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Marriage Insurance

Ty Supancic

Most people understand the reason for insurance. We spend huge chunks of income each year on life, fire, and medical insurance, and newer types of insurance such as long term care. Consider viewing a Prenuptial (or Premarital) Agreement in the same way, as a kind of insurance policy. Why?

Parties facing divorce who have such agreements in place and abide by them, have helped to insure themselves against conflict, sky-high legal bills, and dissipation of valuable assets.

Who might need a Prenuptial Agreement (PNA)? Interestingly, it is not just people with large incomes or those who own several properties. If either of the parties about to be married have been married before, or if either of the parties have children by other relationships, a PNA is a necessity. If one of the parties owns a home, business, or a financial portfolio – in other words, if that person’s monetary resources considerably outweigh those of the other, a PNA is essential.

Once a couple has decided that they would like to make their relationship permanent, a discussion of finances becomes crucial. This is often difficult. Money is usually a sensitive issue in relationships and many times partners have divergent views.

Clear understanding and agreement should be reached on the management and disposition of all real estate, income streams, deferred benefits, and all other assets whether separate or community.

There are several key points to keep in mind. First of all, the agreement must be deliberately conceived and completely voluntary. Full disclosure of all assets and debits is required. It must be drawn up to give each party adequate time to carefully review. It is important that the agreement be just and fair-minded in order to insure that it will not be overturned in a legal challenge. To be safe, it is a good idea to video record the execution ceremony as evidence that it was signed voluntarily by competent parties.

At The Law Collaborative we help mediate, negotiate, and review Prenuptial Agreements and Post-Nuptial Agreements. Call us for more information or visit the relationship planning section of our website.

And don’t forget! Our Second Saturday Family Law & Divorce Workshop is coming up on Saturday, May 13 from 10AM to 12PM. To RSVP, call (818)348-6700.

Best wishes,

Ty Supancic, Esq.

The Law Collaborative, APC

5955 De Soto Avenue, Suite 125

Woodland Hills, CA 91367

T: (818)348-6700

F: (818)348-0961

info@thelawcollaborative.com

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A Dirty Word Or A Saving Grace?

PREMARITAL INSURANCE
By Ty Supancic, Esquire

I regularly help couples design and build foundations for the most important project in their lives. The work is long and involved and at times unpleasant, but I believe the results are worth it in the long run. We take the time to examine and investigate their dreams and circumstances, and using that information, we design and create a strong foundation together which will support whatever they chose to build on it. If what they build together fails sometime in the future, it will not be for lack of planning.

No, I’m not a contractor or an architect. I’m a family law attorney and the “foundation” I’m describing is a mediated premarital agreement.

“Premarital Agreement” and “Pre-Nup” are dirty words in the common vernacular, but I believe this is due to misunderstandings based on Hollywood propaganda and sensationalistic news coverage. Premarital agreements need not be unilateral documents forced by one spouse upon another. The alternative to the Hollywood stereotype, and the vast majority of the premarital agreements we draft in our office, is a premarital agreement reached by mutual discussions and assent to terms designed to support marriage and discourage divorce.

At the most basic level, people get divorced because they’re “unhappy.” Unfortunately, statistics tell us that divorce does not bring happiness. Studies reveal that most people are just as unhappy after their divorce as they were before it. But in addition to being “unhappy”, after divorce they’re also damaged; emotionally, spiritually, and financially.

Despite this reality, people get divorced anyway. Why? I believe people are “playing the odds” or gambling on a different future. People know what they have, and they think they’re unhappy. They don’t know what things will be like after their divorce, but they figure, “it can’t get any worse.” They’re wrong. They’re trading known circumstances for unknown circumstances on the misguided premise that things will be better. They seldom are. Remember the old Irish adage, “Better the devil you know than the devil you don’t.”

Read more…

A Serious Girl on Premarital Agreements

Originally posted on ASeriousGirl.com

PREFACE TO A PRENUP

Last week I mentioned how Mike and I have periodic romance-infused financial meetings, but I didn’t go into the how’s or why’s. We had our first financial meeting within a few weeks of getting engaged because we had to if were going to write a prenup.

The last time I told someone that Mike and I have a prenup, I promised myself I wouldn’t tell anyone ever again. But I’ve been thinking about it lately, especially after last week’s financial post, and the fact is that a prenup isn’t anything to be ashamed of. Our prenup is the reason we were debt-free less than a year after we married. Our prenup is the reason we have never had an argument about money. Our prenup is the reason I got to move with my husband to New York and live out one of my wildest fantasies. The last time I told someone we wrote a prenup that person grimaced as she said, “Why would you do that? Why would you marry someone you’re just going to divorce?”
“What?”
“Obviously if you need a prenup it’s because you know you’re just going to divorce the person.”
“What? No, it’s not. I don’t –”
“That’s awful, Tricia. That’s just awful. I’m really surprised.”

She was actually that appalled, I do not exaggerate. And she’s not alone in her feelings. Enough people have had that reaction that when she had it, I decided our prenup was something people just didn’t need to know about.

Except now I’m telling the entire Webisphere.

I’m working on learning how to stand up for myself. Today I’d like to announce that my husband and I wrote a prenup before we got married and contrary to what you might think it was not because we were rich or because we were planning on getting divorced. We had a lot of debt and our only assets were each other, but we sat down and we worked out the complications of our finances and in doing so, he learned how important it was for me to have the opportunity to run with my dreams. I learned how important it was for him to save money so that one day he could have an old sprawling house to fix up and build furniture for, with a treehouse in back for the grandkids and five big-headed dogs. And when I learned that, I knew I really did want to spend the rest of my life with this man, because no matter what happened between here and now, we had the same life goals.

Writing a prenup was a way to protect ourselves from divorce. Everyone has different feelings about money and no two people feel exactly the same way. Money is a tender, delicate thing that dances with pride and envy. It can be used to hurt just as easily as it can be used to help. A brilliant family lawyer once told me that money is the last thing couples talk about and the first thing they fight about. I was determined not to have a marriage that could be damaged because we never talked about money. You can’t write a prenup without talking about money, and so we used it as an opportunity to have a very honest and very real discussion that would go on to help us shape our lives. And it’s true, we could’ve just had the conversation without ever writing the contract, but the fun in writing the contract was including provisions like:

“Prior to filing for divorce, the parties must agree to a minimum of one hour of marriage counseling, once every week for twenty-four consecutive weeks. If, after twenty-four consecutive weeks of marriage counseling the parties still agree to divorce, either party may file the Petition without effect. If one party files for dissolution without completing the agreed upon counseling, that party agrees to pay the other party’s attorney fees and costs in full.”  (Except a lot fancier because it was translated into lawyer-speak.)

I really do believe that if both parties commit to marriage counseling for six months they won’t need a divorce. And if they really still want one, then maybe they do need it. However, if one person isn’t even willing to give counseling a shot, then they should pay the damn legal fees.