Business Law Class Chapter 31 Marriage Law Legal Rights amp Business Why is this a financial issue Couples and Money 31 of all people in a relationship had lied to their partner or spouse about money ID: 189467
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Council Rock School District
Business Law Class
Chapter 31
Marriage Law
Legal Rights & BusinessSlide2
Why is this a financial issue?Couples and Money
31% of all people in a relationship had lied to their partner or spouse about money*
Impact on Finances
58% of them hid cash54% of them hid a purchase34% of them lied about finances, debt, money earned
30% of them hid a statement or bill15% of them hid a bank account
*NEFE Personal Finance Survey, May
2015 Slide3
Major Impact on FinancesCouples and
Money68% of people say a current or past relationship was affected by financial deceptions
67% of them say it caused an argument42% of them say it caused less trust in relationship19% of them say it led to separation of combined finances16% of them say it led to divorce
15% of them say it caused them to become closer/grow together9% of them say it causes less privacy in relationshipSlide4
Bell RingerDoes anyone know the origin of using a ring as an engagement token?
What are some other things you know about marriage customs and laws?Slide5
The Marriage Contract
Agreement containing consideration between two parties who have the capacity to contract, by mutual consent for a legal purpose
(promise to give up legal right to remain single)Discuss changing laws(DOMA): Defense of Marriage Act- Federal lawSigned into law by President ClintonBarred recognition of same-sex partners as “spouses”Section 3 of the "Defense of Marriage Act" has been declared unconstitutional by the US Supreme Court. Committed same-sex couples who are legally married in their own states can now receive federal protections - like
Social Security, veterans' benefits, health insurance and retirement savings.Slide6
The Marriage Contract is Business Related
Marriage involves many decisions and responsibilitiesName ChangesSpousal SupportPrivileged communicationThe law considers certain relationships private and confidential like Doctor/Patient, Lawyer/Client
InheritanceAutomatically entitled to a share of the deceased’s estateTax Breaks from GovernmentFile Joint Tax returnsSlide7
The Marriage ContractIt is a
Civil Contract that comes into existence when you become engaged
(a promise to give up the legal right to be single)Under common law you could sue if one party breaks off the engagement Question: Who gets the ring?Slide8
Rights and DutiesMarriage Contracts change your legal status by agreement
Gives both Husband and Wife new rights and dutiesIntended to provide protection for both parties
Living together doesn’t give you this special protectionSlide9
Rights and Duties
Right to support
by your spouse when necessaryRight to inheritance from deceased spouseStatutory 1/3 Rule Share v. “Last Will” ShareOne day or 100 years… Doesn’t matter
Right to property if the marriage endsRight to compensation to continue your standard of living if the marriage ends
Right to file a joint income tax returnSlide10
Rights and DutiesMany employers also give certain rights to their employee’s spouse
Insurance coverage, death benefits, other rights etc…This duty cannot be relinquished, even by agreement
Martial DUTY (explained)Such as the duty of each spouse to care for, support and protect the otherAlthough these terms may seem vague, they have been clarified by courts in written precedents over the yearsIn addition, each has a right to the company, cooperation, society, sexual relations, conjugal affection, love, comfort, and solace of the other.
This bundle of rights is often called the “right of consortium.” Slide11
Premarital or Prenuptial AgreementBefore marrying:
People can enter into contracts concerning the real and personal propertyThis set forth how their property will be handled if marriage ends by death or divorce
Why don’t more people enter into a pre-nuptial?Slide12
Premarital or Prenuptial AgreementMust be in writing and signed by both parties
Usually Video RecordedMust make honest statements and disclose all assets to each otherWhat are some advantages and disadvantages of prenuptial agreements?Slide13
Premarital or Prenuptial Agreement can cover…Rights and Obligations of each party regarding any property
Rights to buy, sell, manage, or control real or personal propertyDisposition of real and personal property upon separation, death, or divorceChange or elimination of supportSlide14
Pre-Nuptial
Agreement written for what you know today!
What is often included?Car, possessions, money, and anything else of real value
What happens if your spouse wants a divorce, leaves, or cheatsHow long will agreement last?What about children?Slide15
Planning a Marriage vs. Problems-ahead?
Larry Dunn, 25 and
Tisha Palo, 27, plan to be married. Larry, a college graduate, earns $48,000 a year as a salesperson. Tisha
has an associate (two-year) degree and earns $34,000 a year as a paralegal. Larry rents an apartment and owns a new car and a boat. Tisha
recently bought a condominium and has a four-year-old car. They would like to have children, but Tisha first wants to finish college and go on to law school. Both agree that when they have a child, one of them will stay home for the first two to three years after the baby is born. Slide16
Planning a Marriage Problem
What issues should Larry and
Tisha discuss before getting married? Should they put their decisions on those issues in writing?
What reasons would you use to justify doing so?
Tisha would like to keep her maiden name. What does the law require in this regard? Do you think a married woman should keep her maiden name, take her husband’s name, or combine her name with her husband’s name?
What last name should the children have?Slide17
Prohibited MarriagesMarriage between relatives (Many states)
Consanguinity (blood) Affinity (marriage)
Consanguinity (Blood)
Mother/FatherGrandmother/GrandfatherDaughter/SonGranddaughter/Grandson
Aunt/UncleSister/BrotherNiece/NephewAffinity (Marriage)Mother/FatherStepmother/StepfatherStep-grandson/Step-granddaughter
Stepdaughter/StepsonStep-grandmother/Step-grandfatherMother-in-law/Father-in-lawDaughter-in-law/Son-in-law
Granddaughter-in-law/Grandson-in-lawMarriage can be voided and Child would be illegitimateSlide18
Prohibited MarriagesBigamy and PolygamyBigamy
– 2 spouses at the same timePolygamy – more than 2 spouses at onceMust be practiced in life for protections of religionMany states consider such marriages as illegal and a crime
If someone gets married without the knowledge of the previous marriage than on the death of the first spouse the second marriage becomes legalSlide19
The Requirements of MarriageEach state has its own laws regarding marriage
Age – 18 without parents consentYounger with parents’ consent, Court permission, if emancipatedWhat age do you think should be the minimum age for a person to marry with and without parental consent?
Should this age be the same for males and females?Slide20
Common-Law Marriage
STATES THAT RECOGNIZE COMMON LAW MARRIAGE: Only a few states recognize common law marriages: AlabamaColoradoGeorgia (if created before 1/1/97)
Idaho (if created before 1/1/96)IowaKansasMontanaNew Hampshire (for inheritance purposes only)
Ohio (if created before 10/10/91)Oklahoma (possibly only if created before 11/1/98)Pennsylvania (if created before 1/1/05)
Rhode IslandSouth CarolinaTexasUtahWashington, D.C.Slide21
The Requirements of Marriage
Common-Law MarriageIF YOU LIVE IN A STATE THAT DOES RECOGNIZE COMMON LAW MARRIAGE: You must: "hold yourself out to be married" (by telling the community you are married, calling each other husband and wife, using the same last name, filing joint income tax returns, etc.) This can create a common law marriage
Common law marriage makes you a legally married couple in every way, even though you never obtained a marriage license.Slide22
The Requirements of Marriage
Common-Law MarriageIF YOU LIVE IN A STATE THAT DOES RECOGNIZE COMMON LAW MARRIAGE: If you choose to end your relationship, you must get a divorce, even though you never had a wedding. Legally, common law married couples must play by
all the same rules as "regular" married couples. If you live in one of the common law states and don't want your relationship to become a common law marriage, you must be clear that it is your intention not to marry. Slide23
The Requirements of Marriage
Common-Law MarriagePennsylvania: A common-law marriage was established if, before 1/1/2005, a man and woman exchanged words that indicated that they intended to be married at the present time and they also held themselves out to the community as married (introducing each other as husband and wife, filing joint taxes, etc.).Slide24
The Requirements of Marriage (continued)Ceremonial Marriage – To be formal…must be declared as husband and wife in the presence of someone authorized by state law to perform marriages
Covenant Marriage – Counseling before and during marriage to resolve conflictsSlide25
The Requirements of Marriage (continued)Marriage License – a certificate that gives two people permission to marry
Waiting Period – Pennsylvania = 3 daysBlood Tests/Physical Exams. – tests for communicable diseases (AIDS, syphilis)Proxy Marriage
Use of various namesProvided NO fraud is committedSlide26
Community Property StatesCommunity Property
Defined: Most property acquired during the marriage (except for gifts or inheritances)—is owned jointly by both spouses and is divided equally upon divorce, annulment, or death.Division of community property may take place by item, by splitting all items or by values. In some jurisdictions, such as California
, a 50/50 division of community property is strictly mandated by statuteArizona CaliforniaIdaho LouisianaNevada New MexicoTexas Washington
WisconsinSlide27
Impact on Business
If you start a business before marriage, keep it going and the
value increases during marriage and then get divorced, your spouse may be able to claim part of the increase in the value as community property.
Most lawyers advise spouses to keep their business property and accounts separate. If they commingle it with community property, it can become community property should they get divorced.Slide28
Impact on Business
Bank accounts or brokerage accounts before marriage, if they are separateKEEP
all reinvest interest, dividends & capital gains put back into that accountDon't put your paycheck into it or use it to pay rent Gifts or inheritance, keep in a separate account in your nameOwn a rental property, don't use community income to pay taxes or make repairsSlide29
Impact on Business
Premarriage
debtCommunity-property states, any debt a spouse takes on before marriage remains that spouse's sole debt after marriage.Getting married does not your spouse responsibleEven if they help repay it, as long as they don’t co-sign the loan.But You could be affected in this way: If your spouse defaults on loan, the creditor would first look at separate property… if that wasn't enough, the creditor could try to get their half of any community property
Any debts taken on after marriage are generally community debts, and each spouse is responsible for the entire amount.Slide30
Questions?
Quiz NOW!!NO
Review!Notes Allowed!
Questions?Slide31
Class WorkQuiz- Open Notes FINAL is TUESDAY!!!
For Seniors Only!Exemptions Announced by Website