Wedding season is in full swing, but most people enthusiastically sharing the words “I do” are not aware of the legal implications of these two small words. Before walking down the aisle, learn more about these 5 legal rights that change once two individuals are married:
1. You are no longer acting as a Single Individual. Rather, once you are wed, you are acting as a marital partner. What does that mean? Even if you come into the marriage with separate property or separate interests, you may be creating a marital interest by your efforts and actions after the date of marriage. For example: if you own a house prior to the date of the wedding and there exists a mortgage on this house, then every mortgage payment made after the date of the wedding is technically creating a marital interest in the value of your separately owned house. This concept also applies to business interests. If you own and operate a business prior to the marriage, any business activities you conduct after the date of the wedding are considered actions by the marital unit. Such marital actions may lead to the creation and increase of a marital interest, marital component, or marital value of the business.
2. Selling Property may require a Marital Act. Regardless of the purchase date of real property and even if said property is solely in one party’s name, the other spouse may still need to sign off on any refinance or sale of the real property after the date of marriage. But the property is not in their name? The title ownership being in one name does not matter since the two of you are married.
3. Acquiring Property becomes a Marital Activity. When you say “I do,” you are also legally relinquishing the ability to maintain separate, individual property in most situations. Regardless if the new property is a house, a car or even retirement benefits, the property purchased or acquired during the marriage is marital property. This reality exists even if only one spouse is a named owner, and, in unique circumstances, a marital interest could apply to property that is held by a third party on behalf of one of the spouses.
4. Tax Rights Change. Since the government views your marriage as a combination of two single individuals into a marital unit, you are permitted to file as “married.” Filing under the “married” status often provides many advantages in the form of adjusted tax brackets, standard deductions, and tax credits. Generally, a gift or transfer of money or property between spouses is an unlimited, tax-free transfer so long as both spouses are U.S. Citizens. Consulting with an Accountant can help a married couple better understand a fitting tax strategy for their specific situation.
5. Inheritance Rights Automatically Transfer to the Spouse. Under North Carolina law, a surviving spouse has automatic rights to the property of the deceased spouse, ahead of other heirs and debtors. This “front of the line” status applies to both real property and personal property. The exact amount of money and property received by a spouse and other heirs will be determined through the administration of the deceased spouse’s estate, also referred to as the “probate process.” Additionally, spouses can own real property as tenancy by the entireties, which includes the right of survivorship. The right of survivorship allows the surviving spouse to own the property outright after the death of their spouse. This is particularly important should neither spouse want real property to get caught up in the probate process to the detriment of the surviving spouse.
Although this list is by no means an exhaustive list of all legal rights and obligations that change on the wedding day, having an idea of what changes beyond your marital status is important. Please note: If you and your soon-to-be spouse have signed a Premarital Agreement, more commonly referred to as a “Prenup,” then your legal rights will likely be different from this list. A Prenup empowers soon-to-be spouses to define how their legal rights change on the wedding day in lieu of accepting the law’s automatic changes to legal rights, some of which are reflected on this list. Regardless if you have a prenup or not, it is important to review the status of your marital legal rights with a Family Law Attorney.
If you or someone you know is getting married, our Modern Legal Team is here to help.
Please note: these educational materials are based on North Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Written by: Theresa E. Viera
