THE IMPLICATIONS OF PRE-WEDDING DECISIONS UPON DIVORCE
Getting engaged and planning a wedding is one of the most exciting times in a person’s life. But, as with most important milestones, it comes with some anxiety thinking of issues that you may not have had to consider with your significant other before now. Recently, I published a blog post on whether entering into a prenuptial agreement might be appropriate in your situation. You may have decided that this agreement is not necessary. However, that does not mean that you don’t have to be mindful of how certain financial decisions that you and your fiancée make during the wedding planning process can impact your future. As we all recognize, weddings are sometimes not just about the couple, but also about both families, and they can be expensive!
The engagement ring is one of the most meaningful sentiments at the start of your upcoming nuptials. What if the engagement ring is a family heirloom that you are about to give to your partner when popping the question? In New York, if you pop the question, your partner says yes, but then the wedding falls through, then you get the ring back. However, if that commitment is made and you become married, that ring becomes the separate property of the recipient partner, meaning you may not be entitled to get it back upon divorce.
As you plan your wedding, the expenses of pre-marital celebrations, the wedding itself, and the honeymoon can quickly surmount. This, all together with contemplating the expense of purchasing your first home together, can be overwhelming. Sometimes, the families offer to help defray these costs. One side might offer to contribute to the wedding while the other side may offer to contribute to the purchase of the home. It is important to understand that, under New York law, upon divorce the spouse whose family gave them funds to purchase the home might be entitled to a credit back upon divorce. This is not the same for the spouse whose family contributed to the wedding. To illustrate, Joe’s family writes a check to Joe for $50,000 to put as a down payment on a home that is going to be purchased by Joe and Alex after marriage. Alex’s parents agree to contribute $50,000 towards the wedding expenses. Both happened, and now, unfortunately, Joe and Alex decide to get divorced. In this situation, Joe can make a claim for the return of the $50,000 received off-the-top of the sales proceeds on the house before the couple splits the remaining funds. Alex may not have a similar claim to receive the money contributed towards the wedding returned.
Getting married is a blissful time in one’s life. However, it is important not to shy away from the fact that there is a significant level of financial entanglement that occurs along with the responsibility of knowing the impact decisions made during the process may have upon divorce. Even if you do not believe a prenuptial agreement is an idea you need to consider, that does not mean that you should not seek the advice of an attorney when making financial decisions during the wedding process to have a general understanding of the financial implications in the unlikely event of a divorce.
If you believe a consultation in anticipation of marriage may be appropriate in your situation, contact a member of Geffner Kersch for a consultation.
