The Implications of Family Law on Shared Accounts and Assets

Married couples can enjoy many rights and benefits from their union. Among them is the ability to combine their financial capacity and acquire assets. But it is also for that reason that it is not unusual for lawyers to get cases of couples fighting over jointly owned property and finances.

Divorce can be an emotional experience. It could complicate the process of settling debts and managing assets, especially for entrepreneurs. In this article, we’ll look at some of the common issues couples who own property together should consider even as they seek divorce lawyer services.

Joint Loans and Mortgages

When it comes to joint loans and mortgages, the principle remains the same whether you are cohabiting, or are legally married. The situation is complicated by the fact that co-signatories do not have the option of canceling the contract. The lender will expect the couple to organize their repayments.

You are both liable in case of a default in your mortgage repayments. It does not matter if one party has been repaying most of the debt. The lender can pursue either party to ensure the loan is fully settled.

To make matters worse, your credit score will effectively be interlinked with that of your spouse. In case of a default, it could affect your ability to get financing in the future. For this reason, you should try to keep channels of communication open with your partner.

You can use divorce lawyer services as a go-between if you are no longer in talking terms with your spouse. By having some lines of communication open, you will have the chance to exploit other options, such as selling the house. Your family law attorney can guide you on how to draft contracts for refinancing the property, or how to share equity or liability.

Property Rights and Responsibilities

The law also has provisions for the rights of married couples throughout their union. These laws also vary from one jurisdiction to the next. But generally, each partner can access the joint property, bank accounts, and can inherit the spouse’s assets upon death.

Married couples can also receive their partner’s social security, pension, and disability settlements. One other perk of being legally married is it affords the couple family rate benefits when applying for health or auto insurance policy.

However, to access these rights, it is expected that both parties will commit to their responsibilities. Married partners should keep in mind that failing to observe some of their marital duties could affect the court’s ruling on assets and alimony.

Both parties have the responsibility to show their partner decency and respect. Not only is abuse a serious violation of family law but so is negligence and infidelity. It often impacts the decision on joint assets in fault-based divorce jurisdictions.

Fiduciary Duty

As is it with business partners, couples have a responsibility to disclose their financial dealings and properties in their name. You are also expected to disclose if you’d have had a criminal history and current or previous marital commitments.

Failing to disclose your finances or properties, could lead to loss of your assets. For example, you could lose property under your name, if you had taken marital income to complete your payments for it.

Married partners may also, through divorce lawyer services, arrange for a prenuptial before marriage. The parties pre-negotiate how assets will be split, alimony, who will be responsible for debts, among other issues.

However, the exception is that the couple cannot predetermine, through a child custody lawyer, how they will share responsibilities for their children. Child support is also not covered in prenuptial agreements. Couples ought to remember that prenuptial contracts are valid when there is full disclosure and where they have upheld responsibilities.

Bottom-Line

It can be painful to lose property that you had expected will remain under your possession. It can have a significant impact on business and overall well being. It is, therefore, vital that you understand the implications of family law in your jurisdiction before you make significant decisions on assets and finances. You can visit our website for more information on divorce lawyer services in Houston, TX.