When it comes to property ownership, married couples have the option to either keep their assets separate or combine them. For those who choose to combine assets, a property agreement is necessary to ensure that both parties are protected in the event of divorce or death.
Here`s a sample property agreement for married couples to help get you started:
1. Purpose of Agreement
This agreement outlines how property, owned or acquired during the course of the marriage, will be divided in the event of a divorce or death of either party.
2. Definition of Property
“Property” includes all real property, personal property, and any other assets owned by either party before the marriage or acquired during the course of the marriage, regardless of how it is titled.
3. Separate Property
Each party will maintain their separate property, which includes any property owned before the marriage, property received by gift or inheritance, or any property specifically designated as separate property in writing.
4. Jointly Owned Property
Property owned jointly by the parties will be divided in the event of divorce or death according to the following guidelines:
a. Real property will be divided equally between both parties.
b. Personal property will be divided by mutual agreement or, if agreement cannot be reached, sold and the proceeds divided equally.
c. Any jointly owned accounts or investments will be divided equally.
Any debts incurred by either party before or during the marriage will be the responsibility of the party who incurred them.
This agreement may be modified at any time by written agreement signed by both parties.
As with any legal documents, it is important to consult with a lawyer before creating a property agreement to ensure that it is in compliance with state laws and meets your specific needs. Having a property agreement in place can provide peace of mind, protect your assets, and make the divorce process smoother in the event that it becomes necessary.