Law Office of Joanne Kleiner

divorce agreement

Mar 07

The Key Differences Between Separate and Marital Property

How to Classify an Asset for Property Division Purposes

You may believe that you are at risk of losing half your belongings if you leave your spouse. However, this isn’t necessarily the case. Instead, you generally only risk losing a portion of the assets held inside of the marital estate.

What Is the Marital Estate?

Generally speaking, any assets that are acquired during a marriage are considered to be part of the marital estate. This may be true even if only one person’s name is on the deed or title to the asset. For instance, if you buy a home with your spouse, you generally have an ownership interest in that home even if it is held in your spouse’s name.

It’s also worth noting that price appreciation that occurs in a separate asset after marriage becomes official may be part of the marital estate. For instance, let’s say that you own a home that is worth $100,000 on the date of your wedding. Let’s also say that the home is worth $200,000 when your divorce becomes official.

Your spouse will likely be entitled to a portion of the $100,000 in price appreciation that took place while you were married to them. It’s worth noting that they would be responsible for paying capital gains taxes on any profits that they received from selling a joint asset obtained in a divorce settlement.

What Is Commingling?

Commingling can occur in several different ways. For example, if your spouse deposits money into your personal bank account, that asset may now be considered joint property. The same may be true if your spouse used their money to make repairs to your home, car or other property. Separate assets may become joint assets because you failed to keep accurate records of when they were acquired and who paid to obtain or maintain them.

Tips for Retaining Control of Property After Getting Married

The use of a prenuptial agreement may make it easier to exempt property from being distributed to your spouse in a divorce settlement. Such an agreement may stipulate that your business, home or other property is to be classified as separate property. A divorce lawyer may be able to help you draft a prenuptial agreement that is likely to hold up under scrutiny.

If you aren’t able to create such a contract before your wedding takes place, you can draft a postnuptial agreement after your marriage becomes official. Regardless of when this type of agreement is executed, it’s important to allow your spouse to review it with their own attorney. This may help to ensure that the document won’t be invalidated based on a claim that it was signed under duress.

Putting assets into a trust may also be an effective way to retain control of them after a divorce. In most cases, property held in a trust is considered to be kept outside of the marital estate. Of course, your spouse may challenge the validity of the trust, and it’s possible that a judge will nullify it in the event that the document is not structured properly.

Certain Assets Won’t Automatically Become Part of the Marital Estate

If you received an inheritance while you were married, it remains a part of your separate estate. The same is true of anything that you received as a gift from your spouse, a friend or a family member. Of course, these items can become joint property if they are commingled, which is why it may be best to keep them in a separate account or place them in a trust.

If you need the assistance of a divorce lawyer, you’re encouraged to contact the Law Office of Joanne Kleiner at your earliest convenience. You can call our Jenkintown office by dialing (215) 886-1266, or you can fill out and submit the contact form located on our website.

Jan 23

Here’s Why Married Couples Delay Divorce Until the New Year

Reasons to Put Off Divorce Until New Year Rolls Around

Divorce agreement sales from March to June 2020 rose 34% from the same three-month period in 2019. The American Family Survey, a national survey held in part by Brigham Young University, found that 34% of married people said the COVID-19 pandemic increased stress in their marriages. Despite these alarming statistics, early state reports indicate that year-to-year divorce rates are down — are couples waiting for 2021 to file for divorce?

Keeping Children in Mind

Children look forward to Christmas as the most magical time of year. One poll found that 48% of respondents under the age of 18 consider Christmas their favorite holiday. Although it might feel like kids don’t value Christmas for the right reasons, children should never be robbed of a great Christmastime experience.

It’s true that children in split families can look forward to two sets of presents. After a divorce, parents typically need months to get settled into their new lives. Initiating divorce proceedings before the new year can ruin the magic of Christmas for children. This is arguably the No. 1 reason why waiting for the new year is the best time to get a divorce.

Holidays Are Filled With Emotions

As you already know, kids love Christmas. Many adults look forward to the holidays, too. Thanksgiving, Christmas, and New Year’s Eve offer back-to-back-to-back opportunities to take time off from work, visit family members, and enjoy countless home-cooked dishes.

Starting in early to mid-November, society collectively gears up for the holidays. City governments put up Thanksgiving and Christmas decorations around town. Advertisers run ads that mention the holidays. Social media fills up with mentions and pictures of fun, family-friendly holiday activities.

Even if you personally don’t celebrate these holidays, there’s arguably no way to avoid festivities. The holidays are typically associated with happiness, joy, and cheer, and breakups and divorces during Christmastime can evoke particularly negative emotions.

By agreeing to postpone divorce until the new year, you set yourself up for a much less stressful holiday season.

End-of-Year Divorces Can Lead to Unexpected Expenditures

The holidays are inextricably tied to consumer spending. Since you like making family members, friends, and co-workers feel special, you want to buy them nice gifts. Although you might not spend too much on each gift, the costs eventually add up.

According to the National Retail Federation’s annual holiday spending survey, the average American shopper plans to spend $998 on gifts and other holiday-related items.

Well over half of all married couples use the same bank account. It’s easy to unexpectedly spend more money than you initially planned during the holidays. During a divorce, however, soon-to-be ex-spouses may go on spending sprees just to spite their partners.

If you’re contemplating when to get a divorce, saving money is likely one of your greatest concerns. Avoiding a divorce around Christmas is a surefire way to save money.

Splitting Year-End Bonuses

Many workers receive year-end bonuses as a means of incentivizing high performance. Typically, employers need end-of-year sales data to determine whether employees receive bonuses or not.

If you receive your bonus before getting divorced, your spouse will likely be entitled to half of it. In most cases, after you formally file for divorce, you don’t have to share your earnings with your partner. If you’re expecting a big bonus, that’s yet another reason to delay your divorce until January.

Let a Divorce Lawyer Help You Through Your Divorce

Divorce is usually a difficult process. Fortunately, waiting for the new year can make divorce a little bit easier. Keep these benefits of delaying divorce in mind while assessing your own situation.

If you’re currently considering divorce or have recently been asked for one, we’d love to speak with you. Here at the Law Office of Joanne Kleiner, we focus on family law and divorce proceedings. Although divorce is notorious for being a long, difficult process, it doesn’t have to be. Our goal is to make the divorce process as seamless as possible.

The Law Office of Joanne Kleiner is located in Jenkintown, Pennsylvania. To schedule a confidential consultation with divorce lawyer Joanne Kleiner, give us a call at (215) 886-1266 today. You can also fill out our secure online intake form to get started.