Agreement Separation of Property: What You Need to Know
One of the most crucial decisions that married couples have to make is how they will divide their property in the event of a divorce or separation. Some couples choose the legal doctrine of community property, which means that all assets acquired during the marriage are equally owned by both spouses. However, others opt for the agreement separation of property.
Agreement separation of property is a legal arrangement where spouses agree to keep their assets separate during the marriage. This means that each spouse retains ownership and control over their individual properties, including income, financial assets, and real property like houses and land. Any property acquired during the marriage is also owned individually by the spouse who acquired it.
The main advantage of an agreement separation of property is that it provides more protection to each spouse`s individual assets in case of a divorce. In a community property state, both spouses would have equal ownership of all assets in the marriage, regardless of who earned or acquired them. In contrast, an agreement separation of property allows spouses to keep pre-existing assets and any assets acquired during the marriage separate, which can be particularly beneficial in situations where one spouse has significantly more assets or income than the other.
However, there are also some potential drawbacks to an agreement separation of property. For example, if one spouse runs into financial trouble, creditors may be able to seize assets owned individually by that spouse, including any assets acquired during the marriage. Additionally, if spouses do not keep careful records of who owns what, it may be difficult to determine who owns what property in the event of a divorce.
To set up an agreement separation of property, couples usually need to create a written agreement, which outlines their respective properties and the terms of how those properties will be divided in case of a divorce or separation. This agreement must be signed by both spouses and notarized. It`s also important to update the agreement regularly, especially if either spouse acquires significant new assets or if there are changes in the marriage.
In conclusion, an agreement separation of property can be a good choice for couples who want to keep their assets separate during the marriage. However, it`s important to carefully consider the potential drawbacks and to create a written agreement that outlines clear terms for how assets will be divided in case of a divorce or separation. Seeking the advice of a lawyer experienced in family law can help ensure that the agreement is properly structured and legally sound.