Connect with us

Company

‘I want to hurt him the same way he hurt me’: My husband sprung a prenup on me 3 days before our wedding. Now I’m starting my own business and want to amend it

Published

on


Dear Quentin,

I was married just over 2 years ago and I have been in the same relationship for more than 10 years. We have both been single parents from prior relationships. Considering our age gap, he is much more successful in life as a sole proprietor. He’s 56, and I’m 40. He talked about a pre-nuptial agreement during our relationship, but he did not spring it on my until 3 days prior to our wedding day.

We discussed nothing as to what would go into the agreement. I was severely depressed, cried uncontrollably for days. Even reliving this is causing heartache. I consulted with my attorney but decided to sign it rather than not go through with the wedding. For two years, I asked for a copy and he couldn’t find it: When I finally had enough, I found it in his office, and made myself a copy.


‘I’m angry at myself now because there are provisions I would have included had I had more time to think about it.’

I still don’t fully understand what happened, and I’m angry at myself now because there are provisions I would have included had I had more time to think about it. My parents will be willing me a home, and a nice considerable amount of cash. I’m not in his will, there is no life-insurance policy, and I’m not listed on the deed of the second vacation home “we” bought before we married, but he wants to say how everything is ours.

Technically, it isn’t. Now that I am about to start my own venture, which may be lucrative, potentially six figures a year, I want to amend the prenuptial agreement. In a way, I want to hurt him the same way he hurt me. It’s caused a lot of resentment on my end as I feel he never trusted me, although I have never asked him for anything. If he dies tomorrow, what is going to happen to me?

Should I amend the prenuptial agreement? Is it possible that the current prenuptial agreement is null and void?

Postnuptial State of Mind in Pennsylvania

You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com

Dear Postnuptial,

You should know what’s in your own prenuptial agreement, given that’s it’s a legal document you both signed. I don’t understand why you did not have a copy when you originally signed the document, and why you didn’t actively insist on a discussion. With the help of your lawyer, that was your job to make sure that happened. You had the choice to call off the wedding and/or sit down and read every page. I’m not saying this to be provocative, but to remind you that taking responsibility for this sequence of events is more constructive than taking umbrage at your husband.

But let’s be very clear: Three days notice of a prenuptial agreement before your wedding without any willingness to compromise on the details or discuss them is sorely lacking in consideration, and is a chaotic and unsettling start to a marriage. I understand why it left you reeling, and why you felt both confused and angry. Prenups are enforceable in Pennsylvania, which is a marital property state, meaning that — in the absence of a prenup — assets are distributed in a fair and equitable manner. Inheritance is not considered marital property, so you should have no worries on that front.

Your prenuptial agreement should reflect that you both maintain your separate finances/assets in the event you divorce. In other words, what’s his is his and what’s yours is yours. He can’t have it both ways. According to Rowe Law Offices in Pennsylvania, “Historically, courts sometimes set aside premarital agreements when they were unreasonable; left one spouse destitute; were made without full disclosure of a spouse’s property and debt; were signed under duress or without mental capacity; were the product of fraud or misrepresentation; and so on.”

Should you amend the prenup? You can certainly create an amendment, as long as both of you are in agreement, or sign a new postnuptial contract that supersedes the original contract. But that is a question only you can answer based on what the prenup actually says, and whether you lawyer believes it is written in a way that gives you both the same financial independence post-divorce. The whole business seems messy and unpleasant. It was not a good way to embark on a marriage and, as a tangent to your question, it’s not a good way to continue one.

Certainly something needs to change. From the little you have said, it appears to be a marriage that lacks transparency and mutual respect. You need a financial therapist, a mediator or your own counselor to examine the causes and cures of this toxic atmosphere. Starting a business should be a time of optimism and joy, not steeped in an “I’ll show you” entrepreneurial revenge fantasy. Getting married is the biggest financial decision you will make in your life, if only because the toll divorce takes on an individual, and because you may end up taking turns supporting each other.

If this marriage ends, you should both leave with what you brought into it. Given that, the real issue here is not what happens in the event of a divorce, but everything else that comes before it.

The Moneyist:My wife has homeschooled our son and our best friends’ son since September due to COVID-19. Is it too late to bring up money?

Hello there, MarketWatchers. Check out the Moneyist private Facebook
FB,
+0.87%

 group where we look for answers to life’s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

By emailing your questions, you agree to having them published anonymously on MarketWatch. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Company

These money and investing tips can help you stay upright against the market’s headwinds

Published

on

By


Don’t miss these top money and investing features:

These money and investing stories, popular with MarketWatch readers over the past week, can give you greater knowledge about the financial markets’ current condition as you monitor your portfolio and plan ahead. Plus, check out several short videos about whether to include bitcoin and other cryptocurrency in your portfolio and how to go about it if you do.

Sign up here  to get MarketWatch’s best mutual funds and ETF stories emailed to you weekly!

INVESTING NEWS & TRENDS
A long-held investing belief — that stocks always beat bonds over the long term — turns out to be untrue

Recent history has shown that equities tend to outperform, but a review of returns back to 1793 reveals a different story.
A long-held investing belief — that stocks always beat bonds over the long term — turns out to be untrue

The Dow and the Nasdaq are diverging. Why that’s honey for stock market bears

Disconnected trading pattern hasn’t looked so ominous since the internet bubble years.
The Dow and the Nasdaq are diverging. Why that’s honey for stock market bears

Why Generation ‘I’ — YOLO investors who’ve never seen a bear market — should worry us all

First-time stock investors are making money now but market veterans know how this story ends.
Why Generation ‘I’ — YOLO investors who’ve never seen a bear market — should worry us all

5 things this index pioneer wants you to know about today’s investing challenges

Straight advice on money and market behavior from David Booth of Dimensional Fund Advisors.
5 things this index pioneer wants you to know about today’s investing challenges

Why switching investment strategies to get a market edge only leaves you behind the pack

Pick an investment plan with a good long-term record and follow it.
Why switching investment strategies to get a market edge only leaves you behind the pack

Space infrastructure is the next investment frontier and SPACs are a launch pad

The global space industry is expected to generate revenue of at least $1.4 trillion by 2030
Space infrastructure is the next investment frontier and SPACs are a launch pad

5 things to watch out for before you invest in SPACs

Similarities to the dot.com and subprime bubbles are unmistakable.
5 things to watch out for before you invest in SPACs

Long-tenured CEOs can take a business from good to great — and these companies have them

A vision for success and shareholders willing to see it through can give a business a competitive edge.
Long-tenured CEOs can take a business from good to great — and these companies have them

Franklin Templeton’s view on interest rates

Sonal Desai, CIO for Franklin Templeton’s Fixed Income Group, discusses her expectations for U.S. and global interest rates.
Franklin Templeton’s view on interest rates

Educating today’s investors about maneuvering through markets

Joe Moglia, former chairman & CEO of TD Ameritrade, discusses how investors can better maneuver volatile markets with assistance from trading platforms.
Educating today’s investors about maneuvering through markets

These 3 alternative income streams may boost portfolio returns

As traditional income strategies, like bonds and dividend stocks, got challenged by the pandemic, some investors turned to pass-through securities in search of income. Here’s what you need to know.
These 3 alternative income streams may boost portfolio returns

What Coinbase’s public debut means for bitcoin and crypto

The listing of Coinbase, the largest bitcoin exchange in the U.S., introduces a new way to invest in cryptocurrencies.
What Coinbase’s public debut means for bitcoin and crypto

Why Mike Novogratz sees bitcoin reaching $500,000 by 2024

Galaxy Digital’s Mike Novogratz explains the outlook for crypto as Coinbase goes public.
Why Mike Novogratz sees bitcoin reaching $500,000 by 2024

How to devise long-term strategies for investing in digital assets

Katie Stockton and Bryan Routledge discuss strategies and the rationale for holding crypto with Barron’s Ben Levisohn.
How to devise long-term strategies for investing in digital assets



Source link

Continue Reading

Company

Opinion: I took advantage of the 2020 RMD rule but now my 1099-R looks wrong — what should I do?

Published

on

By


Q: I took advantage of the 2020 RMD rule and returned what I had taken from my IRA thinking there would be no taxes. I just got a 1099-R showing the full RMD. That can’t be right. How do I correct it?

—Pauline

A.: Pauline,

If the 1099-R is incorrect, you will need to contact the firm that issued the statement to get it corrected. However, the 1099-R is probably correct.

Read: Are there new RMD rules this year?

Under the law, the firm issuing the 1099-R has no responsibility for reporting how much of a distribution is taxable. That responsibility rests on your shoulders as a taxpayer. The issuing firm need only report what was paid out of the IRA on 1099-R.

Not sure where to retire? Let us help you find the right spot

That does not mean you will pay any tax. Any funds returned to the IRA by Aug. 31, 2020 is considered a rollover and is not taxable. Normally, Required Minimum Distributions (RMD) are not eligible for rollover, but IRS guidance after enactment of the CARES Act that waived RMD for 2020 changed that. The guidance stated the normal 60-day time limit for rollovers would not apply and instead instituted a fixed deadline of Aug. 31, 2020 to return such distributions and avoid taxation.

Read: It’s not too late to save on your 2020 tax bill — here’s how

I get similar questions about 1099-Rs every year. The reporting of the gross distribution looks like an error but in most cases, it is correct and the person receiving it simply hasn’t learned how it is accounted for yet.

Here’s how the accounting typically works.

As with any gross amount reported on Form 1099-R, you declare the amount that is not taxable when you file your 2020 tax return. What I hear most tax preparers would do in your situation is put the gross distribution amount from 1099-R on line 4a as per the normal procedure. Then, they would place a zero in 4b of your Form 1040, and put a note on the return near those lines that it was “returned to the IRA under the CARES Act,” “CARES Act rollover,” “CARES Act,” or simply “Rollover.”

Read: These are the best new ideas in retirement

If you did not return all of distribution by the deadline, the portion that was not returned would be taxable. You would put that number on line 4b.

Read: 5 things to do if you inherit a Roth IRA

As I mentioned a moment ago, the discrepancy between the gross distribution reported and what should actually be taxable comes up in other situations. Three of the most common are other rollovers, Qualified Charitable Distributions (QCD), and distributions from accounts that had received after-tax contributions.

In all those cases, the reporting process looks like what I described above. You put the gross distribution on line 4a and the taxable portion on Line 4b. Then note why the numbers are different with “rollover,” “QCD,” or “See Form 8606” on the 1040. Form 8606 is the form used to determine the taxable amount of an IRA distribution when nondeductible contributions have been made to any of one’s IRA accounts.

If you have a question for Dan, please email him with ‘MarketWatch Q&A’ on the subject line.

Dan Moisand’s comments are for informational purposes only and are not a substitute for personalized advice. Consult your adviser about what is best for you. Some questions are edited for brevity.



Source link

Continue Reading

Company

Video: Why Mike Novogratz sees bitcoin reaching $500,000 by 2024

Published

on

By



Galaxy Digital’s Mike Novogratz explains the outlook for crypto as Coinbase goes public.





Source link

Continue Reading

Trending