1. Council Rock School District
Accelerated
Business Law
Marriage Law
&
Legal Rights

2. *NEFE Personal Finance Survey, April 2017

3. *NEFE Personal Finance Survey, April 2017

5. Why is this a financial issue?
Couples and Money
Impact on Finances
31% of all people in a relationship had lied to their partner or spouse about money*
58% of them hid cash
54% of them hid a purchase
34% of them lied about finances, debt, money earned
30% of them hid a statement or bill
15% of them hid a bank account
*NEFE Personal Finance Survey, April 2017

6. Major Impact on Finances
Couples and Money
68% of people say a current or past relationship was affected by financial deceptions
67% of them say it caused an argument
42% of them say it caused less trust in relationship
19% of them say it led to separation of combined finances
16% of them say it led to divorce
15% of them say it caused them to become closer/grow together
9% of them say it causes less privacy in relationship
*NEFE Personal Finance Survey, April 2017

7. Bell Ringer
Does anyone know the origin of using a ring as an engagement token?
The circle shape represents eternity and that the marriage will continue forever
What are some other things you know about marriage customs and laws?

8. Pennsylvania Marriage Law
Minimum age in Pennsylvania is 15.
Minors age (15) must have both the written approval of a judge of the Orphans’ Court Division of the Common Pleas and a written consent from a parent or legal guardian (16-17, just parents).
Legal age to apply for a marriage license in Pennsylvania is 18
Both applicants seeking a marriage license must appear together in person
There's a three (3) day waiting period in Pennsylvania.

9. The Marriage Contract
It is a Civil Contract that comes into existence when you become engaged
(a promise to give up the legal right to be single)
Under common law you could sue if one party breaks off the engagement
Question: Who gets the ring?
Many states consider the ring a contingency gift,
Some courts often look to who ended contract

10. The Marriage Contract More Than a Personal Relationship
Agreement containing consideration between two parties who have the capacity to contract, by mutual consent for a legal purpose
(promise to give up legal right to remain single)
More Than a Personal Relationship
The engagement represents an offer and acceptance of the contract for marriage
During engagement, the marriage contract is in its executory stage.
This stage ends when the wedding occurs.

11. The Marriage Contract is Business Related
Marriage involves many decisions and responsibilities
Name Changes (Provided no fraud)
Spousal Support
Privileged communication
The law considers certain relationships private and confidential like Doctor/Patient, Lawyer/Client
Inheritance
Automatically entitled to a share of the deceased’s estate
Tax Breaks from Government
File Joint Tax returns

12. Rights and Duties Right to support by your spouse when necessary
Right to inheritance from deceased spouse
Statutory 1/3 Rule Share v. “Last Will” Share
One day or 100 years… Doesn’t matter
Right to property if the marriage ends
Right to compensation to continue your standard of living if the marriage ends
Right to file a joint income tax return

13. Rights and Duties
Marriage Contracts change your legal status by agreement
Gives both Husband and Wife new rights and duties
Intended to provide protection for both parties
Living together doesn’t give you this special protection

14. Types of Marriage Every state has different rules and laws
Common-law: An informal type of marriage created by the parties themselves
Today 11 states and DC still allow common-law marriages.
The remaining 39 states only recognize ceremonial marriage.
However, under US Constitution’s Full Faith & Credit Clause every state must treat a valid common-law marriage as valid

15. Common-Law Marriage
STATES THAT RECOGNIZE COMMON LAW MARRIAGE: Only a few states recognize common law marriages:
Alabama
Colorado
District of Columbia
Georgia (if created before 1/1/97)
Idaho (if created before 1/1/96)
Iowa
Kansas
Montana
New Hampshire (for inheritance purposes only)
Ohio (if created before 10/10/91)
Oklahoma (possibly only if created before 11/1/98. Oklahoma’s laws and court decisions may be in conflict about whether common law marriages formed in that state after 11/1/98 will be recognized.)
Pennsylvania (if created before 1/1/05)
Rhode Island
South Carolina
Texas
Utah

16. The Requirements of Marriage
Common-Law Marriage
IF YOU LIVE IN A STATE THAT DOES RECOGNIZE COMMON LAW MARRIAGE:
You must: "hold yourself out to be married" (by telling the community you are married, calling each other husband and wife, using the same last name, filing joint income tax returns, etc.)
This can create a common law marriage
Common law marriage makes you a legally married couple in every way, even though you never obtained a marriage license.

17. The Requirements of Marriage
Common-Law Marriage
IF YOU LIVE IN A STATE THAT DOES RECOGNIZE COMMON LAW MARRIAGE:
If you choose to end your relationship, you must get a divorce, even though you never had a wedding.
Legally, common law married couples must play by all the same rules as "regular" married couples.
If you live in one of the common law states and don't want your relationship to become a common law marriage, you must be clear that it is your intention not to marry.

18. Types of Marriage Every state has different rules and laws
Ceremonial Marriage: In early colonial days a marriage ceremony had to be performed by a cleric or magistrate in a specific manner.
Today, most states require some form of ceremony to formalize a marriage
Must declare you are married in the presence of a person authorized by the state

19. Types of Marriage Every state has different rules and laws
Covenant Marriage: Adopted by Arkansas, Arizona, and Louisiana, is an attempt to reduce divorce and protect children
The parties must have counseling before the wedding and during the marriage to solve conflicts
Can only divorce after a period of separation

20. The Requirements of Marriage
Each state has its own laws regarding marriage
Age – 18 without parents consent
Younger with parents’ consent,
Court permission, if emancipated
What age do you think should be the minimum age for a person to marry with and without parental consent?
Should this age be the same for males and females?

21. The Requirements of Marriage (continued)
Marriage License – a certificate that gives two people permission to marry
Waiting Period – Pennsylvania = 3 days
Must appear in person (No Proxy)
Some states:
Blood Tests/Physical Exams. – tests for communicable diseases (AIDS, syphilis)
Proxy Marriage
Use of various names
Provided NO fraud is committed

22. Rights and Duties
Many employers also give certain rights to their employee’s spouse
Insurance coverage, death benefits, other rights etc…
This duty cannot be relinquished, even by agreement
This bundle of rights is often called the “right of consortium.”

23. Premarital or Prenuptial Agreement
Before marrying:
People can enter into contracts concerning the real and personal property
This set forth how their property will be handled if marriage ends by death or divorce
Why don’t more people enter into a pre-nuptial?

24. Premarital or Prenuptial Agreement
Must be in writing and signed by both parties
Usually Video Recorded
Must make honest statements and disclose all assets to each other
What are some advantages and disadvantages of prenuptial agreements?

25. Premarital or Prenuptial Agreement can cover…
Rights and Obligations of each party regarding any property
Rights to buy, sell, manage, or control real or personal property
Disposition of real and personal property upon separation, death, or divorce
Change or elimination of support

26. Write a Pre-Nuptial Agreement for what you know today!
Google samples of pre-nuptial agreements
What will you included?
Car, possessions, money, and anything else of real value
What happens if your spouse wants a divorce, leaves, or cheats
How long will this agreement last?
What about children?
What about death of spouse?

27. Prohibited Marriages Bigamy and Polygamy
Bigamy – 2 spouses at the same time
Polygamy – more than 2 spouses at once
Must be practiced in life for protections of religion
Many states consider such marriages as illegal and a crime
If someone gets married without the knowledge of the previous marriage than on the death of the first spouse the second marriage becomes legal

28. Prohibited Marriages Marriage between relatives (Many states)
Consanguinity (blood)
Affinity (marriage)
Consanguinity (Blood)
Mother/Father
Grandmother/Grandfather
Daughter/Son
Granddaughter/Grandson
Aunt/Uncle
Sister/Brother
Niece/Nephew
Affinity (Marriage)
Mother/Father
Stepmother/Stepfather
Step-grandson/Step-granddaughter
Stepdaughter/Stepson
Step-grandmother/Step-grandfather
Mother-in-law/Father-in-law
Daughter-in-law/Son-in-law
Granddaughter-in-law/Grandson-in-law
Marriage can be voided and Child would be illegitimate

29. How Marriage Ends
Annulment- Declaration by the court that a marriage was never valid
Legal separation- Called limited divorce, is a court judgment ending the right to cohabitation
Child custody and support
Divorce- Declaration that the marriage has come to an end

30. Community Property States
Defined: Most property acquired during the marriage (except for gifts or inheritances)—is owned jointly by both spouses and is divided equally upon divorce, annulment, or death.
Division of community property may take place by item, by splitting all items or by values. In some jurisdictions, such as California, a 50/50 division of community property is strictly mandated by statute
Arizona California
Idaho Louisiana
Nevada New Mexico
Texas Washington
Wisconsin Alaska-Opt In

31. Impact on Business
If you start a business before marriage, keep it going and the value increases during marriage and then get divorced, your spouse may be able to claim part of the increase in the value as community property.
Most lawyers advise spouses to keep their business property and accounts separate.
If they commingle it with community property, it can become community property should they get divorced.

32. Impact on Business
Bank accounts or brokerage accounts before marriage, if they are separate
KEEP all reinvest interest, dividends & capital gains put back into that account
Don't put your paycheck into it or use it to pay rent
Gifts or inheritance, keep it in a separate account in your name
Own a rental property, don't use community income to pay the taxes or make repairs

33. Impact on Business Pre-marriage debt
Community-property states, any debt a spouse takes on before marriage remains that spouse's sole debt after marriage.
Getting married doesn’t make your spouse responsible for your earlier debts
Even if they help repay, they didn’t co-sign the loan.
But you could be affected in this way: If your spouse defaults on loan, the creditor would first look at separate property… if that wasn't enough, the creditor could try to get their half of any community property
Any debts taken on after marriage are generally community debts, and each spouse is responsible for the entire amount.

34. FINALS Class Work Marriage Exam is next class-Thursday Quiz- 59 Points
Seniors FINAL is Monday, June 5th!!!
Practice Exam and Review Posted!
On Faculty Webpage
All Underclassman
Tuesday, June 13th