Is Missouri an Equitable Distribution State?
Knowing whether your state is a community property or an equitable distribution state is important in family law cases such as divorce proceedings.
Community property is a legal system that defines marital assets as belonging to married spouses equally. Regardless of who earned every dollar, who saved what, and who spent what, all money earned during the marriage, with very few notable exceptions, will belong equally to both spouses. Most debts acquired during the marriage will also equally belong to both spouses.
Missouri is an equitable distribution state. In equitable distribution states like ours, marital assets will be divided equitably between the spouses during a divorce. While this means equal and fair, it does not necessarily mean 50/50. For example, if one spouse with a higher income paid for some of their partner’s debts or expenses, the court may decide that the higher-income spouse should receive more than 50% of the divided marital property during divorce proceedings.
Family law judges divide marital assets as equitably and fairly as possible. Still, both parties may not receive an equal share of the marital property. Several factors may influence the decision on how marital property is divided, including the length of the marriage, the age and health of either spouse, whether either party has custody of children, and each spouse’s income and earning capacity.
What Property Can Be Divided in a Divorce?
The marital estate will be divided equitably during property division between both parties, provided no prenuptial or postnuptial agreement is in place.
Types of property that could be considered in calculations and divisions could include the following:
- Bank accounts
- Business ownership and interests in businesses
- Dividends and stock options
- Family pets and other animals
- Household furnishings
- Injury claim settlements
- Insurance policies
- Marital debts
- Military pensions
- Motor vehicles
- Stocks, bonds, and other securities
- The marital home
- Vacation homes and timeshares
- And any other asset of value
To defend your property in a divorce, you should seek professional legal representation and assistance in drafting a prenuptial or postnuptial agreement.
What is a Prenuptial Agreement?
A prenuptial agreement (sometimes simply called a prenup) is a marriage contract between two partners before they marry. The contract defines each spouse’s financial rights and responsibilities. The document usually outlines each spouse’s debts, assets, and property. It specifies how these assets should be handled and divided in the event of an eventual divorce. Without a valid prenuptial agreement or other agreement, Missouri’s equitable distribution rules will go into effect, and the courts will decide how marital property should be divided. By considering property division issues in advance and writing a valid prenuptial agreement, the spouses may be able to avoid lengthy, costly, and frequently contentious divorce litigation if their marriage should ever end.
Legally enforceable prenups can help high-income or uneven-income spouses have some level of comfort and certainty about their financial situation in cases of the dissolution of marriage. Without a prenup, a divorce settlement could result in one spouse losing more of their income than they are comfortable with.
Kansas City has several legal requirements for a prenuptial or postnuptial agreement to be considered legally valid and enforceable. Divorce attorneys from our Kansas City, MO, law firm can provide valuable legal guidance in drafting a prenuptial marital contract.
What Can Prenuptial Agreements Decide?
Prenuptial agreements can cover several marital issues related to your personal assets, property, and debts that belong to you, your spouse, or both. Rather than letting a family law judge decide how property is divided in a divorce case, your prenuptial agreement will outline these legal matters, smoothing the process and making things easier for everyone involved.
A prenuptial agreement can accomplish the following:
- Clarify how death benefits will be divided
- Decide how inheritances should be handled
- Determine who should get the primary residence and any other real estate property
- Establish how premarital and marital debts will be settled
- Identify which assets are to be classified as marital property or separate property
- Keep business interests separate from marital assets
- Officially establish custody of pets
- Outline terms for spousal maintenance or alimony
Without a prenuptial agreement, a family law court will decide the divorce settlement. The settlement will be based on our state’s equitable distribution doctrine, meaning that marital assets will be divided in a way that the judge believes to be equitable and fair, considering multiple factors relevant to marriage and divorce. A prenuptial agreement allows you to establish certain wishes for your divorce settlements long before divorce papers are signed.
What Cannot Be Included in a KC Prenup?
While prenuptial agreements and other marital contracts can determine several legal and financial matters related to marriage and its dissolution, these contracts have certain limitations.
A prenuptial agreement cannot determine legal issues such as child support obligations or child custody in Missouri. The courts must decide these matters based on the children’s best interests at the time of divorce.
Any provisions within the prenup that could be considered unconscionable or provide an incentive to eventually divorce may be barred from being included in the prenup document. If your legal document violates public policy or state law, it will be rendered unenforceable. Should a clause violate policy or law, the court can strike the unenforceable provision or render the entire document invalid.
What is a Sunset Clause?
A sunset clause is a provision that can be included in prenuptial agreements that specify a specific time at which the contract will expire. For example, sunset clauses may state that the prenup will expire after the couple has been married for one or two decades. Other married couples may elect to include a sunset clause that terminates the prenuptial agreement upon the birth of a child or some other significant life event.
Prenuptial agreements with a sunset clause that has gone into effect will no longer be enforceable after the expiration unless you and your spouse decide to revise the provision or write a postnuptial agreement.
Is Your Prenup Legally Enforceable?
Certain legal requirements must be met in Missouri for prenuptial agreements to be legally valid and enforceable. Those preparing prenuptial or postnuptial agreements are strongly encouraged to retain professional legal counsel from experienced family law attorneys.
Some of the basic requirements of Missouri prenuptial agreements include the following:
- Both parties must be completely honest about their property, assets, debts, and finances before signing the prenuptial agreement
- Both spouses must be given significant time to review and contemplate the agreement before signing. Some courts require at least seven days, but we recommend that you take as long as you need
- The two spouses should be represented by separate lawyers when signing the agreement. While some may waive this provision, a judge will look to whether each spouse had the opportunity to seek legal advice about their rights and responsibilities before signing
Prenuptial agreements cannot be signed under duress. Suppose one party has been forced into signing the prenup against their will. In that case, the document will not be considered legally valid.
Schedule a Case Evaluation with Our Kansas City Family Law Attorneys Today
Our state’s equitable distribution laws dictate how property division should unfold in the event of a divorce between married couples. Judges will ultimately decide divorce settlements without a prenuptial or postnuptial agreement based on several factors relevant to the marriage. We advise you to consider the many benefits of drafting a prenuptial agreement to protect your separate and marital assets and ensure that things are divided as you and your spouse wish.
Contact our lawyers for legal assistance today. You can schedule an in-depth consultation with our legal team by calling us at (816) 307-9752.