When the world’s third-richest person delays his wedding, people pay attention. Not just to the glitz and guest list, but to the legal mechanics behind the scenes.
The division of property is one of the most significant factors in many North Carolina divorces. Spouses accumulate substantial assets and debts throughout their marriage, including real estate, retirement accounts, investment portfolios, vehicles, and bank accounts. North Carolina statutes support equitable distribution, meaning that if either spouse requests it a court will determine a fair and equitable division of marital property.
Spouses with prenuptial or premarital agreements may believe that this contract prevents an equitable distribution of property in a divorce, but that may not be true. Precise wording is critical because not all agreements meet the requirements to waive equitable distribution.
Wayne Hopper, Legal Assistant
STEWART v. STEWART, 141 NC App. 236
Dividing assets collected throughout a marriage is an unfortunate but necessary undertaking with divorce. This process can cause conflict, especially when the asset was brought into the marriage by one party. In North Carolina, a business stake or an interest in a professional practice can be considered a marital asset subject to Equitable Distribution. While a premarital agreement is worth considering for a party bringing assets into a marriage, the language contained therein is just as important. Your spouse may challenge a premarital agreement without clear and suitable terms. Let’s look at one such case. Continue reading →
It is no secret that millennials often get a bad rap. As one of the largest generations in history, their influence in the world is far-reaching. Growing up in rapidly changing times has meant that millennials have redefined many aspects of life, with priorities and expectations drastically different from previous generations. As a result, millennials have successfully put their spin on prenuptial agreements and are looking at this important pre-marital contract through a different lens. Continue reading →
Some people assume it’s not romantic to anticipate the possibility that you and your spouse won’t stay together, but in truth nobody can predict the future. Often people’s feelings change as their lives change. Sometimes marriages are more difficult than anticipated at the beginning. It can be helpful for partners to discuss the possibility that their feelings will change, and hire an attorney to craft a prenuptial agreement. Forbes published an article reasoning that it can help to have a balanced conversation if your feelings change, while you have good feelings about your partner and want the best for him or her.
Dear Carolyn,
My daughter is getting married next year. We have family business and my daughter works in the business. Is a premarital agreement appropriate for her, even though she is only 25? When should she bring this up with her fiancé?
Carolyn Answers…
Now let’s change the hypothetical of our Greensboro couple – Petunia and Rocky – in one respect. Recall that Petunia’s parents wanted her to have a premarital agreement regarding Home Grown Lawn Care, but Petunia and Rocky did not sign one. Maybe a few years into her marriage, Petunia realizes that she wants to keep Home Grown Lawn Care in the family and that Rocky and her parents just do not get along. So Petunia executes a will, leaving her shares of Home Grown Lawn Care to her parents and the remainder of her estate to Rocky. Continue reading →
Now that we have the details and definitions out of the way, we can return to our Greensboro couple Rocky and Petunia and take a look at what happens to Petunia’s estate. Recall that Petunia died without a premarital agreement, without children, and without a will. Since Petunia died without a will, this means that she has died intestate, and her property will pass via intestacy, with Rocky as the administrator of her estate. Also recall that Petunia died with an interest in Home Grown Lawn Care worth $125,000.00 and a 401(k) worth $15,000.00, of which Rocky is the beneficiary. Also, Petunia died in a car accident five years into the marriage – this will be important later on. Continue reading →
We previously discussed ways to protect gifted or inherited property from the claims of a child’s spouse, from the viewpoint of the parent making the transfers. It noted that the law already protects the amount of the gift or inheritance, plus any appreciation not caused by marital funds or efforts. Continue reading →
The previous two posts on premarital agreements have addressed future spouses who are considering signing a premarital agreement. The final two posts in this series will address the future spouses’ parents.
In particular, this post is directed at parents who have worked hard enough, and been fortunate enough, to accumulate significant property. You desire, naturally enough, to leave that property to your children. But you do not want that property to pass to your children’s spouses. How can this goal be accomplished? Continue reading →
North Carolina Divorce Lawyers Blog