Many people still view prenuptial agreements as something that should not be part of a marriage. In reality, Georgia farmers can benefit from realizing that prenuptial agreements are a type of insurance that can provide helpful assistance in case a marriage does not last. These agreements merely help to make sure that each party leaves with what is theirs in case the marriage does not last. While it was once thought that marital agreements were only necessary for celebrities, they are now seen as helping anyone who marries, including farm families. This is because these agreements allow parties to create their own rules for how property should be divided. The following will review important issues that farm families should consider when separating marital and individual assets.
Know How to Categorize Property
During a marriage, property will fall into one of three categories — belonging to spouse 1, belonging to spouse 2, and marital (shared) property. Prenuptial agreements identify what separate property each spouse owns as well as what will be classified as marital property.
Pre-Marital Property is Often Separate
Property that is obtained before marriage is often classified as separate property, although this categorization can be obscured through a prenuptial agreement. This is why prenuptial agreements often attach a Schedule of Assets and Debts for each party. These agreements also often note that this property is each individual’s responsibility. Of course, you can always decide to re-categorize assets obtained before marriage as marital property in a prenuptial agreement.
Gifts and Inheritances are Often Classified as Separate
Any gifts or inheritances that are received during a marriage are classified as separate property, but these assets too can be turned into marital assets. Many prenuptial agreements, however, note that gifts in one person’s name are classified as separate property.
Businesses that are formed during a marriage in Georgia are almost always classified as marital property. If a business already existed at the time that a couple married, the appreciation of the business will likely be classified as marital property, particularly if the other spouse played any role in actively supporting the business. Consequently, a prenuptial agreement should distinguish whether any present or future businesses will be classified as marital or separate property. Parties can also negotiate how they will receive interest in or a percentage of the business in case of a divorce.
As a farm owner, you likely have a great degree of discretion regarding how much and what type of assets are set aside for your retirement. While issues concerning retirement often involve many complex emotions, but it is important to have discussions about how these assets will be handled in a prenuptial agreement.
Speak with a Knowledgeable Family Law Attorney Today
No matter if you are debating getting married and have questions about a prenuptial agreement or are ending a marriage and have questions about the terms of a prenuptial agreement, a divorce lawyer can help. Contact Vayman & Teitelbaum, P.C. today to schedule a free case evaluation.