future, and help them avoid the court system’s power.
Now, if you don’t have a prenuptial agreement, your assets’ fate will be into these two hands:
According to a family lawyer, your assets will include planes, boats, cars, trademarks, copyrights, patents, options, insurance policies, stocks, bank accounts, timeshares, businesses, and houses, together with your deferred assets and retirement.
When it comes to classifying the assets, things can get tricky, especially when it comes to retirement accounts. For instance, if the assets consist of real estate, then both parties will decide on who will sell it and at what price. Now, if the asset is a business, then both parties will decide as to who among them can afford to buy out.
Stock interests, on the other hand, can present issues of capital gains and market conditions. The marital home is also an issue, due to memories and money issues.
Now, if things get rough, the court can always help, and the judges can always divide all of the marital assets equally. There will also be some instances where the other spouse should receive less or more of the property. Usually, the reason for either is by earning power, age, and health.
Now, the place where you live is also important when it comes to filing for divorce. The reason behind this is because every state has different laws, and these laws play a huge factor when it comes to divorce. These differences can also affect your overall future.
A state may use an equitable property, aka a dissolution. This is where the marital assets will be divided on an equitable basis. On the other hand, non-marital assets such as inheritance, gifts, or personal things before you got married, will be yours alone.
These are the things that can happen once you file a divorce without getting a prenup. So if you’re married, it would be best to think about these things above. If you are not married, then consider getting a prenuptial agreement before getting married.
Based on Materials from Business Insider
Photo Sources: Medium, Florida Politics, Richmond Hill 411