Results tagged “prenuptial agreements” from Sacramento Family Law

You're young, you're in love, you trust each other. No need for a prenuptial agreement before you tie the knot, right?

Not so fast, you with the rose-colored glasses. As wedding season gears up, it may be time for some unsentimental planning before you walk down the aisle.

Demand for prenups is increasing nationwide as more people become aware that they're not just for the rich and famous. Roughly 40 percent of marriages fail, after all, so there's nothing disloyal or cold-hearted about preparing for contingencies.

"If close to half of all marriages are going to end in divorce, it makes sense to plan for it," says Marlene Eskind Moses, president of the American Academy of Matrimonial Lawyers.

A prenuptial agreement is simply a legal document that describes how property and assets brought into and acquired during a marriage will be treated if there's a divorce.

It isn't essential for everyone. A couple entering a first marriage with few assets, debts or other extenuating circumstances can generally forego the expense. With two lawyers recommended -- one for each person -- even an uncomplicated prenup can run $2,000 to $3,000 or more.

The cost goes a long way toward explaining why still only 3 percent to 5 percent of married couples have prenups. They are most popular with baby boomers in the 40-to-60 age range, who have more money and can afford to pay for adequate protection.

Yet it can pay off in the long run.

"It has the potential to save a tremendous amount of legal fees" in the event of divorce, says Robert Maloney, a financial planner in Holderness, N.H.

While awareness of prenups has grown because of high-profile celebrity divorces, it remains the touchiest of subjects for couples to discuss.

If one partner mentions a prenup, the other's reaction is inevitably "You don't love me!", says Carol Ann Wilson, a financial adviser specializing in divorce in Longmont, Colo. People need to view it as a routine part of the business of getting married, she says, along with planning for budgets, spending and children.

"It's just a piece of paper that sits in a drawer and protects them in case they don't have a happy marriage," Wilson says.

To broach the subject in a nonconfrontational way, one partner might propose scheduling a financial discussion for, say, 7 to 9 p.m. one evening, followed by a romantic date afterward. The business chat can include talk about what kind of budget they're going to have, whether they need separate checking accounts, savings goals, spending limits and, yes, a prenup.

So who really must have one?

Here are seven situations in which a prenup is advisable:

-- 1. When significant assets are involved, such as a home, stock or retirement funds.
Both sides need protection from the consequences of any breakdown of the marriage in this instance.

-- 2. When there are children from previous marriages.
Any time children are involved, there's an extra incentive to protect their interests. Most states will give the surviving spouse up to half of an estate, leaving the children no say. That could be at least partially avoided by using a prenup.

-- 3. When one partner owns all or part of a business.
In a breakup, the attorney for the other partner will likely go after a share of the "family" business.

-- 4. When one partner is much wealthier than the other.
A one-sided money situation can easily be cause for jealousy or, later, legal dispute.

-- 5. When one spouse-to-be is much older.
The older partner may not be able to recover to provide for his or her retirement if assets are split 50-50.

-- 6. When one partner will be supporting the other while he or she pursues a degree.
A $100,000 debt for grad school could easily outlast the marriage.

-- 7. When an inheritance is expected.
Even without big money involved, some see a prenup as critical for any marriage that's not the first for either side. "In any second or third marriage, I believe it should be required," Maloney says.

Continue reading "Wedding season mantra: Till prenup do us part" »

California Divorce Overview

California is a 'no-fault' divorce state, which means that when a spouse requests a divorce, they will not need to specify a reason or prove wrong-doing on part of the other. From time of initial filing, the soonest a divorce can be finalized is 6 months.

No-fault does not mean no disagreements, though. If you foresee that there may be disagreements regarding how the family assets are going to be handled, or how the kids will be cared for, get professional advice immediately.

Even if you both agree on how to separate your lives, it is important to have the agreement reviewed by a professional. An advisor who has been involved in many divorces can help you spot weaknesses in the agreement and will help ensure that the final agreement is strong and will last for many, many years.

Continue reading "California Divorce Overview - Basics About Divorce Laws" »

A millionaire landowner asked the Court of Appeal yesterday for permission to appeal against an £8m divorce settlement on the grounds that it was "too much".

The court heard that Erik Maurice Robson, 66, who is selling his stately home, Kiddington Hall, in Oxfordshire, to comply with his former wife's divorce settlement, has seen its value fall during the credit crunch.

Kiddington Hall, which was built in 1673, was bought by Mr Robson's father, Sir Lawrence Robson, founder of the accountancy firm Robson Rhodes in the 1950s.

The grade II listed mansion house sits in gardens laid out in the 18th century by Capability Brown and is one of the finest English country homes to go on sale in recent years.

The appeal court heard that last July, a court awarded Mr Robson's former wife Chloe an £8m gross lump sum - of which about £5m was earmarked to buy a home and a further £2.4m for an income trust.

In a further judgment last July, the court ruled that Kiddington Hall be sold as part of the clean break between the couple.

However, a fall in property values has meant that Mr Robson's freehold interest in the Oxfordshire estate is now worth about £13.18m net - excluding furniture, capital gains tax and sale costs - rather than the £16m figure used by the court last year.

Tim Amos QC, representing Mr Robson, told the appeal court that the £8m divorce settlement was "clearly too much" - particularly as most of the wealth had been inherited from Mr Robson's parents rather than being money made by the couple during their marriage.

He said there was a "need to be more cautious or less free" with money that is "actually nothing to do with either of the parties or their marriage".

He told the three Court of Appeal judges: "I do not suggest you can ring-fence it... but the fact it is inherited from someone else impresses it with a different character."

Judgment was reserved.

The hearing raises a much broader issue concerning what wealthy individuals can do to protect their inherited wealth in big-money marriage break-ups.

Continue reading "Stately home at heart of divorce appeal" »

American Idol judge and celebrity personality in his own right Simon Cowell has proven to be many things, but foolish has never really been one of them. So it should be no surprise that as things get more serious with his new girlfriend, Simon won't even consider walking down the aisle unless there's a pre-nup in place. Way to protect your hundreds of millions, Simon!

Simon Cowell is a new man now that girlfriend Mezhgan Hussainy is in his life. Even the music mogul's 84 year-old-mother said, "There's such a glow about him. I think he would make a wonderful husband."

However one thing that hasn't changed about the 'Idol' judge is his ability to tell it exactly as it is.

"Simon has made it clear to Mezhgan that he will not be walking down the aisle unless a pre-nup has been signed," a friend of Simon's tells me [Rob Shuter]. "He is in love, he hasn't lost his mind."

Mr. Cowell is estimated to be worth over $175 million. It has been reported that half of all US marriages end in divorce.

Continue reading "Simon Says: No Marriage Without Pre-Nup" »