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MORE MILLENNIALS? MORE PRENUPS.

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Find out why more Millennials are getting prenuptials than any other generation to-date.

By: Anastasia Greer, Legal Intern at JUSTLAW

prenup

Besides their being billionaires, did you know what else Kim Kardashian, Jeff Bezos, and Mark Zuckerberg have in common? They all signed prenuptial agreements before marriage. And they are just a few of the climbing numbers of Millennials who are opting for prenuptial agreements before marriage.

Twelve years ago, Harris Interactive ran a survey to find that only 3% of those polled who were married or engaged had signed a prenuptial agreement before marriage. However, Harris took the same poll this year and found a staggering 12% of those surveyed opted for prenups. Specifically, the Harris poll found that 40% of Millennials (those ages 18 to 34) who were engaged and married had signed a prenup. In fact, the American Academy of Matrimonial Lawyers found 62% of its family law attorney members saw an increase in clients seeking prenuptial agreements since 2016. Michael Waters, the freelance writer for the New Yorker, attributes this to the fact that younger people have a more realistic, logical view of marriage as a financial contract. On Market Watch’s “Best New Ideas in Money” podcast, Waters found:

“Marriage is for love, obviously, but it’s also about personal assets, and I think that is really influencing younger people’s willingness and desire to sign prenups in the first place…”

Quentin Fottrell, Market Watch Managing Editor for Personal Finances, also attributes the trend to our current state of the economy – especially to issues surrounding debt: 

 

“These are all good things to know about before you get married because if you have to write a prenuptial agreement, you’re going to have to open your bank accounts and you’re gonna have to share your financial statements about your student loans, your credit card debts . . . and you’re going to have to be transparent.”

So why exactly are Millennials taking the prenup path? Many sources attribute this to factors including

(1) marriage later in life,

(2) mounting student debt,

(3) more women in support of prenuptials, and

(4) because Millennials acquire more assets before marriage.

No matter the reason, Millennials are embracing prenuptial agreements in light of our current day and age. 

According to Cheryl Winokur Munk of the Wall Street Journal, the “mindset change” of 

Millennials toward prenups “is even true for clients who don’t have significant assets to protect going into the marriage.” What is more, Millennials are seeking to incorporate new social and economic issues in these agreements – including social media presentation, student debt, and even rights to frozen embryos. Working together with your partner to craft a prenuptial agreement makes for a smoother transition into marriage. 

If you want to learn more about prenups to see if one is right for you, JUSTLAW offers a wealth of knowledge, resources, and services to create a fast, valid, and painless prenup! See here for more.

Schedule a free consultation today!

SHOULD’VE HAD A PRENUP: SCARY CELEBRITIES DIVORCE SETTLEMENTS 

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Author : Anastasia Greer, Legal Intern at JUSTLAW

These celebrities had a lot to lose in their divorces without a prenup in place. Don’t let this be you.

While 3% of average Americans who are married or engaged reported that they had a prenuptial agreement in place, these celebrities who did not fall within that 3% had a lot more to lose in their divorces. Read more below:

CELEBRITIES

  1. MADONNA

The iconic pop diva’s 2008 divorce from Guy Ritchie resulted in Ritchie receiving a $75 million dollar settlement of her nearly $490 million in net worth at the time. This settlement included the pub that the couple co-owed in London as well as their country estate in Western England. According to Rolling Stone magazine, the sum was “one of the highest divorce settlements in U.K. history.” What is more, a friend of Madonna’s told the Daily News that, because Madonna didn’t make Guy Richie sign a prenuptial agreement, he went after a chunk of her massive fortune.

  1. MICHAEL JORDAN

Before his current marriage to Yvette Prieto, basketball star Michael Jordan’s divorce after 17 years with Juanita Vanoy ended in a $168 million settlement. This was the most expensive divorce in the industry at the time. In addition to the near $246 million in today’s dollars, Juanita also received their seven-acre mansion in Chicago as part of the settlement. Safe to say that, following his divorce from Prieto in 2006, Prieto signed a prenuptial agreement in an effort to protect Jordan’s near $650 million left. Pockets were emptied and lessons were learned.

  1. STEVEN SPIELBERG

In 1989, the world-renowned director and his aspiring actress ex-wife Amy Irving ended on a note as sour as a $100 million divorce settlement after the napkin they’d attempted to write their prenup on was vacated by a CA judge for being illegitimate. Spielberg learned an expensive lesson about the importance of official documentation and the proper way to execute a prenuptial agreement.

  1. WENDY WILLIAMS 

The acclaimed talk television personality and ex-Kevin Hunter was entitled to half of William’s nearly $40 million dollar financial empire. As part of their divorce, the couple split the sale of their Livingston, NJ manor in addition to a $250,000 payment to secure new living arrangements throughout the mediation of the divorce in 2019. What about Williams’s nearly $1 million life insurance policy? She was also forced to hold pending the divorce proceedings a nearly $1 million life insurance policy in case she were to pass and her television show ends so that Hunter continues to get paid. The policy can still be reduced so long as it secures enough to cover the severance owed to Hunter.

  1. JOHNNY DEPP – AMBER HEARD 

While their recent defamation trial made headlines this year, the legal battles of actors Johnny Depp and Amber Heard began in 2017 when the couple filed for divorce – without a prenuptial agreement in place. At the time, Depp’s net worth was estimated to be over eighteen times the size of Heard’s and Heard initially sought $50,000 per month in spousal support in order to maintain the lifestyle that she had while she was with Depp. Contingent on their divorce settlement was Heard’s promised $7 million charitable donation. Their marriage of only 16 months turned into an over-6-year mess of controversy and litigation. The unfortunate airing of the couple’s dirty laundry from this point forward could have very well been mitigated if a prenuptial agreement was in place from the start.

  1. JAMES CAMERON

The Oscar-nominated director’s divorce from his ex-wife Linda Hamilton in 1999 was without a prenup. This resulted in a messy divorce settlement with a staggering $50 million awarded to Hamilton- a number incorporating the nearly $1.8 billion Cameron made from the movie Titanic during the course of their marriage. Had there been a meeting of the minds and prenuptial agreement beforehand, the large amount of publicity and litigation costs surrounding their divorce could have easily been avoided beforehand.

  1. IN RECENT NEWS: TOM BRADY AND GISELE BUNDCHEN 

Rumors spreading of the NFL quarterback and supermodel’s possible separation and pending divorce have left many wondering whether the couple had a prenuptial agreement in place before they were married in 2009. In terms of their independent wealth, Bundchen’s is found to be closer to $450 million, while that of her soon-to-be ex-husband is a lesser $250 million. We will have to see how the divorce pans out in terms of settlement dollars and whether the couple had a prenuptial agreement in place.

These celebrity divorces demonstrate just how preventative, effective, and necessary prenuptial agreements can be to preserve assets and amiability between exes. These celebrities were not the only ones who stood to benefit from having prenuptial agreements in place. You do too. However, finding a reputable attorney to help with the process is key.

JUSTLAW is here to help. Please call us at 1-888-587-8187 to start the process here today.

The Most Legendary Celebrity Prenups

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If you’re worried about asking for too much in your prenuptial agreement, take inspiration from celebrities. Celebrity divorces often decorate the headlines, but what can get missed is the prenuptial agreement. Stars often have a lot of assets and money to lose if their marriage ends, which is why their prenup agreements can be legendary.

Divorce rates are notably higher among celebrities, averaging around 50%. A premarital agreement can give them peace of mind if anything goes amiss during the marriage. And as you will see from these celebrities, not all have gotten a divorce; some are still happily married with a solid prenup guided by a lawyer.

Read on to learn more about the most legendary celebrity prenups and why you might want to consider your own prenuptial agreement.

What Is a Prenuptial Agreement?

attorney-writing-on-a-paper

A prenuptial agreement is also known as a prenup or premarital agreement. It is a legal document that sets out what will happen to a couple’s assets if they divorce. It can also include other agreements to stick to throughout the marriage, including family boundaries and romantic needs.

An attorney or lawyer will help with this prenuptial agreement. A prenup is a sensible choice for all couples. It protects both spouses, any inheritance money, your business, and any children from previous marriages.

Read on to learn some of the legendary agreements celebrities have.

1. Beyoncé and Jay-Z

beyonce-and-jay-z

Beyoncé and Jay-Z have been married for over 14 years and have three children together. They are estimated to be worth over $1.1 billion together, and they regularly revisit their prenup agreement. Their agreement covers custody, asset splitting, and trust fund details for their children.

Prenup Details

Beyoncé reportedly signed a prenup that agreed to give her $5 million for every child she had with Jay-Z. It also had terms such as receiving $10 million if the marriage ended before two years and $1 million every year if they stayed married for up to 15 years.

They also reportedly updated their prenuptial agreement to agree to 50:50 custody terms, trust funds for their children, and who will get what assets if they separate.

Although courts will not definitely enforce clauses related to custody and child support, having such language in the agreement could be considered evidentiary and of weight for a reviewing judge. That being said, at JUSTLAW, we generally recommend against trying to contract around custody and support obligations for children.

2. Keith Urban and Nicole Kidman

Keith Urban and Nicole Kidman 
LOS ANGELES, CA – JANUARY 21: Actor Nicole Kidman and singer Keith Urban attends the 24th Annual Screen Actors Guild Awards at The Shrine Auditorium on January 21, 2018 in Los Angeles, California. 27522_010 (Photo by Christopher Polk/Getty Images for Turner)[/caption]

Actress Nicole Kidman and singer-songwriter Keith Urban are worth over $200 million. They have been married for over 15 years and have had a prenuptial agreement. Their prenup agreement has specific terms relating to the couple’s history and earnings.

Prenup Details

Nicole Kidman reportedly agreed to give Keith around $600,000 for every year of marriage, but there is one provision. Keith Urban is in recovery from cocaine addiction, and the premarital agreement included the term that he would forfeit the money if he relapsed back into treatment. The terms also protect Nicole Kidman’s large fortune if Keith Urban was at fault for the divorce.

3. Justin Timberlake and Jessica Biel

Justin Timberlake and Jessica Biel

Justin Timberlake and Jessica Biel have been married since 2012. The stars both have substantial fortunes in their own right. But their prenup was one of the first celebrity agreements that included lifestyle agreements.

Prenup Details

One of their prenuptial agreement’s main details is the cheating clause. Rumors have circulated online about Justin’s infidelity over the years. The prenup includes the understanding that Justin will pay Jessica $500,000 if he is ever unfaithful.

Many couples opt for an infidelity clause, but it can be difficult to enforce because people have different definitions of what it means to be unfaithful. Any infidelity clause has to be clear and understood by both parties; otherwise, the matter may have to be settled in court. This can defeat the purpose of a prenup.

4. Brad Pitt and Angelina Jolie

Brad Pitt and Angelina Jolie split up in 2016 after two years of marriage. They had a 12-year history and six children together. Their prenup was followed as far as what details were released publicly about the divorce.

Prenup Details

One of the main details of the prenuptial agreement was that Angelia Jolie would get full custody of their six children if Brad Pitt got too close to another woman during the marriage. And Angelina Jolie did file for this during the divorce.

Other prenuptial terms included that the couple’s assets together would go to a trust fund for their children. This trust fund would be split equally in six ways for each child.

5. Michael Douglas and Catherine Zeta-Jones

Michael Douglas and Catherine Zeta-Jones

Michael Douglas and Catherine Zeta-Jones have been married for over two decades and share two children, along with Michael’s child from his first marriage. Their marriage secret? Well, it does include a serious prenup, with some lengthy terms.

Prenup Details

It is reported that Catherine Zeta-Jones receives $2.8 million for every year she is married. Whether that stays true after two decades is unconfirmed.  Plus, she would receive an extra $5 million if Douglas is ever caught cheating.

Many couples opt for an infidelity clause, but it can be difficult to enforce because people have different definitions of what it means to be unfaithful. Any infidelity clause has to be clear and understood by both parties; otherwise, the matter may have to be settled in court. This can defeat the purpose of a prenup.

6. Mark Zuckerburg and Priscilla Chan

Mark Zuckerburg and Priscilla Chan 

Facebook CEO and founder Mark Zuckerburg is a busy man, which is why before marrying in 2012, Priscilla Chan and Mark made an interesting relationship agreement. Their prenup is an example of how finances are not the only thing people want to protect when entering a marriage.

Prenup Details

They say time is priceless, and one of the notable details that have come out from their marriage agreement is precisely about this. Zuckerburg agreed to spend a precise 100 minutes alone with Priscilla every week, outside the office or apartment. They also have agreed to have one date a week.

7. Kim Kardashian and Kanye West

There was speculation about their detailed prenuptial agreement before their divorce, but their divorce papers have revealed more unseen prenup details. There have also been reports that Kanye’s lawyer does not want the prenuptial agreement to remain valid, which has led to some delays in their divorce proceedings.

So far, this has not been approved. Kim is reportedly arguing that their prenup helped them agree on everything before marriage and is asking Kanye to stop dragging out the divorce process.

Prenup Details

Any property Kim or Kanye purchased on their own would remain a separate asset. They also agreed to cover their own mortgages. Their prenup agreed to determine support for any child of the parties under California State law.

8. Jennifer Aniston and Justin Theroux

The couple’s prenup was described as “ironclad” at the time of creation to protect Jennifer Aniston’s fortune, which is estimated to be over $200 million. It meant that when they separated, Jennifer could have peace of mind that there was little Justin could contest.

Prenup Details

Their prenuptial agreement took time to create, with it including precise details to protect Jennifer’s fortune. It included terms to ensure that all of Jennifer’s assets were protected in the event of a split. This meant that the divorce proceeded pain-free, with both parties on the same page.

9. Britney Spears and Kevin Federline

Britney Spears and Kevin Federline

Britney Spears and Kevin Federline had a whirlwind romance, getting engaged just three months after beginning to date. However, Britney did not officially marry Kevin Federline until he signed their prenuptial agreement. Reports state that their first wedding was fake, as, at this point, he had not signed the deal.

Prenup Details

Their premarital agreement protected all of Britney’s assets, including everything she earned during their engagement period, so she could decide what to share at the time of divorce. When the couple divorced, Britney left her ex a reported $1.3 million. She also provided child support of $20,000 a month.

10. Tom Cruise and Katie Holmes

Tom Cruise and Katie Holmes

Tom Cruise and Katie Holmes’ relationship often made headlines online and in the press throughout their marriage, especially with Tom Cruise’s commitment to Scientology. Nothing changed at the time of their divorce, mainly due to the release of their prenup, which included some interesting financial details. Whether their prenup was followed during the divorce proceedings remains unclear.

Prenup Details

Their prenup promised $3 million to Katie Holmes per year she was married to Tom Cruise. It also promised child support for their daughter Suri and their mansion in Beverly Hills. Custody was determined at the time of the divorce proceedings.

Although courts will not definitely enforce clauses related to custody and child support, having such language in the agreement could be considered evidentiary and of weight for a reviewing judge. That being said, at JUSTLAW we generally recommend against trying to contract around custody and support obligations for children.

11. Khloé Kardashian and Lamar Odom

Khloé Kardashian and Lamar Odom

Reality star Khloé Kardashian and former NBA player Lamar Odom got married in 2009. However, their divorce was finalized in 2016. Khloé spoke openly about their prenup, stating that she believed every couple should have one.

Prenup Details

Their prenup included $500,000 to go to Khloé for every year of marriage. It also stated that she would get $2 million after four years of marriage. It also guaranteed her two cars as assets.

12. Blake Shelton and Gwen Stefani

 Blake Shelton and Gwen Stefani

Gwen Stefani married country singer and TV personality Blake Shelton in 2021. She learned from her first marriage to rock singer Gavin Rossdale, which didn’t have a prenup. This time, the couple spent several months making their prenuptial agreement before they wed.

Prenup Details

Both singers have experienced challenging divorces without prenups, which is why their prenup is meant to be “ironclad.” They are both worth over $100 million. So in the event of divorce, their fortunes will be protected.

13. Robert and Sheila Johnson 

Robert and Sheila Johnson 

Robert Johnson and Shelia Johnson had a famous prenup agreement, which ended up being needed when the couple divorced. Robert is co-founder of BET and America’s first African-American billionaire. After 30 years of marriage, the couple split in the early 2000s.

Prenup Details

The prenup made it through court and rewarded Shelia with half of the couple’s joint assets. She was paid around $400 million. Although they had a prenup, this was still recorded as one of the most significant divorce settlements in history, which demonstrates how much bigger it could have been without a prenuptial agreement.

14. Steven Spielberg and Amy Irving

Steven Spielberg and Amy Irving

Director Steven Spielberg and actress Amy Irving married in the ’80s. She was a rising star at the time, so they agreed to create a prenup. However, as this prenup wasn’t made official with a lawyer, instead reportedly being on a cocktail napkin, it was dismissed in court when they divorced four years later.

Prenup Details

So, the original prenup details remain a mystery on the back of a cocktail napkin. However, Amy Irving was rewarded $100 million, half of Steven Spielberg’s net worth back then.

The lesson? Make sure your prenuptial agreement is official!

15. Tiger Woods and Elin Nordegren

Tiger Woods and Elin Nordegren

After seven years of marriage, the couple divorced in 2010, after details of Woods’ affairs became public. The couple initially agreed to try to make things work, which included reworking the original prenup. However, in the end, Elin filed for divorce and benefited from the new prenup conditions.

Prenup Details

It was reported that Tiger Woods offered Elin a $5 million apology. He also added $55 million to the original prenup agreement.

In the end, Elin walked away with an estimated $110 million. Originally the prenuptial agreement stated she would receive $20 million if they stayed married for ten years.

16. Jessica Simpson and Tony Romo

 
Jessica Simpson and boyfriend Tony Romo are pictured after enjoying a recent dinner with the football star’s parents. The group met up at an Olive Garden restaurant in Janesville, Wisconsin on June 27. Romo was in the city to play in a golf competition and the couple were more than happy to pose for fans taking pictures. The couple walked into the restaurant holding hands but left by sneaking through the kitchen. Romo grew up in nearby Burlington.
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The couple never married, but reportedly Tony Romo wanted to include some shocking terms in their prenuptial agreement. A prenup can be a great way to check you are both on the same page and respect each other. In this case, Jessica thankfully said no to Tony’s conditions.

Prenup Details

During prenup discussions, Tony had some interesting demands. He wanted Jessica to pay Tony from her property $500,000 for every pound gained, over 135 pounds. This is why it is essential to get guidance from an attorney when creating a prenup!

17. Ice-T and Coco Austin

Ice-T and Coco Austin 

When we say some celebrity prenups are unique, we are not joking. Say hello to Ice-T’s prenuptial agreement. Reportedly American rapper Ice-T has some interesting conditions if the couple ever divorces.

Prenup Details

The couple married in 2002, and a lot of details of their prenup remain a secret. However, one provision that has been revealed is regarding Coco’s cosmetic implants. Apparently, if the couple ever divorces, Ice-T will take back her breast and buttock implants.

Create Your Own Prenuptial Agreement

Now you know some of the most legendary celebrity prenups. Although some of the conditions are unique, these prenups demonstrate how important prenuptial agreements can be. The prenuptial agreement does not only help the divorce process, but it can also help give peace of mind in your marriage and keep it secure.

It is not only celebrities that create a premarital agreement. Many couples create a prenup before marriage. However, it is important to find a reputable attorney to help.

JUSTLAW is here to help you. You can call us at 1-888-587-8187 or start the process online.

Spousal Support Provisions in Prenups

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Marriage. It is supposed to be happily ever after for the bride and groom.

However, not all marriages are built to last that long, as some end sooner than expected. The average marriage length for a marriage that ends in divorce is just eight years. In the latter scenario, couples can benefit from knowing they have a prenuptial agreement in place. Prenuptial agreements (also referred to commonly as prenups, premarital agreements and antenuptial agreements) between spouses allow them to protect certain assets.

Those who are not familiar with them may think they only pertain to wealthy couples. They don’t. Any couple can benefit from one, regardless of how much money they make or how old they are. Spousal support provisions exist in these agreements, which is why it is important for couples to know what they are and how they work. Here is everything you need to know about a prenuptial contract.

What Are Prenuptial Agreements?

Prenuptial agreements are contracts that both spouses enter and sign before they get married. Generally, the contract outlines rights to certain assets such as property, business ownership, and cash acquired before the marriage in case the marriage results in divorce. This agreement is usually designed to protect a spouse that has significantly more assets than the other spouse. A perfect example can be one spouse who has $10 million in their bank account plus a house worth $1 million while the other spouse has maybe $10,000 in their bank account and no other assets.

These agreements can also protect investments that were made by one party before the marriage. An example can be if someone had bitcoin back in 2011 and decided to include that in a prenuptial agreement. In this scenario, the couple could have ended up divorced eight years later, when the bitcoin was worth significantly more. That would be a case where the previous investment could possibly be protected for one spouse.

Spousal Support Provisions

Spousal support provisions are one part of a prenuptial agreement that will most likely need to be ironed out. This part of the agreement lays out how much financial support one spouse will receive in the event of a divorce. In other words, it is coming up with alimony terms before a divorce. In some cases, spouses may be asked to waive their right to spousal support outright and receive nothing if there is a divorce. Sometimes, there can be specific clauses in spousal support provisions that may restrict that spouse from receiving any support if they commit certain actions, like adultery.

In some states, it is not only against the law, but it can affect how much the cheating party gets in a divorce settlement. The question is, does it have any impact in New York? The answer is no, not really. It is not usually accepted anymore as pure grounds for divorce and while it is technically still a crime, the punishments are rarely enforced to the fullest extent of the law.

States That Enforce Provisions

Every state has a different set of divorce laws, which means some states are more likely to accept provisions laid out by a married couple than others. You should know which states are the most accepting of these provisions in advance of signing any prenuptial agreement.

The five states that are most known for enforcing these spousal support provisions are:

  • California
  • Illinois
  • New Jersey
  • Texas
  • Virginia

This means that whatever terms that you two agreed to when you formed the prenuptial agreement, it is more likely to stick in these states as long as it is considered fair and reasonable.

When Are Provisions Waived?

Of course, there is not always going to be a situation where the provisions that were previously laid out are going to be accepted in a courtroom. When it comes to these provisions, most courtrooms will review the agreement thoroughly and then determine if these provisions are fair to both parties or not. However, they are particularly reviewing if the provisions would cause hardship for somebody.

Let’s say there was only one spouse that was working throughout the marriage. But that spouse asked the other spouse, who does not work, to sign a prenuptial agreement. In this example, the first spouse asked the second spouse to waive their right to any spousal support in the event of a divorce.

The problem this creates is that the second spouse would barely have any savings of their own and may not have been working for the last dozen years. That would make it very difficult for the second spouse to land on their feet without some kind of spousal support. If there is overwhelming evidence of this being the case, a judge may rule to waive the provisions that were previously put in place. So, when you are creating spousal support provisions, you had better make sure that they are fair for both parties and that it does not create hardship for either party. Failure to do this can result in those provisions being thrown out.

Hire a Prenup Attorney

When it comes to prenuptial agreements and spousal support provisions, you need to have a professional prenup attorney on your side to go over every angle of the agreement with you. This can not only protect you from future legal trouble but also possibly add more to the agreement than what you already have.

Do you need legal counsel for your prenup? Schedule a free consultation with us today.

THE QUINTESSENTIAL POST-WEDDING CHECKLIST

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I do! Sure thing. Your marriage is now consummated…but that’s the easy part. Now comes the hard stuff!

Yes, that’s right. Getting married is relatively easy. You got your ironclad prenup, you had your gorgeous wedding with your dearest friends and family. You had your fun. Now it’s time to pour meaning into those vowels! Welcome to a new reality in your role as a husband or wife or life partner. Sadly, many couples go into marriage with very naive assumptions about what the vowels, and the contract of marriage, mean. In any given state in the United States if we were to stack the legal texts related to marriage up, on one top of the next, it would be floor-to-ceiling in even the grandest of homes. 

law-books-on-table

So while you’re still on cloud nine – maybe you’re even at Cloud 9 – it’s time to get your financial house in order, sync with your partner and tackle these imperative tasks that will keep your marriage on track for a life of success.   

DUH… GO ON YOUR HONEYMOON!

OK, this is the last easy one and pretty self-explanatory. Wedding planning is hard. Being surrounded by a bunch of people that want to hug and congratulate you is sometimes even harder. You deserve a break. Take a few days off and gather your bearings. Marriage is a blast and one of life’s true pleasures, but you deserve a break.  See you at step two.

GET A MARRIAGE COUNSELOR

Alright, you may consider this one questionable, but we firmly believe every couple can benefit from having an experienced, neutral third party to help them work through issues. Love and relationships are tricky, and you will obviously be highly emotionally invested in yours, so at times it’s difficult to step away from immediate frustrations and feelings and focus on solutions, and on the big picture. A preemptive counseling session a few times each year may help you avoid bigger problems later. Besides, it can’t hurt! 

CHANGE YOUR NAME ON ALL YOUR IDENTIFICATION CARDS AND ACCOUNTS

If you have taken a new name, fill out Form SS-5 for a new Social Security card and Form DS-5504 or Form DS-11 for your passport, then visit your local DMV to update your driver’s license. Once you have your new documents, make sure you’ve changed your name on all your banking, credit card and savings accounts. Also, you will need to consider, among others: 

  • Vehicle Title & Registration
  • Professional Licenses
  • Frequent Flier Accounts
  • Loyalty Programs
  • and much more…

TACKLE ESTATE PLANNING

A lot of couples get confused on this one. Prenuptial Agreements are about managing affairs and assets during marriage. Upon death, marriage legally ends. Trusts & Wills are about death. You probably should have both, and we’d consider this one a top priority for right after the wedding. If you need help, reach out to a JUSTLAW rep to schedule a free consultation.  Remember, without a will, you leave it up to a court to decide how to handle your estate.

Along with your will, make sure you have enacted a power of attorney, so your spouse can make decisions on your behalf should you become incapacitated.

MAKE A STRATEGY FOR THE BANK ACCOUNTS

Are you going to keep your individual bank accounts, or will you merge them into one?

Sharing a bank account can make paying the bills and building your rainy-day fund simpler. Just make sure you set expectations beforehand about saving, spending and bills. Also, don’t forget to set aside some “fun money” for zero-judgment, zero-guilt splurges for each of you.

For others, sharing an account might feel like losing financial independence. It might also cause stress if one spouse enters the marriage with obligations like student loans, child support, alimony and other debts that get pulled from a shared pool of money. If you want to keep accounts separate, it’s important to be on the same page about who pays for what — from utility bills to groceries.

Of course, you can always develop a hybrid system, where you both maintain separate accounts but contribute a portion to a shared savings account. Ultimately, there’s no wrong answer, you just need to talk it out.

UPDATE YOUR BENEFICIARIES AND EMERGENCY CONTACTS

In the event you have not checked your important records of late, you should investigate beneficiaries of your 401(k) and your old boyfriend could still be listed as an emergency contact. We often see couples where this information is quite dated and irrelevant. In addition, think about whose health insurance plan you’ll use by comparing cost and treatment options. If you’re the one making the switch, make sure the doctors you like are on the new plan.

Update your HR rep at your job with the latest information, and then verify all your retirement accounts, insurance policies and even bank accounts (these typically have something called transfer or pay on death) if you’re not making your spouse a joint account holder.

ADJUST YOUR TAX WITHHOLDING

As a married couple, you can either file taxes separately or jointly with your new spouse. Sometimes this will be covered by your premarital agreement. Any sound tax professional can help you decide the best route, based on your situation. However, whatever your tax status, you should update your withholding to indicate you are married. Contact your accountant if self-employed, or your HR department if you have a job, to change your status.

CONSOLIDATE INSURANCE COVERAGE

Life Insurance: If you don’t have life insurance yet, now is the time to consider it; you have someone else who, at least partially, depends on you financially. Talk with an advisor about how much and what kind is right for your situation. They can also show you how a policy can grow with you in the future (perhaps if kids enter the picture). And think twice about relying solely on your work-based policy, because if you lose your job, you will lose your coverage.

Health Insurance: This is also a terrific time to check your medical insurance coverage and choose the best choice between your plan and your spouse’s plan. Whilst you commonly can’t switch plans outside of the enrollment length, marriage is considered a qualifying event that qualifies you for a “special enrollment period” that generally gives you 60 days after the “lifestyles event” to make modifications.

Talk to your HR department, or if you have individual insurance, follow these directions.

Car Insurance: Check with your insurer to see if you can get better rates by combining policies and potentially enjoying a “marriage” discount.

PLAN YOUR FUTURE TOGETHER

With a lot of the aforementioned paperwork stuff out of the way, it’s time for some fun. How will you and your partner spend the rest of your lives together?

That is a huge question to answer, but it will generate so many exciting discussions with your spouse. Talk about when you both want to retire and the lifestyle you want to maintain. Talk about travel, or children, or second houses, or starting a business or a backyard pool. Take your bucket lists and merge them into a master list of things to do together. Your life as a married couple is a blank slate that you can fill in however you choose. How awesome is that?!

Mapping your destiny as a couple is highly pleasant; however, those discussions can even contemplate existential and financial objectives. Your dialogue with your new partner will help you each to get on the same, and right, page about your monetary priorities collectively. When you’ve built a vision for the destiny that excites you both, it’ll be a lot less difficult – and worthwhile – to stick to a monetary plan that gets you in which you want to head. Of route, if you’ve were given large dreams but the direction forward is a little hazy, a financial planner can help formulate a plan that supports you to “ever after.”

HAVE THE POST- MARRIAGE TAX TALK

The IRS treats unmarried individuals differently to married ones. Now that you and your spouse are legally combined, you need to decide whether you’re going to file together or continue to file separately (joint filing isn’t something mandated by law, though it’s generally recommended). Before deciding, consult your accountant to see what they advise for the two of you. Filing jointly has its benefits – primarily lower taxes, but also potentially spreading investment losses across both incomes – but also downsides, like having to share all the details of your finances and potentially complicated your spouse’s situation with any LLCs or other entities you maintain. 

 

How to Set Up Your Own Small Business (Sub-contractor)

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Welcome, and congrats on your decision to become an independent business subcontractor! More and more companies are looking to outsource their jobs to independent contractors, and as the freelance market continues to boom, customers will be increasingly expecting on-demand appointments and instant service. Becoming an independent, self-employed contractor is ideal for experts skilled in a profession, such as plumbing, electrical work, drywall, roofing, and auto detail. Subcontractors can take advantage of the flexibility of owning a business to meet these and other growing demands of both larger companies and customers. Here, we’ll dive into the main emotional, financial, and legal ideas to consider as you start your own subcontractor-based small business.

independent contractor

Emotional Considerations

Before even considering the financial and legal sides of starting a business, you need to make sure that you have the emotional strength to work through the challenges of being an entrepreneur. Handling 100% of the failures, in addition to the successes, can cause severe stress and anxiety. Therefore, for those who are prone to severe anxiousness or stress about their career, going the entrepreneurial route is not advised. However, if you determine that you have the mental fortitude to become an independent subcontractor, here is the best advice you’ll ever get for starting a business.

 

Financial Considerations

After considering your emotional capacity to handle the demands of entrepreneurship, the next step is to determine the initial funding for your business. Will you need family and friends to invest? Will you have outside investors? Do you have a savings stockpile to fund the enterprise yourself? It can be awkward and relationship-damaging asking family and friends for funding, especially if the business fails. Therefore, asking friends and family should be the last resort. If you are an expert with a long track record in a trade that is in demand, you likely have spent years building a reputation with clients. As a result of this hard work, you should feel comfortable that your business will succeed if you continue this excellence and are able to book business through your network of past and current clients. In this case, a business loan with a low-interest rate is an attractive option without having to rely on investors or large savings.

Once the business is up and running, you can take advantage of setting your own hours and taking in all the profits, two of the major attractions of owning a small business. In addition to these benefits, you can take advantage of tax deductions for small businesses on home expenses, driving expenses, and depreciation expenses on property and equipment that you cannot deduct from your personal taxes.

 

Legal Considerations

Once the emotional and financial considerations are taken care of, you can start handling the legal aspects of starting a business. For starting a subcontractor business, sole proprietorships are most common due to their cost-effective and streamlined application process. However, as a sole proprietorship, your personal assets will be intertwined with the business. In the case that the business goes bankrupt, you can be held liable to pay off the business’ debts. On the other hand, if you’re willing to cover the greater financial cost and longer application process of creating a limited-liability corporation (LLC), you will NOT be held personally liable for the business’ finances since you and the business are separate legal entities. For further advice on whether to form a sole proprietorship or an LLC, as well as have access to an entire team of small business lawyers for the fraction of the usual hourly rate for legal assistance, check out JUSTLAW’s legal plans for small businesses.

The Durable Power of Attorney…..What is it Good For?

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                                                              AUTHOR

James Barrett- DPOA

James Barrett, Esq.

James Barrett has been counseling clients for over 12 years in estate planning, prenuptial agreements and small business formation. He is a highly decorated veteran of the US Navy. He completed a 30-year career as an air traffic controller and union advocate. He has bachelor’s degrees from Florida International University and the National Labor College. He is a graduate of the University of Miami School of Law (2010) and has been in private solo practice ever since. He is admitted to the Florida Bar and his practice is virtual serving all the citizens of Florida.

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Everyday, You make significant decisions concerning your assets, healthcare, finances, and other important aspects of your life every day. But what if you were unable to do so for any reason?

A durable power of attorney (DPOA) is the most powerful tool in planning for physical or mental incapacity. It is much more powerful than a Last Will and Testament or regular power of attorney and should be considered a vital document in any estate plan. The DPOA is relevant at any age, but especially necessary for older people who are more susceptible to mental deterioration. Problems begin when a person is incapable or unable to make financial decisions for themselves. A person may be unable to make these decisions because of the onset of dementia, being in a coma, or suffering from a head injury. Mortgages, car payments, medical bills and other obligations still need to be addressed during these times. Moreover, an individual may need to make important decisions about public assistance like Medicare, Medicaid, or Veterans benefits. It is not always the case that a close relative can legally deal with these issues and most financial institutions will not even speak with a relative without a properly executed power of attorney. It can cost thousands of dollars in legal fees and waste tremendous amounts of time in the courts to be granted the authority that a power of attorney provides.

How to create a Durable Power of Attorney?

The process to create a DPOA is straightforward but should be done by an attorney in the state where the person resides. DPOAs are authorized by state statute and each state varies as to what is permissible to include in the document. States may also differ in how DPOAs are executed. Generally, the scope of an agent’s power is defined within the DPOA document itself. Powers cannot be assumed; they must be explicitly granted within the DPOA. Essentially, the person making the DPOA appoints an agent to act on their behalf for financial affairs. Typically, the agent is authorized to access the person’s accounts, pay bills, apply for benefits, or take any number of other actions, up to and including accessing online accounts, even social media. This access assumes the person has created and maintained a password vault of some form – that’s a topic for another day!

It is critically important that any DPOA be, well, durable. A durable power of attorney survives the person’s incapacity. There is usually language that must be included such as, “This power of attorney shall not be affected by subsequent disability or incapacity of the principal.” A regular power of attorney will not be effective when the person is incapacitated absent language in the document to the contrary.

When is it effective?

There are two basic options for when the document is effective. First, the document could be effective immediately upon signing, even though the client is still lucid and capable (which, of course, they must be to effectively execute the DPOA). People are often surprised by and uncomfortable with this option. The key to alleviating this concern is to only give this power to someone that is, without a doubt, trustworthy. Also, in most states, the named agent does not need to execute the document; indeed, the person is under no obligation to even inform the named agent that they have been designated as such. The document itself can be kept in safekeeping until it is needed.

The alternative to an immediately effective power of attorney is a springing power of attorney. A springing power is effective—springs to life, as it were—upon a future event identified in the document, such as the person’s incapacity. Under a traditional springing power, the agent has no authority to act unless and until the person becomes incapacitated. However, a springing power can be significantly more difficult for an agent to administer because financial institutions may demand a current medical report, signed by a doctor as evidence of incapacity before they allow the agent to act.

As with any appointment of an agent, there are potential pitfalls to consider in executing a DPOA. First and foremost, DPOAs provide broad authority that could be abused by the named agent. The potential for abuse grows with the scope of authority. Can the agent give a gift to themselves under the document? Can they change beneficiary designations on financial accounts?

With those caveats in mind, a DPOA should be developed with an attorney and included in most, if not all, estate plans to ensure that the agent can easily act if the person becomes incapacitated.  If you have questions, reach out to us for a consultation.

Have you Received an Eviction Notice? Here’s What To Do

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If you have received an eviction notice, do not panic. Notice evictions are just the first step a landlord must take in a tumultuous process that requires numerous steps. Thus, you don’t have to immediately move out, and in some cases, you may never have to move out. So, take a second to relax and review what our real estate attorneys say are the most important steps to take after receiving an eviction notice.

But before we dive into that, it may be helpful to understand what an eviction exactly is. An eviction is the process by which tenants are legally removed from the property they reside in. Evictions are court enforced and thus no eviction can ever take place without a court order telling you to do so. Evictions can occur for a number of reasons including but not limited to, not paying rent, causing damage to the property, having unauthorized guests or pets on the property, criminal activity, violence, and even too much noise. Occasionally, tenants are even evicted because they were unaware or failed to realize that their lease was up, and they have overstayed their welcome on the property.

Now that you are an eviction expert, follow these steps to best combat the eviction notice you just received:

Step #1: Learn and understand the reason you were served with the eviction notice.

This may seem as an obvious step, but it cannot be ignored. Reading eviction notices can be disheartening, however you must understand the reason you are receiving the notice. Perhaps, you can remedy the reason. If it is for not paying rent or causing damage to the apartment, the landlord may provide you with an option to avoid the eviction by paying your missed rent or fixing the damage to the property.

Step #2: Check your state and local laws.

Regardless of the eviction notice, you should ensure that the eviction notice is a proper legality under your state and local laws. While you certainly can peruse state laws in your areas on whether the eviction is proper, an attorney can be especially helpful for this step.

You should also check your state’s moratorium on evictions. For example, New York’s moratorium is scheduled to end January 15, 2022. For more information on moratoriums, check out this post recently crafted by JUSTLAW.

Step #3: Check your lease.

State and local laws aren’t the only bodies of law that control your apartment. Your lease does as well! Check it over and view whether the activity the eviction notice has accused you of is explicitly stated in the lease.

Step #4: Respond to the notice.

At this point, if you have exhausted steps 1 though 3, it’s time to engage with your landlord. Landlords are humans too and they may be empathetic to your situation.

Therefore, either write back to the landlord or schedule a face to face, or of course a video call, with your landlord to straighten out the situation. Offer your missed rent payments, tell them you’ll remove your pet, or ensure they know that the damage to the property will be fixed momentarily. But also do not be afraid to put your negotiation hat on. If you missed a few rent payments and the landlord asks for rent and interest, counter the landlord with just rent and not interest. Remember, there are always other places to live, so be a negotiator! 

If you need a real estate attorney to help you fight your eviction notice, look no further than Justlaw. Free consultations are available across all 50 states with an attorney right in your area who is highly qualified in evictions.

Prenuptial Agreements: What does State Law Allow

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Marriages, engagements, divorces and just about everything you can imagine that has to do with a family or a couple is governed by individual state laws. That is to say, family law is state law. However, while state law attempts to strive for fairness and equitable distribution, the law may not be the best for your situation. Prenuptial agreements allow for engaged couples to choose their own destiny.

Here are some common areas that are handled by state law and how a prenuptial agreement can avoid the state law from taking effect:

  1. Assets

When a couple divorces, much effort is spent dividing up the assets that both spouses accumulated during the marriage, otherwise known as marital property. States take two different approaches as to how marital property is divided up. One is referred to as a community property jurisdiction and the other is referred to as an equitable distribution jurisdiction.

Community property jurisdictions are only recognized in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Such states divide marital property evenly, using a 50/50 split. In the more common method of equitable distribution, judges divide up the property in an equitable or fair manner depending on the individual circumstances of the divorcing couple. Both methods allow for separate property, property that spouses owned before the marriage, to stay with that spouse, post-divorce.

In most cases if not all, divorced couples fight and fight over how their assets should be divided. Regardless, state law controls and it ultimately leaves either one of the divorcees or both divorcees upset. That is exactly why prenuptial agreements are so important for a couple looking to marry. By adding a provision in the pre nup detailing how your assets shall be divided post-divorce, the couple has planned ahead for the worst case scenarios. Don’t let a judge decide how your assets will be divided, do it yourself.

  1. Debts

State laws handle debt similarly to assets. Spousal debt is either separate property that has essentially began to accumulate before the marriage or marital debt that has begun to build during the marriage.

Prenuptial agreements can include a provision that divides debts based on your preferences. This is especially important if your fiancé has a significant amount of debt, and you want to ensure you will not be responsible for some or any of it, post-divorce.

  1. Spousal support

It is very common for a married couple to include one spouse who works and another who stays home full time to care for their children. In many instances, when a couple of similar circumstances divorces, the stay-at-home spouse is entitled to spousal support from the working spouse. Factors that a judge will use to determine the amount of spousal support regularly include the stay-at-home spouse’s earning capacity at the time of the divorce, the length of the marriage, and the state’s divorce laws. Judges usually have the final say as to how spousal support is conducted, and their decisions may be to your dismay.

Once again, following the same theme as above, a prenuptial agreement can avoid a judge’s arbitrary decision on the award of spousal support. A pre nup can limit spousal support, post-divorce, based on your wishes.

If you read this and want absolutely nothing to do with state family law, click here and we can find an experienced lawyer to join you for a quick consultation and pre nup for a limited time offer of $569. Take advantage quick before this offer ends!

PRENUPTIAL AGREEMENTDownload FREE e-Book HERE!

WHAT TO EXPECT NOW THAT CDC EVICTION MORATORIUM HAS ENDED?

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                                                ABOUT THE AUTHORS

                  Alex Safarian CDC EVICTION MORATORIUM

Alex Safarian is an attorney who litigates a wide range of claims, including Personal Injury, Unlawful Detainer, Fair Housing, Discrimination, Wrongful and Retaliatory Eviction, and Breach of Lease, and is well respected by defense attorneys, judges, and insurance companies in Los Angeles and neighboring counties for his integrity and compassionate representation of his clients.
Safarian is a member of Los Angeles Bar Association, Armenian Bar Association and the Consumer Attorneys Association of Los Angeles and keeps close relationships with other Attorneys in his field.

                Ryan G. BlockCDC EVICTION MORATORIUM

Ryan Block is a seasoned trial attorney who has represented thousands of clients as the lead trial attorney and has appeared in front of over 50 judges in the Los Angeles County and surrounding areas.
Mr. Block’s reputation has allowed him to have tremendous success early in his career as the founding partner at Block LLP.  Mr. Block ensures his firm has excellence in service and consistency of results for each of his clients. After earning a bachelor’s degree from the University of California, Los Angeles, Ryan earned his law degree from Southwestern Law School. Ryan began his legal career with the office of Dennis P. Block and associates, working on real estate litigation.

Click here to get to know him more

                              Learn more about BLOCK LLP

This Article has 3 parts. Stay Tuned for the continuation..

WHAT WAS THE CDC EVICTION MORATORIUM?

On September 4, 2020, the Centers for Disease Control and Prevention issued the “Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID–19”. This Order would be more colloquially described as the “CDC’s Eviction Moratorium.” This Moratorium was passed in an effort to address concerns that the economic effects of the pandemic on renters would lead to a glut of evictions and, by proxy, increased spread of COVID-19 among the newly unhoused. Specifically, the Moratorium’s statement of intent was:

“This Order shall be interpreted and implemented in a manner as to achieve the following objectives:

  • Mitigating the spread of COVID-19 within congregate or shared living settings, or through unsheltered homelessness;
  • Mitigating the further spread of COVID-19 from one U.S. State or U.S. territory into any other U.S. State or U.S. territory; 
  • And supporting response efforts to COVID-19 at the Federal, State, local, territorial, and tribal levels”

In support of this ideal, the CDC Moratorium was designed broadly. Functionally, if any rent-paying tenant, in any state, signed a declaration stating that they were suffering from COVID-19-related financial distress, and provided a copy to their landlord, then they could not be physically evicted until the expiration of the Moratorium, for non-payment of rent related reasons. On paper, the Moratorium threatened potential criminal penalties for any landlord who violated this order.

In practice, the Moratorium did not prevent any Landlord from filing an unlawful detainer action against their tenant. Presenting the declaration to a Court, in effect, stopped the clock until the order expired. However, there cannot be any doubt that the Moratorium was broad in scope. Provided the requisite declaration has been signed, any tenant, of any type, would be covered.

It was an order unconcerned with individual considerations. It was, as designed, an attempt to provide all tenants a back door when facing imminent eviction. While other statewide,

county, and city eviction moratoria provided similar protections to tenants in their relevant communities, the CDC Moratorium’s protections covered all tenants in all 50 states.

 

WHY DID IT END?

As originally designed, the order was to expire on December 31, 2020. The idea was that the Moratorium was a temporary stop-gap to help with the fears of the wildfire spread of COVID-19 during the winter of 2020 due to the imminent risks posed by evicting people.

When the spread of COVID-19 did not show signs of improvement by late December 2020, Congress extended the Moratorium for one month.  After this, Congress did not provide for any other extensions of the Moratorium. 

However, where Congress was silent, the CDC stepped in. Each time a new deadline approached, the CDC would extend the order unilaterally. 

Predictably, this did not go unnoticed by Landlords and their associated groups. Many challenges were brought against the CDC’s Eviction Moratorium in the Courts.

Eventually, one of these challenges wound its way to the Supreme Court in Alabama Association of Realtors, et al. V. Department of Health and Human Services, et al., 2021 WL 1946376 (May 14, 2021)

ROUND ONE: ALABAMA ASSOCIATION OF REALTORS, ET AL. V. DEPARTMENT OF HEALTH AND HUMAN SERVICES, ET AL., 


As summarized by the Supreme Court, Alabama Ass’n of Realtors v. Dep’t of Health & Human Servs. arose when,

“Realtor associations and rental property managers in Alabama and Georgia sued to enjoin the CDC’s moratorium. The U. S. District Court for the District of Columbia granted the plaintiffs motion for summary judgment, holding that the CDC lacked statutory authority to impose the moratorium.”

While a significant number of courts throughout the nation had previously found that the CDC overstepped its bounds with the Eviction Moratorium, the District Court’s order went further. The Court summarized its ruling as follows, 

 

“the question for the Court is a narrow one: Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium?  It does not.  Because the plain language of the Public Health Service Act, 42 U.S.C. § 264(a), unambiguously forecloses the nationwide eviction moratorium, the Court must set aside the CDC Order, consistent with the Administrative Procedure Act, see 5 U.S.C. § 706(2)(C), and D.C. Circuit precedent, see National Mining Ass’n, 145 F.3d at 1409.” 

 

Through this order, the District Court nullified the CDC’s Eviction Moratorium at a nationwide level.  Unsurprisingly, the above ruling was appealed, and the Court stayed its order pending the appeal of the Dept. of Health and Human Servs. When the D.C. Circuit Court did not vacate the stay, the dispute was brought before the Supreme Court.

On June 29, 2021, the Supreme Court denied the application to vacate the stay imposed on the District Court’s order on a 5-4 vote, with Justice Kavanaugh casting the deciding vote.

However, Justice Kavanaugh’s concurrence to the order explained that he was only siding with the majority on this because the CDC’s moratorium was set to end on July 31, 2021 and that a few weeks would “allow for additional and more orderly distribution of the congressionally appropriated rental assistance funds.” On the merits, he stated “I agree with the District Court and the applicants that the Centers for Disease Control and Prevention exceeded its existing statutory authority by issuing a nationwide eviction moratorium,” and that in his view, clear and specific congressional authorization would be necessary for any further extensions of the Moratorium.

This concurrence was meant as a signal to the other two branches of government. For the executive, it was a clear warning that if the CDC again unilaterally extended the Eviction Moratorium, the Court would strike it down. For the Legislature, it was a statement that only Congress could extend or continue this nationwide eviction moratorium.

However, Congress failed to pass any laws or orders that would extend the CDC’s Eviction Moratorium or impose a new national Eviction Moratorium. As such, the Order lapsed on July 31, 2021. 

In the absence of any action by the Legislature, the CDC, with full warning of the potential consequences, reinstated the Eviction Moratorium extending its protections until October 3, 2021. 

In response, the Plaintiffs in Alabama Association of Realtors, et al. filed an emergency application with the District Court to vacate the stay currently in place. 

Within the space of a few weeks, Plaintiff’s application of was again in front of the Supreme Court. 

Up next:

ALABAMA ASSOCIATION OF REALTORS, ET AL. V. DEPARTMENT OF HEALTH AND HUMAN SERVICES, ET AL., ROUND TWO

EXECUTIVE AND LEGISLATIVE BRANCH NONRESPONSE TO RULING