Are you ready to loose your inherited or hard earned wealth because you have been lax in property planning?
Divorce can prove to be extremely damaging if you have not managed your property related matters beforehand.
You must pay attention to property planning, so that after divorce you are not left with only a part of the property which was solely yours initially.
Community Property and Separate Property
Property is classified as:
Separate Property or Premarital Property
Property owned by a spouse prior to marriage is separate property. It is also known as community property. Premarital agreement outlines the premarital property planning clauses.
Community Property or Marital Property
Community property or marital property is acquired during the course of a marriage. Marital property (community property) includes all physical property and other assets acquired after marriage.
If effectively planned, property planning can save you time and money, which would otherwise be spent in a divorce court protecting your property.
In absence of property planning, the court may impose an agreement on its own if you and your spouse fail to reach any decision. Equal or fair division of property (as governed by your state laws) can be the starting point during the hearing of divorce case. This will result in a major financial setback.
Property Planning-Advantages:
Property Planning of Separate Property or Premarital Property:
- You can preplan a provision for your children in case of your death.
- Property planning will help you through your retirement days
Property Planning of Community Property or Marital Property
- Property planning of community property will result in the pre-decided division of jointly owned property (community property).
- Save money and time otherwise spent on lawyers to contest in the court.
