property division

A prenup can simplify Massachusetts property division

When a couple is preparing to begin a life together as husband and wife, many consider drafting a prenuptial agreement. Once considered to be solely in the realm of the rich and famous, these contracts are becoming commonplace within many marriages, regardless of wealth. A prenuptial agreement can greatly simplify the property division portion of a Massachusetts divorce, in the event that a marriage does not work out. In order to create a prenup that will withstand any future legal challenge, there are a few necessary precautions that should be taken at the onset. A prenup should be clearly drafted and easy for all parties to understand. It should outline a fair distribution of assets in the event of a divorce, and not make any extreme or unbalanced demands. Finally, a prenuptial agreement should be just that: an agreement, not a condition of marriage. Should one party try to challenge a prenup, the matter will likely go before a judge. Judges will review the agreement to ensure that it was created as an outline of how assets are to be divided in the event of divorce. Stipulations or conditions that are unfair or heavily biased toward one party are likely to be thrown out. In the event that the entire document is found to be invalid, the property division process will revert back to the guidelines of the state. The best way to create a prenuptial agreement that is fair and enforceable is to work together to structure the Massachusetts

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Property division can lead to Massachusetts condo disputes

As some Massachusetts residents know, having a vacation condo is a luxury couples enjoy. However, when a couple decides to divorce, the shared condo can become a thorn in the property division process. If the condominium is not the primary residence, then charges and fees associated with the shared property can complicate property division. Condominiums are not often the main place of residence for many couples as they are more commonly used as vacation spaces or rental property. Nevertheless, fees must be paid to building owners to maintain the space. When a couple is divorcing, building owners can often be burdened with a lack of fee payment. If the issue of who will be sole owner of a condo is unclear, one party may not wish to continue to pay maintenance fees on a place they do not live and may not own after the divorce. Building owners may face their own legal issues if a divorcing couple cannot come to an agreement about a shared condo. Owners may need legal paperwork should one individual wish to keep the other title holder out of the shared space. Additionally, if the parties cannot come to terms with fee payments, building owners may have to take action for nonpayment, which could include eviction or suing for compensation. Property division can become exceedingly complicated when third parties are involved. Making the divorce and division process as painless as possible is usually the route most parties would like to take. Understanding the rights and

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When to seek help in the property division process

Just as no two marriages are ever alike, so it goes with divorce. While reality television shows would have us believe that every divorce is embittered and nasty, in the reality version of reality there are many Massachusetts couples who end their marriages amicably. However, when it comes to the process of disentangling lives and finances, there can be such a thing as being ‘too nice,’ especially during the property division portion of the experience. Some spouses feel guilty about ending their marriage, especially if the other spouse is not ready to throw in the towel just yet. Other times, there have been lapses of judgment that lead one party to carry feelings of guilt. When considering how to end a marriage, the best course of action is to look at the process as a business transaction, leaving emotions completely out of the matter. For spouses who are considering filing for divorce without an attorney, it is important to understand what is at stake. The decisions made throughout the divorce process can have lasting effects, especially financial issues handled during the property division portion of a divorce. Having solid legal counsel is not an aggressive stance against one’s former partner, it is simply an acknowledgment that divorce is a complicated legal matter that requires a comprehensive understanding of Massachusetts law. When preparing to divorce, the best approach to take is to make every effort to protect one’s legal interests, and assume that one’s partner is going to do the same.

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Spouse’s affair may not factor into property division

When a Massachusetts spouse has been wronged, the first impulse is often an emotional response aimed at extracting revenge. When we are hurt, embarrassed or surprised by the infidelity of a husband or wife, we often react in a manner that is not rational or in line with our long-term interests. We want the choices of the adulterer to play a role in the property division process. Unfortunately, however, adultery often plays little to no role in the Massachusetts divorce process. Furthermore, attempting to make infidelity into a central issue within a divorce can actually lead to negative consequences for the wronged spouse. The most common way for this to occur involves accruing hefty legal fees for the time and effort spent on proving that adultery made a significant impact on the marriage. This may sound odd, considering that cheating is often the central reason for a divorce. However, consider the following scenarios. If a spouse feels certain that their partner spent a considerable amount of marital assets on funding the affair, it is possible to bring those allegations into play within the divorce process. However, proving this assertion requires a great deal of research and documentation. At the end of a lengthy and expensive process of discovery, it is entirely possible to gain an award that does not even cover the cost of proving that dissipation of assets took place. Another issue involves allegations of abuse. Unless there is clear and convincing evidence that abuse took place, it can

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Property division issues for high-earning women who divorce

Times have changed, in Massachusetts and across the nation, and the days in which men were the breadwinners and women were the house makers are long gone. While there are still some households that adhere to this once-standard social norm, many others are comprised of two working spouses. In some cases, women bring in the bulk of the household’s income. For such women who face divorce and the inevitable property division process, there are a number of considerations that come into play. Divorce involves the division of marital assets, which can become complicated in some families. As with any financial matter, the best approach lies in proper planning. To that end, prenuptial or postnuptial agreements are one of the best ways to protect assets in the event of a divorce. Another savvy financial move is to maintain any inheritance money or assets separately from marital funds. Keep such assets within the name of the receiving party, and do not use inheritance funds to pay for jointly held debt. Another issue concerns business interest. For women who own their own business, much of the hard work and effort put into making that business profitable can be lost through divorce. There are ways to safeguard against these types of losses, including the use of trusts or other legal agreements. These avenues should be explored before the need arises to protect one’s business during a divorce proceeding. For women who have achieved a high level of success in the workplace, the best way

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Investing the proceeds from property division

Once the dust settles and the papers are all signed, many newly divorced individuals find that they have a new set of decisions to make. Among these is what to do with the proceeds gained from the property division process. For Massachusetts resident who are emerging from divorce, it may be tempting to put off making additional decision, especially if the divorce was contentious or lengthy. However, letting one’s divorce proceeds simply sit in the bank is never the most financially savvy option. The money that comes as a result of divorce is best put to use in building financial security for one’s future. Whether that means establishing emergency savings, investing in a retirement plan or purchasing a mix of stocks and other investment vehicles, the choices made at this stage can greatly affect one’s finances in the years to come. In addition, there is a great deal of benefit gained from taking a proactive stance toward one’s finances, especially for parties who were not involved in the financial management aspects of the former marriage. Retirement planning should play a role in how divorce proceeds are allocated. In some cases, divorced spouses who were married for at least 10 years can claim benefits from the Social Security record of their former spouse. This is not, however, a comprehensive retirement plan, and should be considered as a means of supplemental retirement income only. The best method of determining how to invest for retirement is to asses existing finances and then estimate

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Retirement funding is key to property division negotiation

When considering issues of property division during divorce, it is imperative to include retirement funding. It is easy to become bogged down by fighting over the family home or issues associated with the division of tangible property. However, in many cases the Massachusetts spouse who emerges with the retirement savings is far better prepared for future financial success than the party who keeps the house. Property division can be far more complicated than making a simple list of real estate holdings and shared belongings. Many former spouses who fail to give this topic proper attention during the divorce process find themselves struggling to fund their retirement when the time comes. For some, the ability to claim against the Social Security record of a former spouse becomes a central issue. While it may be possible to receive Social Security benefits based on the earning record of a former spouse, there are certain requirements that must be met. Chief among these is the requirement that the claiming spouse remains unmarried. The only exception to this lies in cases in which the former spouse is deceased and the surviving spouse did not remarry until after the age of 60. If the surviving spouse is disabled, he or she can claim survivor’s benefits if they remarry after the age of 50. When considering issues related to property division, it is important to understand that the decision made during divorce negotiations should focus on long-range plans. Retirement funding should play a role in that process,

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Tax consequences for older Americans who divorce

When a Massachusetts couple over the age of 50 makes the decision to end a marriage, the issues they face are often very different from a couple in their 20s or 30s. As we approach retirement, our financial goals change, and financial planning becomes a more pressing need. As a result, baby boomers who are calling it quits should take the time to ensure that they are adequately prepared for the tax consequences and other financial repercussions of divorce. Tax concerns are usually a primary concern for divorcing spouses. Couples who have been together for a long time have grown accustomed to their tax burden, and have effectively planned around that expense. Divorce can bring drastic changes to each spouse’s tax obligations, however, and should be planned for before the divorce settlement has been reached. For example, the decision to keep or sell the family home has significant tax ramifications. If one spouse plans to remain in the home, he or she will take on the costs of maintaining the property, but will also get the tax deductions associated with home ownership. The spouse who walks away from the property may have a lower monthly living expense, but will also lose all homeownership tax deductions. Another consideration involves cases in which the couple decides to sell the home. Selling a home in a year that the owner can still file as married can make a great deal of difference in the bottom line, as the current tax code allows for

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