Blog Archives

Post-Nuptial Agreements Now, Too! by Phil Runyon

8/26/2013

Post-Nuptial Agreements Now, Too!

Remember when I went on and on awhile back about pre-nuptial agreements and how they absolutely positively have to be negotiated and executed well before the nuptials are spoken? Well anyhow, you can forget about all that.

That's because our resourceful Supreme Court has just pronounced that it's legal after all to enter into a post-nuptial agreement. In other words, even if you got too wrapped up in the wedding planning to ink the agreement before the big day, now you can still do it after the honeymoon.

As with the pre-wedding type, there are a few nagging requirements: The agreement needs to be fair and reasonable; it can't be the result of fraud or duress; and it has to include a full disclosure of each party's assets, so each will be clear about what's being given up in the process.

Then, if all the T's are crossed and I's are dotted, the result can include a waiver of any other rights to your property if the bonds of
matrimony don't take or if it results in your demise. That's pretty significant because up until now, if you divorced (still about 1 in 2 odds) or if you wanted to disinherit your spouse (banish that thought!), you couldn't predetermine the outcome.

That is, after the wedding vows were spoken, even if you decided what each of you would take away in the event of a breakup - maybe you the FL condo and (s)he the ski lodge - it wouldn't be binding when the split
occurred. And even if your will left your betrothed little or nothing - because (s)he had plenty of her/his own stuff - there could still be a claim to a pretty hefty share of your stuff anyhow. These new agreements will allow you to decide those issues ahead of time, and then go your separate ways, once and for all, in peace. OK, maybe peace is a bit much, but you get the idea.

Posted 08/26/2013

Still More Real Estate by Phil Runyon

8/9/2013

Still More Real Estate

Before leaving the subject of real estate transactions, here are just a few more tips that might be helpful when the time comes.

If you're working with a Realtor - whether as seller's or buyer's agent (but not both, I hope) - your purchase and sale agreement will likely consist of filling in the blanks on the agent's standard form. It's not a bad form at all and has been refined many times over the years, but it has the tendency to lull you into thinking that if you complete all the blanks to your liking, you're home free. Home free is a great place to be, but you want to make sure the agreement is leading you there.

What I'm primarily talking about is the section on the form for "Additional Provisions", where there aren't any guidelines at all, but where something else may really need to be added. Examples? OK, let's say you want this home to double as an office - very common these days. Most towns have zoning ordinances that either restrict home occupations or home-based businesses to certain districts, or at least require some form of approval. If it's just you in front of a computer screen, no one would likely know or care, but you might need to be sure your electronics would have good service there. Plus, maybe you need regular deliveries, or to hang out a sign, or have customers or clients come see you. In that case, there may be off-street parking requirements or limits on the kind of flashing billboard you can erect. Before you get locked into a purchase that doesn't take any of that into account, you'd want to add a provision that gives you time to check out the requirements and get any necessary approvals. Oh, and if you don't get approved, you might want the right to get your deposit back and have a chance to move on to a happier home.

Not your scenario, you say? How about this one. Your business career has thrived and now you want that stress-free second home on the lake. And you've always wanted that nice ski boat, a little fishing skiff, a sailfish, maybe a canoe and a couple of kayaks, even a SUP (ask your kids). The place that's perfect has a seasonal dock, but you want something larger that you don't have to pull in every fall. That usually requires State approval and can be hard to come by. You'd want your agreement conditioned on getting the necessary go-ahead, and you might want to sail off to another lake if you can't make it happen. If it's not there in black and white, the seller won't want to give back your deposit.

Other conditions that might be critical to the deal could be getting approval to add on for your mother-in-law, getting a neighbor to let you cut some trees for a view, or confirming that the town will plow the road in the winter if you plan to convert that rustic cottage into a year-round home. You can probably think of a lot of others that might be significant for you. The key here is not just to think about them, but to make sure they're in there with the financing and inspection terms. If they're left out, it won't matter how important those issues are to you; the seller will say, thank you very much for that deposit, and sell the property to someone else.

One final comment - and this is important whether you're in the real estate market or not. Most [non-real estate] contracts are legal and enforceable even if not in writing. The problem is proving an oral contract that's just floating out there in the breeze. Your rule of thumb should be this: if it's something that would hurt to swallow - financially or otherwise - then put it in writing. People don't do it because they don't want to insult their family members, friends or neighbors by making it seem like they don't trust them. That's not it, but people's memories and understandings differ and morph, particularly as more time goes by. And the written thing doesn't have to be full of "whereas" and "now, therefore"; it just needs to clearly say what's important. If it does, you may not be home free, but you'll be on the road there.

Posted on 08/09/2013

Runyon Law Office, PLLC

Post-Nuptial Agreements Now, Too! by Phil Runyon

Post-Nuptial Agreements Now, Too!

Still More Real Estate by Phil Runyon

Still More Real Estate

Archives

Categories