Law for Business

Mr. Bernstein

Notes, pp 279-288Legal Considerations of Marriage

December 5, 2014

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Law for BusinessMr. Bernstein

MarriageIf one party proposes marriage and the other

accepts, a binding contract resultsIf both mutually agree to end the engagement, the

contract is annulledBreach-of-promise suits restricted in many statesIf a woman breaks off the engagement, the ring

usually must be returned

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Law for BusinessMr. Bernstein

MarriageRequirements vary by stateTypically need a license from a city or townshipMay be a minimum ageSome states require blood testsAny authorized civil or religious official may perform the

ceremonySome states recognize Common-Law marriages after

years of living together

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Law for BusinessMr. Bernstein

MarriageThe most important duty is toward childrenMany contracts and other economic obligations are

entered into jointly

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Law for BusinessMr. Bernstein

DivorceMany states have no-fault divorce lawsProperty 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

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Law for BusinessMr. Bernstein

DivorceIf a business is considered marital property, an appraisal of valuation must

take place, including assets and earnings potentialKey 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?

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Law for BusinessMr. Bernstein

Review Case Studies, p 289, 11-15