From: Michael G
Hi Peoples,
Thought I'd post this because, well its something I think should always be considered.
I mean we're spending $$$ in the 1000s in learing and acquiring assets and to me asset protection is simply a form of insurance. We insure our cars, personal effects, home and income, why not have the same level of protection for our livelyhood, ie the cashflow and capital that our assets create?
I also thought this would be a good newbie post. I know there are now many younger investors out there with thoughts of marriage far off (if at all), but what happens when the girlfriend want's to move in?, when do things become defacto in the eye's of the law?, how safe are your IPs if it doesn't work out?
Reading an interesting book at the moment "The Complete Guide: How to LEGALLY PROTECT Your Assets, A Stateside and Offshore Planning Guide to Wealth Preservation Techniques" by David A. Tanzer. (American law, but concepts very applicable).
Nice easy read, but I just had to quote some sections on relationships....
Cohabitation Agreements:
A simple document that each and every non-married couple should have before they first place their heads on the pillow in the new bed, is called a Cohabitation Agreement. You should spell out how much each contributes financially, and what it is to be used for.
Importantly, you should spell out very clearly that in fact the money paid to live in the same home is "rent" and not a contribution towards the mortgage of the other. And improvements and decorating, even if the home increases in value, does not give rise to claim in the home or property of the other.
Indemnification against the other against any household credit accounts, or common charge accounts, is essential. That way you can proceed in court against your ex for their share of unpaid amounts due and owing, assuming that you can locate and extract money from the deadbeat.
Better yet, avoid joint credit accounts altogether and reflect any inequities in the amount of the "rent" payment. That way you can make certain that you pay what is in your name and not worry about your lover's failure to meet their obligation.
The Cohabitation Agreement should spell out each and every financial obligation that arises between the two of you. And significantly, it should set forth what happens on the financial side of the relationship in the event it fails, however unlikely you believe this to be.
One of the great benefits of thinking through how to unwind a relationship from the start, is that both parties will know exactly where they stand from the beginning if it becomes unglued. When love is in the air, what better time to sit down and communicate and openly talk about these things. If you can not do it then, when else?
Do you think that when the bitterness and spite set in at the time of a break up, you can really deal with these important matter? Don't worry, you will still have other things to argue about, but at least your finances are in order!
(I like this guy's words about pre-nups)
The union of a couple in ceremonial matrimony brings with it significant financial responsibilities. This is particular true where there are unequal assets brought into the picture or children from an earlier relationship. Is this new, legally binding relationship a gold mining function for one of the partners? Or is it really true love? If it is true love, then let's put the cards on the table.
What was the attraction in the marriage in the first place? If not money, then let's make that clear on written document. If the other party truly does not want your assets, then get their signature on the Prenuptial Agreement already. Let's keep things honest from the get-go.
(just one more word on the subject)
Formalise Personal Relationships:
Moreover, there are two opposite and extreme sides, both irrational, to love and breaking up. If not you, I am certain that you have witnessed friends of yours, men and women, that conduct their personal affairs in an unquantifiable and unpredictable manner when in love or upon a falling out of love. Their actions might be characterised as simple stupid. Entering into a written agreement when cohabiting with another, when sharing a common law marriage, or prenuptial agreements before entering into marriage, at a time when common sense prevails, is the best protection to preserving your assets. Do not worry, you will still have things to argue about anyway.
(I think he put's it nicely).
Regards
Michael Gruber
Hi Peoples,
Thought I'd post this because, well its something I think should always be considered.
I mean we're spending $$$ in the 1000s in learing and acquiring assets and to me asset protection is simply a form of insurance. We insure our cars, personal effects, home and income, why not have the same level of protection for our livelyhood, ie the cashflow and capital that our assets create?
I also thought this would be a good newbie post. I know there are now many younger investors out there with thoughts of marriage far off (if at all), but what happens when the girlfriend want's to move in?, when do things become defacto in the eye's of the law?, how safe are your IPs if it doesn't work out?
Reading an interesting book at the moment "The Complete Guide: How to LEGALLY PROTECT Your Assets, A Stateside and Offshore Planning Guide to Wealth Preservation Techniques" by David A. Tanzer. (American law, but concepts very applicable).
Nice easy read, but I just had to quote some sections on relationships....
Cohabitation Agreements:
A simple document that each and every non-married couple should have before they first place their heads on the pillow in the new bed, is called a Cohabitation Agreement. You should spell out how much each contributes financially, and what it is to be used for.
Importantly, you should spell out very clearly that in fact the money paid to live in the same home is "rent" and not a contribution towards the mortgage of the other. And improvements and decorating, even if the home increases in value, does not give rise to claim in the home or property of the other.
Indemnification against the other against any household credit accounts, or common charge accounts, is essential. That way you can proceed in court against your ex for their share of unpaid amounts due and owing, assuming that you can locate and extract money from the deadbeat.
Better yet, avoid joint credit accounts altogether and reflect any inequities in the amount of the "rent" payment. That way you can make certain that you pay what is in your name and not worry about your lover's failure to meet their obligation.
The Cohabitation Agreement should spell out each and every financial obligation that arises between the two of you. And significantly, it should set forth what happens on the financial side of the relationship in the event it fails, however unlikely you believe this to be.
One of the great benefits of thinking through how to unwind a relationship from the start, is that both parties will know exactly where they stand from the beginning if it becomes unglued. When love is in the air, what better time to sit down and communicate and openly talk about these things. If you can not do it then, when else?
Do you think that when the bitterness and spite set in at the time of a break up, you can really deal with these important matter? Don't worry, you will still have other things to argue about, but at least your finances are in order!
(I like this guy's words about pre-nups)
The union of a couple in ceremonial matrimony brings with it significant financial responsibilities. This is particular true where there are unequal assets brought into the picture or children from an earlier relationship. Is this new, legally binding relationship a gold mining function for one of the partners? Or is it really true love? If it is true love, then let's put the cards on the table.
What was the attraction in the marriage in the first place? If not money, then let's make that clear on written document. If the other party truly does not want your assets, then get their signature on the Prenuptial Agreement already. Let's keep things honest from the get-go.
(just one more word on the subject)
Formalise Personal Relationships:
Moreover, there are two opposite and extreme sides, both irrational, to love and breaking up. If not you, I am certain that you have witnessed friends of yours, men and women, that conduct their personal affairs in an unquantifiable and unpredictable manner when in love or upon a falling out of love. Their actions might be characterised as simple stupid. Entering into a written agreement when cohabiting with another, when sharing a common law marriage, or prenuptial agreements before entering into marriage, at a time when common sense prevails, is the best protection to preserving your assets. Do not worry, you will still have things to argue about anyway.
(I think he put's it nicely).
Regards
Michael Gruber
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