Prenuptial Agreements becoming more necessary with No-Fault Divorce

All you need is love, but the tabloids tell a different story on a weekly basis. It was reported this week that Sandra Bullock had a no-cheating clause in her prenuptial agreement with Jesse James. Even though California is a no-fault divorce state, she won’t have to worry about James getting any of her estimated $85 million net worth because she was smart enough to not only enter into a prenuptial agreement, but to have that extra sentence written into it.

No-fault divorce means that neither party needs to show that the other party had any wrong-doing that lead to the divorce. As of 1986, the Divorce Act was amended to allow for a divorce after the separation of one year without having to prove any fault by either spouse.

No-fault divorce also means that any financial settlements are based on the needs of the spouses and their ability to pay them. Whether they’re at fault (or cheated) just doesn’t factor in. No-fault divorce shows that having a prenuptial agreement is a smart decision, and more married couples are starting out with one. Prenups mean:

Less stress and more security

Arguments over money are the number one reason couples split up. The lack of worrying about whether or not you’re protected leads to a better feeling of security, lowered stress, less time spent arguing and more time spent enjoying each other.

Dealing with the debt before it spins out of control

No matter what anyone tries to tell you, a party is not responsible for their ex-spouse’s debt. However, both parties are responsible for debt incurred through joint credit of any kind. Having these responsibilities worked out through a prenup will save both parties many headaches and credit problems in the future.

Your hard work is worth it

Some sacrifice a career to stay home with the kids, while others work night and day so their spouse can go to school. These are non-financial contributions to a marriage that sometimes mean much more than money – if the marriage works. If not, compensation is due and this can be handled in a prenup.

Protecting loved ones from other relationships

Second marriages usually happen later in life, and both spouses may have children or relatives from a first marriage who are still in their lives. In the event one spouse passes away, their assets go to exactly who they want.

Keeping your own interests intact as a business owner or artist

If you own a business or create some kind of intellectual property (like a book or an album), in the event of a divorce it can be considered marital property and be split in half. If you’re serious about protecting your own interests, a prenup can prove invaluable.

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By michael - Last updated: Friday, April 9, 2010
Filed in Prenuptial Agreements • Tags: , , ,


Divorce and Pets – Another Reason Prenuptial Agreements Make Sense

Divorce and Your PetIn the midst of divorce, there are laws and systems in place to govern who will end up taking care of and raising children. The children might live with one parent who has full custody, or they might instead spend their time divided between households.

In Canadian family law, there are disagreements as to whether pets are assets or should be treated as children when it comes to which spouse gets to keep them. Each situation calls for different action, and sometimes the court actually looks towards “the best interests of the pet”, meaning which “parent” will have a better yard, be able to pay for veterinary care or tends to go away on vacation less often. In other situations, the court might actually establish visitation arrangements for the pet.

It’s not unusual to be extremely attached to your pet, and pets are sometimes used as pawns in court battles, where one parent might believe they’ve got a better chance of getting full custody of their human children if they’re the ones keeping the family dog.

There was even a case where a Canadian couple divorced, and one spouse moved out of the country, leaving his dog behind with his ex-wife. Upon his return, he began campaigning for custody access to the dog, and eventually the judge determined it would suit the best interests of the dog to be with both “parents”, and the couple began alternating one week each on and off with the dog.

Another Canadian case saw a couple fighting over who actually owned a dog, because one of them had paid for it but the other one said it was a gift. The judge declined the request for joint custody and claimed the buyer was the owner. This same couple spent thousands of dollars in legal fees just to determine who would keep the $100.00 pet.

Creating a prenuptial agreement will prevent arguments like who gets to keep the pets from springing up during a divorce, and pet custody is only one of the many things they can cover.

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By heather - Last updated: Tuesday, March 16, 2010
Filed in Divorce, Prenuptial Agreements • Tags: , , ,