Regardless of the specifics of your family situation estate planning is something to take seriously and be proactive about. However, when you are a parent who is divorced and you intend to remarry you are probably going to want to engage in some rather advanced estate planning that requires additional expertise.
We live during an era when divorce is quite common. Statistics on the subject vary, but somewhere in the vicinity of 40% to 50% of marriages are ending in divorce these days, and most of these people remarry. In the majority of these cases children are involved and blended families are the result.
Premarital agreements have gotten a bad rap in some quarters, but they serve a very useful purpose. One of the criticisms is that asking your respective new spouse to enter into an agreement dividing personal property going in is a sign of a lack of commitment. This is rather one-sided thinking because you may in fact be motivated by the desire to protect the interests of your children more than anything else.
There is no guarantee that your spouse will make sure that your children are provided for in the manner that you see fit should you pass away first, and of course your marriage could end in divorce. Premarital agreements are simply practical tools that protect all parties concerned.
Post-marital agreements can be useful in legacy planning as well. Sometimes a married couple can disagree about the correct way to utilize or earmark community property. These matters can be put to rest by simply entering into an agreement that divides the property between the two parties. Each person can then go forth and have the autonomy to create an independent legacy plan.
If you’re interested in the possibility of executing a marital agreement, simply take a moment to contact an estate planning attorney to arrange for an informative consultation.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.