Marriage, Real Estate, Money II

By
Services for Real Estate Pros with The Real Estate Investment Institute 1retiredsage

My last post was about divorce, real estate and money today we’re talking about marriage real estate and money.

This is not about kids getting married or having kids. This is not about those just getting started in life, with out established credit, or major assets.

This is not about those who are not emancipated or over 18.

This is about those considering marriage, if indeed marriage is considered. I know in my case from the day I met Brenda, I didn’t so much consider marriage, I just couldn’t consider life without her.

This is about those with a credit history.

This is about those with monetary assets and liabilities! Those with money. Those with debts.

1. Credit! In community property states and some dower states, has your new spouse regardless of gender bringing their credit with them. Bad or excessive credit should not come as a surprise! Every thing done after the wedding will involve both of you, with you being jointly and severally libel for your spouses debts! Depending on the state you take up residence in you may be liable for debts accrued by your new spouse before marriage. You may even find yourself directly or indirectly libel for debits incurred by your new spouse’s ex-spouse, before their divorce!

Read yesterday’s post, divorce decrees may say the Ex is responsible for selected debts, but it’s not relevant or binding to your creditors, you still owe the money and it could be collected from your newly aquired communty assets, depending on your state. It will show on your credit report!

 

2. You may be aware

that mortgage lenders often split a spouse with credit or income problems out of the transaction. Are you aware that some/many loan programs don’t allow this?

Are you aware that in many states judgements even those of your spouse/ex-spouce attach to newly aquired property before that spouse can waive their rights to the property. This means even though they're not goinn tobe on the loan or title their credit can stop your loan!

But, they don't have any judgements, what about tax liens? Judgements and liens may be in other names, a woman has choices about her name when she gets married? You'll need to check any and all names your new spouse has ever been known by, and any and all names of every ex-spouse!

Something new to consider: the shame of our socialist mistakes, Student Loans. Many a graduated finishes school in more debt than their parents had in a life time! For many student loans constitute more than their parents made in a life time, a doctorate can exceed their parents and grandparents accumulated life time earnings. Don’t forget those credit cards you both got in the mail as freshmen!

3. Pre-nup's

I don't personally believe in them, but older couples and second marriages with children or major assets should have them. Don’t forget a will, and/or a trust before the wedding!

4. Vesting.

Most married couples take title to property as "Joint Tenants" or "Tenants by Entireties, (Joint Tenancy by a married couple,) but older couples and couples with prior children should consider other options, normally "Tenants in Common"! Tenantry is a separate subject and should be discussed with an estate planner, preferably an attorney!

I've never advocated holding investment property in the same manor as your home. I believe most investments should be held by an "LLC" which is owned by a well planed "Living Trust." Again the more you have to protect, the more you need good advice and a plan.

Just getting married doesn't necessary change your insurance, call your agent! Your new spouse may not be covered! Hazard insurance may not cover your as yet unnamed new spouse's newly acquired interest in your real estate. Your car insurance should be checked, your spouse is probably covered when driving your car, but if named they would be coved in any car they drive. Check with your agent. 5. Those with assets considering marriage need to do some financial planning first!

 

6. Life insurance!

Most of our older widowers and divorcees never considered it either. Remember the kids! Remind older lovebirds to plan their finances, first. This is a very good time to reconsider your needs, check with your agent.

7. Social Security and Pensions. Social Insecurity would be a better term, and many private annuities stop benefits your late spouse paid for when you remarry! Check!

8. There is always more than one way! I’m an advocate of traditional marriage, but I’m also pragmatic! All the legal benefits that accrue with marriage can be had al-a-cart! All the legal benefits can be had by any couple or even group!

Marriage is mankind’s greatest and oldest statement of love, but established at a time when you married in you teens and died in your thirties. Established before consumer debt and social meddling!

Love remains a blessing not business decision!

Marriage has morphed into a business for those with financial baggage. Hopefully you’ve talked about love, you’ve talked about sex, you’ve talked about the byproducts! Hopefully you’ll talk about finances! Hopefully before the pending wedding is announced!

 

 

 

Posted by

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org      Cell 832-259-7078,      Houston 832-582-8415,       Las vegas 702-516-1569

     http://www.reii.org  Back Cover One House At A Time http:www//reii.orghttp://www.flippingforfunandprofit.info/ http://www.billarchambault.com   

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

http://www.reii.org

©William J Archambault Jr   ©The Real Estate Investment Institute   ©REII

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Show All Comments
Rainer
277,179
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA
- Pierce, King, Kitsap, Thurston, Mason Counties

Bill -- excellent advice!    Thanks for pointing out how the world has changed, and that the way we look at marriage and all of the financial connections should also be updated appropriately.

Have a great week!

May 07, 2012 12:43 PM #1
Rainmaker
591,126
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Thanks Steven!

Truth is I believe some things should be beyond review!

I still believe in marriage like my Great Grandparents did. The Constitution the way it was written! My ideal car is the '66 Dodge Charger I drove to collage.

 

But, I'm pragmatic!

I preach old world values in an up to date manor and drive an SUV.

Bill

May 07, 2012 12:58 PM #2
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Bill I look at credit report with huge amounts of student loans on them almost everyday.  Looked at one the other day that the person had over $800 per month of student loans.  What a way to start off your life.

May 07, 2012 05:00 PM #3
Rainmaker
591,126
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

George,

I had to pay out of my pocket before each semester, because they said my parents made to much.

A year latter Jack got a full ride, because his parents already had me in school!

All things considered we got allot more for much less that anyone offers today!

Bill

May 07, 2012 05:50 PM #4
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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

There is certainly a lot to consider with respect to marriage and real estate. I'm sure that I considered none of it when I got married.

May 07, 2012 08:09 PM #5
Rainmaker
591,126
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Melissa,

Nether did Brenda or I in 1971.

I could have taught this class back then, but it never would have occurred to me.

Kids shouldn't have to, but student loans and credit cards interfere.

I guess twenty years of lending in Las Vegas jaded me. Sop many of my clients were on their second, third or even tenth marriage. One I remember well was married 10 times, five to the same man.

Bill

May 07, 2012 08:25 PM #6
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Rainmaker
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William J. Archambault, Jr.

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