Marital property agreements, also known as prenuptial or post-nuptial agreements, effectively define how property should be distributed in a divorce. They are also an effective estate planning tool. A marital property agreement is a flexible written document between spouses, setting out each spouse’s rights and obligations concerning both spouses’ property regardless of when it was acquired or located. Typically, Wisconsin law treats all income and possessions a couple acquires after their marriage as “marital property.” Marital property agreements allow spouses to structure and change how all or a part of their property is classified under the law.
Property agreements can also function as a tool to evade probate. The Wisconsin Marital Property Act allows married individuals to mutually agree that, upon the death of either spouse, they may transfer their property, including any after-acquired property, to a specified person, trust, or entity without going through probate. Consequently, these agreements can safeguard a married person’s assets from probate if the asset is situated in Wisconsin. Creating a living trust represents one of the most effective methods for asset protection after death. Notably, Wisconsin is the sole state in the nation that permits funding a living trust after the Grantor’s death while still avoiding probate.
Marital property agreements can also protect one spouse from the other spouse’s creditors. Once you are married, any debts or liabilities brought into the marriage or incurred during the marriage by your spouse are considered yours. A prenuptial or post-nuptial agreement can protect your separate assets and income from creditor claims against your spouse, provided the creditor has notice of the agreement.
In estate planning, prenuptial agreements can also be important, especially if you have children from a prior marriage or relationship. Without proper documentation, your children will be entitled to half of your estate, while your spouse will be entitled to the other half. Even if you designate unequal distributions in your will, your spouse can still assert their right to the spousal inheritance share (50 percent of the estate). A marital agreement enables you to make unequal distributions to protect the interests of your children.
The time to start protecting your interests is now. Our estate planning attorneys have been finding solutions for each client since 1883. For a consultation with a highly skilled marital property agreement attorney at Doar, Drill & Skow, call 877-362-7529 toll-free or contact us online. Located in New Richmond, we serve clients throughout western Wisconsin.