How does a marital property agreement work?
In Wisconsin, a marital property agreement is a predetermined arrangement for how a couple has decided to divide assets in the event of a divorce or upon death. A marital property agreement, also known as a prenuptial or post-nuptial agreement, is a flexible document between spouses that sets out each spouse’s rights and obligations with respect to all of their assets.
A marital property agreement allows a couple to classify assets as individual property and/or marital property. This allows you to maintain control over certain assets and ensure your spouse receives only the portion of your estate that you intend. Without a marital property agreement, the distribution of marital assets will generally go to the surviving spouse unless you have children from a previous relationship.
What is marital property in Wisconsin?
If you’re living in Wisconsin, you might wonder what constitutes marital assets under state law. Wisconsin is a community property state which means that all money earned by either spouse during a marriage, and property bought with those earnings, is considered marital property. Generally, marital property includes all income, property, debts, and possessions that a couple acquires after they are married.
In a divorce or legal separation proceeding, the Court will start with a presumption that all property is shared between the spouses and is subject to equal division as a marital asset. Some assets can be re-classified as non-marital assets in the divorce. For example, property owned or received before marriage may be considered the individual property of the spouse who acquired it. However, for property to be considered non-marital, you usually need records or evidence to prove that the property was acquired prior to the date of the marriage. Other examples of non-marital property include gifts or inheritances. During your marriage, non-marital property can unintentionally become a marital asset. For example, if you use a bank account from before your marriage to pay family bills or deposit your income, that bank account can be considered a marital asset.
Marital assets remain shared property until the death of a spouse, dissolution of the marriage (i.e. divorce), or the property is reclassified. Property may be reclassified by interspousal gift, marital property agreement or court action. A marital property agreement can be especially important when dealing with estate planning. Having a predetermined plan for the division of assets can alleviate the stress of making important decisions in a time of heightened emotion or grief.
What to do if you do not have a marital agreement in place?
If you do not have a marital agreement in place, you can still create one, even if you are married. In fact, most couples find that drafting an agreement allows them to be open and honest about their finances and assets with one another. Remember, creating one doesn’t mean you are headed toward a divorce; it provides you both (as well as your children) protection for the future and allows your relationship to remain transparent.
Marital property agreements are flexible but also have certain legal requirements. An attorney’s assistance will help create an agreement that works best for you, your goals, and your interests.
Find an Estate Planning Attorney Near You
The time to start protecting your interests is now. Our family law and estate planning attorneys have been finding solutions that are right for each client since 1883. For a consultation with a highly skilled marital property agreement attorney at Doar, Drill & Skow, call 877-362-7529 toll-free or contact us online. Located in New Richmond, we serve clients throughout western Wisconsin, southeastern Minnesota, and the Twin Cities.