Q: Is a nuptial agreement worth the effort or will it just cause problems?
A: With so many Seniors remarrying, an antenuptial agreement (before marriage) or a post nuptial agreement (after marriage) is essential to protect children and other beneficiaries of each spouse.
A few years ago there was a stigma about discussing and acting on a nuptial agreement. Lately I notice it is one of the foundations in building a solid and meaningful second relationship. The arrangement will stand up if done properly under Colorado law.
Without an agreement, any property brought into the new marriage that becomes tainted (such as putting the other's name on the property or by the new spouse making some or all of the payments) can be drawn into a subsequent divorce. Also despite the deceased's Will and most Trust arrangements, during each year of marriage a new spouse gains a 1/5 right to 1/2 of the other's property until the full 1/2 right is vested at the end of five years.
Q: Is there a current estate problem that concerns you?
A: Individuals who had no tax exposure just a year or so ago have recently died and left estates that have doubled or tripled in value. Now a significant portion of that increase will be lost to estate taxes. Each family indicates that the deceased was meaning to set up a meeting with the deceased's attorney to review matters but never followed through until it was too late.