Law for Business Mr. Bernstein Notes, pp Legal Considerations of Marriage December 5, 2014

Law for Business Mr. Bernstein Marriage If one party proposes marriage and the other accepts, a binding contract results If both mutually agree to end the engagement, the contract is annulled Breach-of-promise suits restricted in many states If a woman breaks off the engagement, the ring usually must be returned 2

Law for Business Mr. Bernstein Marriage Requirements vary by state Typically need a license from a city or township May be a minimum age Some states require blood tests Any authorized civil or religious official may perform the ceremony Some states recognize Common-Law marriages after years of living together 3

Law for Business Mr. Bernstein Marriage The most important duty is toward children Many contracts and other economic obligations are entered into jointly 4

Law for Business Mr. Bernstein Divorce Many states have no-fault divorce laws Property division is often guided by Common Law Property goes to the party who brought it into the partnership, before or during the marriage New Jersey and many others are “Equitable Property” states – court determines fair distribution 5

Law for Business Mr. Bernstein Divorce If a business is considered marital property, an appraisal of valuation must take place, including assets and earnings potential Key questions: Did the business start during the course of the marriage? Did the non-owner contribute in any way to the business? Or, did the non-owner spouse contribute to the family and the marriage in a way that allowed the owner-spouse to ultimately succeed in the business? Will the business be sold or will one spouse buy out the other? Who should bear responsibility for any present or future tax liabilities associated with the business? 6

Law for Business Mr. Bernstein Review Case Studies, p 289,