Georgia, Alabama and Kentucky are the states with the highest for divorce rates, according to U.S News. Many adults over the age of 55 who are divorced consider remarrying. According to dating site Bumble, 57% of Baby Boomers are looking for a relationship compared to 40% of millennials. Few people who go through the process of legalizing their romantic relationships do so with a break-up or divorce as the end goal. While it’s not the most palatable consideration, the reality is that in the United States, roughly 50% of married couples divorce. Baby Boomers have very different needs than millennials who are marrying. High net worth older adults often have children, retirement savings, property, a business and other assets to protect themself today and provide for their families in the future. A prenuptial agreement can help older couples have a clear understanding of their financial expectations and avoid potential problems in the future.
Without adequately protecting your assets from a relationship breakdown, getting a divorce or terminating a relationship can cause unintended adverse economic effects for both spouses, particularly high net worth individuals. The rise of blended families and de facto relationships in later life raise particular legalities when it comes to asset protection.
Here are some common questions related to legal relationship agreements for Baby Boomers and prenups, and tips on how best to protect your assets from a relationship breakdown in the future.
If you are getting married and want to protect your assets during a relationship breakdown, you should have a prenuptial agreement. Also called a premarital agreement, a prenup is a legal contract that is entered into by two individuals who plan to get married. They are typically executed by those who have accumulated assets prior to marriage and stipulate what happens to each spouse’s assets and income in the unfortunate event of divorce, separation or death.
In Georgia, any asset acquired before marriage is considered separate property. However, all property acquired during the marriage is considered marital property and subject to equal division. This includes the marital home, care, gifts made by one spouse to another, retirement portions accrued during the marriage and other debts and assets.
A premarital agreement can designate property, even if accrued during a marriage, as separate. However, this has to be stipulated and agreed upon by both spouses in their prenup contract.
In Georgia, cohabitation is defined as, “dwelling together continuously and openly in a meretricious relationship with another person, regardless of the sex of the other person.” Practically, it may seem like marriage, however, cohabiting couples do not enjoy the same rights and legal protections as married individuals. And, terminating a co-habitation does not require the same process as divorce in Georgia.
The most significant difference between Cohabitation and Prenuptial Agreements is they do not entitle either party to equitable property division once the relationship is terminated. In addition, Georgia family courts do not get involved in resolving property division and other aspects of cohabitation. Terminating cohabitation is usually mediated by a family law attorney.
Essentially, this means that Georgia family courts do not legally recognize cohabitation agreements and will refuse to hear cohabitation disputes. Ending cohabitation can lead to disputes over personal assets and property.
Cohabitation Agreements between two people who want to live together but not be legally married can cover property, possessions, debts, and even support and custody issues, but these particulars have to be stipulated in the agreement. Establishing power of attorney and using other estate planning tools can also help protect assets from a relationship breakdown.
A separation agreement is used by two people who want to get out of their marriage without fully abandoning all of its legal advantages. Both people in the marriage can use separation agreements to formally divide their assets, debts and other marital responsibilities so that each party experiences a fair separation from the other. While some states, like California, recognize legal separation, Georgia does not.
In Georgia, some couples opt for a separate maintenance agreement that achieves many of the same things divorce does. However, even though the two spouses may live apart, they still remain legally married. It essentially acts as a Legal Separation but is not referred to as such.
A maintenance agreement does not necessarily protect assets from a relationship breakdown as marital property still belongs to both spouses, and will have to be divided fairly if divorce occurs later on. Some couples may opt for a maintenance agreement for the following reasons:
It’s imperative to note that in legal separation cases in Georgia, it is possible that the judge will interpret the law to mean they cannot order any division of marital property, even if you and your spouse agree on how to divide everything. The judge may decide how to award child support, custody, and alimony, but decline to issue an order declaring which assets and debt belong to which party. Therefore, maintenance agreements may not be an effective tool to protect assets from potential relationship breakdowns.
Protecting assets from relationships breakdowns is a complicated process that demands radical transparency between couples who want to legalize their domestic relationships. The best way to protect assets from relationship breakdowns in Georgia is to hire an experienced Georgia family law attorney who can advise you on your options, and draw up the type of contract that can best safeguard your future needs.
If you’re considering remarriage or cohabitation and want to protect your assets and your family, you should contact a family law attorney as soon as possible to protect your future. They’ll help you understand your options and make sure that your goals and interests are protected throughout the proceedings.
Our team at Attorney Sharon Jackson has extensive experience in prenuptial agreements. We’re here to help. Contact us today at (678) 436-3636 to schedule a consultation.
Attorney Sharon Jackson LLC
175 Langley Drive, Suite A1
Lawrenceville, GA 30046
Phone: (678) 909-4100
