look before you leap - extension dodge county€¦ · look at portfolios, merchandise, brochures...

B2707

Karen P. Goebel

Linda Roberson

Joan Kinney

Look before you leapA guide to the legal and financial implications

of marriage . . . and remarriage in Wisconsin

University of Wisconsin-Extension Cooperative Extension

■■ Making sure you’re eligible . . . . 1

■■ Setting the date . . . . . . . . . . . 1

Tax implications . . . . . . . . . . . . 1

Wedding insurance . . . . . . . . . . . 2

■■ Getting married . . . . . . . . . . . 2

Wedding budget . . . . . . . . . . . . 2

Preparation . . . . . . . . . . . . . . . 2

Worksheet—Plan for the cost of… . . . 3

Marriage license . . . . . . . . . . . . 4

Marriage ceremony . . . . . . . . . . . 5

■■ Changing your name . . . . . . . . 5

Deciding whether to change . . . . . . 5

Updating the records . . . . . . . . . . 7

❚ Driver’s license or photo ID . . . . 7

❚ Motor vehicle registration . . . . . 7

❚ Passport and visa . . . . . . . . . . 7

❚ Credit cards . . . . . . . . . . . . 7

❚ Bank accounts and loans . . . . . . 8

❚ Safe deposit box . . . . . . . . . . 8

❚ Insurance . . . . . . . . . . . . . 8

❚ Pension and retirement plans. . . . 8

❚ IRS and Social Security . . . . . . 8

❚ Selective Service . . . . . . . . . . 9

❚ Voter registration. . . . . . . . . . 9

■■ Clarifying property ownership . . 9

Wisconsin Marital Property Act . . . . 9

❚ Mixing marital and non-marital property . . . . . . . 12

❚ Effects of title . . . . . . . . . . . 13

Management and control rights 13

Survivorship marital property . 13

Marital property agreements . . . . . 13

Credit and debt . . . . . . . . . . . . 16

Employment benefits . . . . . . . . . 18

❚ Pension and retirement plans . . . 18

❚ Life insurance. . . . . . . . . . . 19

Management and control of marital property . . . . . . . . . . . . . 20

Gifts of marital property . . . . . . . 20

Wills and trusts . . . . . . . . . . . . 21

■■ Organizing your family records . 24

Household inventory . . . . . . . . . 24

Advance directives. . . . . . . . . . . 24

❚ Power of Attorney for Health Care 24

❚ Living will (Declaration toPhysicians) . . . . . . . . . . . 24

❚ Power of Attorney for Financesand Property . . . . . . . . . . 25

Financial records . . . . . . . . . . . 26

❚ Checking and savings accounts . . 26

❚ Safe deposit box . . . . . . . . . 26

❚ U.S. Savings Bonds and investments . . . . . . . . . 27

❚ Wills and trusts . . . . . . . . . . 27

Insurance . . . . . . . . . . . . . . . 27

❚ Disability or income continuation . . . . . . . . . . 27

❚ Health . . . . . . . . . . . . . . 27

❚ Homeowner or renters’ and liability . . . . . . . . . . . 28

❚ Life . . . . . . . . . . . . . . . . 28

❚ Motor vehicle . . . . . . . . . . . 29

Where to keep records and papers. . . 30

Resources . . . . . . . . . . . . . . . . 31

Index of technical and legal terms . 33

University of Wisconsin-Extension ■ Cooperative Extension, 2000

Checklist ✓

Ignorance is not necessarily bliss — particularly

if you are getting married or remarried, and

are dealing with legal matters and personal deci-

sions. Since marriage is a legal contract, certain

aspects are regulated by law.

The information in this booklet is based on

Wisconsin law — including the Wisconsin Marital

Property Act, which took effect on January 1, 1986 —

and reflects legislation in effect as of 2000. This

material presents options and guidelines for

making personal decisions. However, this informa-

tion in no way substitutes for legal services and

advice.

This publication is designed as a checklist to

help you make legal and financial decisions

before and during your marriage. Technical and

legal terms are in bold letters, defined on first

mention and indexed on pages 33-34.

Making sureyou’re eligible

First, you need to know that you are legallyable to marry. To be certain, check these provi-sions based on the marriage chapter of theWisconsin Statutes:❚ Age — If competent — mentally able

and capable — anyone may marry at agel8 or over. For those 16 to 18, a licensemay be issued with the written, notarizedconsent of a parent, guardian or custo-dian. Consent forms are available in thecounty clerk’s office. No one under l6 canmarry under any circumstance.

❚ Relationship — In general, personscloser in relationship than second cousinsmay not marry each other. However, mar-riage may be contracted between firstcousins where, at the time of marriagelicense application:

— The female has attained the age of55 years; or

— Either applicant submits an affidavit

— a written, witnessed statement offacts — signed by a physician statingthat person is permanently sterile.

❚ Divorced persons — Whether divorcedin Wisconsin or elsewhere, no one canmarry again in Wisconsin until six monthshave elapsed since the date the divorce wasgranted. An earlier marriage is invalid —not legal.

❚ Out-of-state/non-resident — If aWisconsin resident who is prohibited frommarrying in this state goes into anotherstate or country and marries, and thenreturns to live in Wisconsin, the marriageis invalid for all purposes in Wisconsin.Note: Common-law marriage — cre-ated by living together as husband andwife for a specified time period — is recog-nized as a valid marriage in Wisconsin onlyif you moved here from a state that recog-nizes this type of marriage as legal.

Wisconsin does require legally dissolvingsuch a common-law marriage before youare eligible to remarry in Wisconsin.

Setting the date

Tax implicationsMarriage changes your options for filing

income tax forms. As a married person, youmust either file a joint return with your spouseor file using the “married, filing separately”status. You can no longer file a single return(see also IRS and Social Security, page 8).

This is true for the entire calendar year inwhich you are married — even if you marry onthe last day of the year.

Marriage can create either a tax benefit or atax burden, depending on a couple’s circum-stances. Income tax is a graduated tax —the percent of tax owed increases as incomeincreases. Different cutoffs apply to the variousbrackets, depending on filing status.

As of 2000, a single person owes taxesbased on the lowest federal rate on the first$26,250 of income earned. Couples filingjointly enjoy this lowest rate on the first$43,850 of their combined incomes. Marriedpersons filing separately have their taxesassessed at the lowest bracket on the first$21,925 of their incomes — that is, half of thejoint return cutoff. Thus, if one spouse earns$43,850 per year and the other earns nothing,the couple will benefit by filing a joint returnand marriage actually reduces the income taxthey will owe.

But what if each spouse earns $26,250 peryear? Instead of paying all their tax at thelowest rate as they did before their marriage,$8,650 of their income — $26,250 + $26,250- $43,850 — will be taxed at a higher rate thanwould have been the case if they had not mar-ried. Since few couples can afford to have onespouse at home and not working for pay, mostnewly married couples are burdened by thismarriage penalty.*

A G U I D E T O T H E L E G A L A N D F I N A N C I A L I M P L I C A T I O N S O F M A R R I A G E I N W I S C O N S I N 1

* Bills to eliminate the marriage penalty are frequentlyintroduced in Congress. Tax brackets are adjusted forinflation each year.

Another tax implication for older couplesoften goes unnoticed. The law provides for aone-time exclusion from capital gains

tax on the first $l25,000 of gain on a principalresidence sold by a person over age 55. If youare married, the exclusion can be used onlyonce. A husband and wife cannot each claimthis exclusion at separate times. If you marrysomeone over 55 who has already used theexclusion, you lose your right to take advantageof this tax break. Thus, older persons contem-plating marriage may be well advised to selltheir homes before the wedding date.

Wedding insuranceMost services you’ll engage such as hotels

and caterers usually require non-refundabledeposits. If your wedding may be cancelled orpostponed — because, for example, a closefamily member becomes ill or you break a leg— you may be tempted to consider buyingwedding insurance. Be aware that few compa-nies offer this type of insurance. It is often lim-ited to covering only non-refundable expensesdue to unlikely misfortunes, and will not pay ifthe bride or groom fail to show up because of“cold feet.”

Read the fine print on all policies to besure you’re getting the coverage you expect.Check to see if you may already be insured bythe wedding or reception site’s liability policy— for possible loss — or a homeowner policyowned by whoever is paying the bills.

Think about other valuables you’ll need toprotect such as wedding rings. Contact yourhomeowner or renters’ insurance company wellin advance of your wedding date to ensure cov-erage. Some companies let you change yourpolicy as early as 30 days before the wedding.Marital status may alter your car insurance pre-miums or make you eligible for health insur-ance maternity benefits (see Insurance, pages 27-29).

Getting married

Wedding budgetToday, more couples are older when they

marry or remarry, and often pay for their ownweddings. The cost of a formal wedding canescalate to tens of thousands of dollars. So it iscritical for you to set up and follow a budget toprevent starting your marriage in debt, whilestill having the wedding you both desire.

PreparationAsk friends for recommendations. Shop

around for value and services. Ask for policies,get references and compare prices. Look atportfolios, merchandise, brochures and atmos-phere. Make no assumptions; ask questions.Check that items, services and accommoda-tions are available for the dates, times andplaces you have planned.

Contracts protect both you and the serviceprovider. Read them carefully, and include inwriting any requests you have.

Verify:❚ Dates and times

❚ Details about items, services andaccommodations

❚ Delivery time schedule

❚ Name of person responsible

❚ Last date to make changes

❚ Cancellation policy

❚ Backup service

❚ Payment amounts

❚ Payment schedule

2 L O O K B E F O R E Y O U L E A P


Worksheet—Plan for the cost of . . . (Check box ✓ )

To set up a budget, fill in the amounts you expect to spend on each item.

Plan for: $ Estimated cost:

■■ Announcements, including postage ________________

■■ Marriage license ________________

Ceremony fees:

■■ Person officiating ________________

■■ Musician(s) ________________

■■ Marital property agreement ________________

■■ Insurance — Homeowner or renter ________________

Parties & reception food:

■■ Rehearsal dinner ________________

■■ Groom’s party ________________

■■ Reception ________________

■■ Reception music ________________

■■ Space rental ________________

■■ Equipment rental ________________

■■ Lodging ________________

■■ Travel ________________

■■ Local transportation ________________

■■ Gratuities ________________

Gifts:

■■ Wedding party ________________

■■ Soloist/musician(s) ________________

Rings:

■■ Groom ________________

■■ Bride ________________

Attire:

■■ Groom ________________

■■ Bride ________________

■■ Wedding party, attendants ________________

■■ Flowers ________________

■■ Photography ________________

■■ Videography ________________

■■ Honeymoon ________________

■■ Thank yous, including postage ________________

Total budget: ________________

You may also want to make a list of after-wedding expenses, such as moving, changing apart-ments, leases and security deposits, or selling a house.

Marriage licenseGetting married requires a license. Here’s

what you need to do to get it:❚ Application — Both applicants must

apply in person for a marriage license atthe county clerk’s office (see Residence,below). The application includes thescheduled date of the marriage, name ofeach applicant, whether they are related,and each applicant’s birth date and place,race, current residence and names of par-ents. Also, information will be requiredregarding the most recent marriage of eachapplicant, the place, date and how dis-solved, and the name(s) of formerspouse(s). The application may requiremore information as the WisconsinDepartment of Health and Family Servicesdirects.

Note: Although a blood test is notrequired, if you do not know your HIVstatus, consider anonymous or confidentialtesting (see Resources, page 31).

❚ Identification — Each person must pre-sent to the county clerk documented proofof identification and residence. Applicantsunder 30 must furnish a birth certificate.For those over 30, presenting your birthcertificate will speed the process. For a fee,you can get a certified copy of your birthcertificate from the register of deeds officein the county where you were born.Previously married applicants must presenta copy of the most recent judgment ofdivorce, annulment or death certificate todocument the termination of their mostrecent marriage.

❚ Residence — Wisconsin residents mustapply in the county where one or bothapplicants have resided for at least the last30 days — no matter where in Wisconsinthe marriage takes place. Proof of residencesuch as a driver’s license or Wisconsinidentification card with a current address isrequired. If neither applicant has lived in

Wisconsin for 30 days, both must apply inthe county where the ceremony will beperformed, and must provide proof of out-of-state residence.

❚ Out-of-state/non-resident — If youare getting married in another state, applyin the county where the marriage will takeplace. Marriage of a Wisconsin resident inanother state is null and void if such mar-riage would be prohibited in Wisconsin.Marriage in Wisconsin of non-residentswho are prohibited from marrying in thestate of their residence is also considerednull and void in Wisconsin (see Residence,above, and Out-of-state note, page 1).

❚ Oath — The clerk who is to issue themarriage license will require the applicantsto take an oath that the marriage will belawful and the information given in theapplication is correct.

❚ Objection — A parent, grandparent,child, brother, sister or guardian of eitherapplicant may object and prevent issuanceof a license if the application containswillful misstatements, or either applicant isincompetent to marry. A district attorneyor family court commissioner may alsoobject and prevent issuance of a license.

❚ Fee — The fee for a marriage licensevaries by county. The minimum charge fora license is $50. However, counties cancharge any amount they wish. Most coun-ties require payment in cash, and considerthe fee non-refundable.

❚ Waiting period — In Wisconsin, youmust apply for a marriage license at leastfive days before the license can be issued.Check with your county clerk’s office. Thefive-day waiting period may be waived atthe county clerk’s discretion if the appli-cant pays an added fee of not morethan $10.


❚ Expiration — A marriage license is validfor 30 days from the date issued. The mar-riage ceremony must be performed within30 days, or the license expires.

Note: There may be more provisions, socall your county clerk to set up an appoint-ment. Both applicants must apply together.Make sure the appointment date falls withinthe required period. Ask how much the fee isin your county, and what method of paymentis accepted (most counties require cash). Takeall the necessary documents.

Before you marry is also a good time to con-sult with your insurance agent and the employeebenefits officer where you work (see Insurance,page 27, and Employment benefits, page 18).

Marriage ceremonyYou can be as creative as you want in per-

sonalizing your marriage ceremony. But here iswhat the law requires:❚ An official — Judges of a court of record,

court commissioners, ordained ministers,priests or rabbis may perform marriage cer-emonies. Realize that your chosen officialmay have requirements for the marriageceremony. You may perform your own cer-emony if your spiritual tradition permitsthis. You can ask the county clerk fornames of civil officials available to performthe marriage ceremony.

❚ Two witnesses — Two competent adultwitnesses 18 years or older are required,neither being the person officiating. Theydo not have to be in the wedding party.

❚ Deliver and file a marriage document

— The person officiating is responsible forfiling the marriage document, legibly andcompletely filled out with non-fadingblack ink. In the case of a marriage cere-mony performed without an officiatingperson, either spouse may return the mar-riage document to the register of deeds ofthe county in which the marriage was per-formed within three days after the date ofmarriage.

Changing your name

Deciding whether to

changeMost women have assumed their husband’s

surname — family name — when theymarry, though no law requires them to do so.Rather, in our culture, a strong tradition hasdeveloped in which the husband’s surnamebecomes the surname for the wife and children.

From the mid-1800s through the early1900s, a number of women followed the leadof suffragist Lucy Stone, who retained her birthname when she married Henry Blackwell. The“Lucy Stone League” encouraged women tochoose their married surnames. But traditionalways had a strong hold, and for most of thepast century it has been unusual for a womanto use a surname different from that of her cur-rent husband.

In the late 1960s and early 1970s — whenfeminist ideas again came to the forefront inour culture — a new generation of womenbegan to assert their right to choose their ownnames. Today, couples have many options tocontemplate, all acceptable under Wisconsinlaw. Couples may — and have — done all ofthe following:❚ Wife takes husband’s name

❚ Husband takes wife’s name

❚ Wife hyphenates her name and her hus-band’s name; husband does not change hisname

❚ Both spouses hyphenate their last names

❚ Both spouses use a new name with specialmeaning for them, perhaps combiningtheir two names

❚ Wife uses her birth name as her middlename and takes husband’s last name

❚ Both spouses use the wife’s birth name asmiddle name and husband’s last name

You may think of other choices as well.


Many factors may influence your decisionabout the name(s) you and your spouse willuse. Considerations many people feel impor-tant include:❚ The name by which you are known in the

community and how important it is to youto maintain a consistent identity and repu-tation — the importance of name recogni-tion to you

❚ Your profession and whether you wouldneed to or want to change professionallicenses, diplomas and other credentials toreflect a name change

❚ Your assessment of the amount of bureau-cratic hassle you would endure in changingall of your identification and documents asopposed to explaining to people why yourname is not what they think it is or shouldbe

❚ The importance to you and your spouse ofhaving all members of your new familyknown by the same name

❚ The importance to you and your spouse ofmaintaining and continuing your birthfamily’s surname

❚ Aesthetic considerations, including thelength and ethnicity of each of your sur-names and how you feel about how theysound together

❚ Whether you and your spouse agree aboutyour choices

❚ If you plan to have children, how will you name them:— A hyphenated name?— Dad’s name?— Mom’s name?— First child with one parent’s name and

second child with the other?— A different name completely?Parents can do — and have done — all ofthese.

You may change your name — or changeit back — at any time. A legal name changeprocedure is not required, since common lawpermits any person over the age of l4 to changehis or her name at will as long as the intent isnot to defraud. In other words, notify all yourcreditors. You may be comfortable beingknown socially by one name — probably aspouse’s name — but conducting business inanother.

If you decide to change your name, changeall of your identification and documents at thesame time. Otherwise, you may find yourselfshowing identification to cash a check whenthe name on the check does not match thename on your driver’s license or photo ID.Your checking account, payroll records, SocialSecurity card, passport and driver’s license orWisconsin ID should all be consistent (seeUpdating the records, pages 7-9).

A woman who assumes her husband’s sur-name is legally known by her first name andher husband’s last name. Her legal signature is“Sue Jones,” not “Mrs. John Jones.”Traditionally, the woman’s birth surnamebecomes her middle name. But many womenretain their middle name and simply drop theirbirth surname. This is a matter of personalchoice. Be consistent, always signing yourname the same way.

For legal purposes, it really does not matterwhat name your magazine subscriptions comein, or whether your children’s teachers call theirmother “Mrs. Jones” or “Ms. Smith.”

If you plan to change your name, it is eas-iest to do so when you marry. In this culture,simply showing your marriage license is gener-ally all you need to do to change your identi-fying documents. If you are doing somethingvery non-traditional or if your name change isnot a result of marriage or divorce, you mayhave difficulty getting your new name on yourdocuments without a formal name change pro-cedure. A formal name change requires ahearing and publication of the change as a legalnotice in the newspaper.


If you choose a non-traditional nameoption, be sure to review wills, deeds and otherlegal documents carefully. It usually makessense to clarify the marital relationship in suchdocuments. To avoid confusion, state that youare married and identify your spouse by namein your will. Also, be sure your income tax pre-parer, health and life insurance and other suchservice providers know your marital status.

You cannot change a child’s name simplyby changing the parent’s name.

Children from a prior marriage will retaintheir birth names unless they go through aname change procedure. This generally requiresboth parents’ consent.

Updating the recordsIf you change your name, you will need to

change some of your records, giving your mar-ried status, new name and new address. Be sureto change the following:

Driver’s license or photo ID

If either of you changes your name oraddress, notify the Wisconsin Department ofTransportation within 10 days. As of January 1,1991, everyone in Wisconsin who drives needsa photo driver’s license. People who do notdrive can obtain a Wisconsin identificationcard. To change your name, you must apply inperson at a driver’s license examining stationfor a duplicate license or Wisconsin ID. At thesame time, you can complete a change ofaddress form.

Motor vehicle registration

The Wisconsin Department ofTransportation (DOT) Division of MotorVehicles requests that you notify it of anychange of name and/or address. You mustsubmit your car title to DOT as soon as pos-sible if you are changing your name. Contactthe DOT’s Auto Registration Title andRenewal section, and ask for change of nameform MV2014. After you sign a statement andsend in the title and form, DOT will issue youa new title with your new name and address.

Or you can call to change just your address (seeTransportation, Department of, under stategovernment listings in your phone book).

If each spouse owns a vehicle, either onecan register the car in one or both names — aslong as its title is held the same way. Keep inmind that under Wisconsin marital propertylaw, title does not determine who has owner-ship rights to the vehicle. Title determinesproperty management and control rights.These rights become important if you want tosell or give away an asset such as a car (seeManagement and control of rights, page 13).

Note: Changing title to non-maritalproperty may be construed as making a gift ofthat property (see Gifts of marital property,page 20).

Passport and visa

If you wish to apply for a passport, youwill need a certified copy of your birth certifi-cate and two passport photos. If your marriedname differs from the name on your birth cer-tificate, take your marriage license with you.For a fee, you can get a certified copy of yourbirth certificate from the register of deeds inthe county where you were born.

Check your local government office fordates and times to apply. Ask about fees andmethod of payment. Allow six to eight weeks.For a visa, some countries require a divorce cer-tificate if you have been married before. Take anotarized copy of your divorce judgment orcertificate with you when you travel.

Credit cards

If you own credit card accounts separatelybefore marriage, you may wish to combineaccounts after marriage. Credit card companiesallow two people to share an account numberwith cards showing separate names. Creditcards are easier to identify if you hold them ineach spouse’s name — John Jones and SueJones (or Sue Smith if she kept her birth name)— not Mr. John Jones and Mrs. John Jones.


Regardless of how many cards you have orwhose names appear on them, the records of ajoint credit card account will appear on each ofyour credit reports at the credit bureau (seeCredit and debt, page 16).

Bank accounts and loans

Under the Equal Credit Opportunity Act,all new joint accounts and loans must berecorded in both spouses’ names for credit pur-poses. This allows each spouse to establish acredit rating in his or her own name (see Creditand debt, page 16).

Safe deposit box

Safe deposit boxes in financial institutionsprovide secure storage for valuables and impor-tant papers that would be hard to replace. Youmay lease a box in one person’s name or in thenames of two or more persons as co-lessees.In that case, either one has access to the boxwhile both are living.

At the death of one lessee, a bank officerwill sit down with the personal represen-

tative — executor who carries out the direc-tions in the will — or surviving spouse to helpinventory the box and to remove any originalwill or trust documents for filing with thecourt.

Insurance

Notify your insurance companies well inadvance of your marriage date. Some insurersallow you to change your policy as early as30 days before the wedding. Getting marriedmay reduce your car insurance premiums (seeMotor vehicle insurance, page 29). You may beeligible for health insurance maternity benefitsfrom your health insurance provider.

Make sure you give your new address, mar-ital status and/or name to each of theseinsurers:

❚ Automobile or other vehicle

❚ Dental

❚ Disability or income continuation

❚ Health

❚ Homeowner or renters’ and liability

❚ Life

❚ Property

Note: If you do not name your spouse asbeneficiary on your life insurance, ask yourspouse to sign a written consent to ensurethat the insurance will go to the beneficiaryyou have named (see Life insurance, pages 19and 28-29).

Pension and retirement plans

Notify your employer’s benefits officeregarding changes in your dependents.

You may be required to obtain yourspouse’s consent if you elect pension benefitpayment options that do not provide for pay-ment to a surviving spouse after your death.

IRS and Social Security

If you change your name, notify the SocialSecurity Administration by filing a new SS-5form. You can get a copy at your local SocialSecurity office, or call: (800) 772-1213

You will need to present identificationshowing your old and new names — certifiedcopies or original documents only. In abouttwo weeks, you will receive a new SocialSecurity card with your original number andnew name.

Your tax refund could be delayed if you fileyour return with a name that does not matchthe one on your Social Security card. TheInternal Revenue Service (IRS) freezes refundson returns with names and Social Securitynumbers that do not match, and it may takethree months or more to straighten things out.

You do not need to notify the IRS; they arecross-referenced with Social Security. But tofind out whether a name change is holding upyour refund, you can call the IRS:IRS Hotline

(800) 829-1040(800) 829-4059 (TTY)Weekdays (also Spanish)


Selective Service

Federal law requires men ages 18 to 35 tonotify the Selective Service Board of anychange of address and marital status. If youhave prior service, you can update your recordswhen you normally do so, usually once a year.

Voter registration

To vote in the next election, remember toregister under your new name — if youchanged your name — and address. You mayregister to vote at the polls on election day bypresenting proof of 10 days residence at yourcurrent address. For details on voter registra-tion, call your city, town or village clerk.

Clarifying property ownership

Wisconsin Marital

Property ActEvery couple needs to plan carefully for

property ownership and transfer.Since Wisconsin is a marital property state,

you need to become familiar with ownershiprights to property acquired before and duringmarriage. Generally, marital property lawapplies when both spouses reside in Wisconsin.

The Wisconsin Marital Property Act

defines marriage as “a legal relationshipbetween two equal persons, a husband and awife, who owe to each other mutual responsi-bility and support.” Based on community

property concepts, marital property law seeksto recognize marriage as a legal and economicpartnership in which spouses share income andproperty acquired during marriage.

Under the law, which took effectJanuary 1, 1986, how property is classifieddetermines ownership rights. A couple’s deter-

mination date is the latest to occur of theeffective date of the law, the date they bothestablish domicile in Wisconsin, or the datethey marry.


D E T E R M I N A T I O N D A T E

The determination date is the date on which marital property law begins to

apply to a married couple:

❚ For married Wisconsin residents, it is January 1, 1986 when the Marital Property

Act took effect.

❚ For couples moving into Wisconsin after January 1, 1986, it is the date they both

establish a domicile in the state.

❚ For Wisconsin residents who marry after January 1, 1986, it is the date of their

marriage.

All property is presumed to be marital property, unless another classification can be

proven. Classification is determined by when and with what funds you have

acquired the property.


Husband 's 1/2 Wife 's 1/2

Classification

Titled to

husband

Titled to

wife

Husband 'sindividual

property

Wife 'sindividualproperty

Husband 's1/2

Wife 's 1/2

Marital property

All graphics adapted with permission from Understanding Wisconsin Marital Property Law by Richard J. Langer andLinda Roberson (Professional Education Systems, Inc.: Eau Claire, Wis.), copyright © 1986 by Koritzinsky, Neider,Langer and Roberson, Madison, Wisconsin.

Classification

❚ Classification determines ownership.

❚ Title determines only management and

control rights.

Marital property

Presumption:

❚ All property is marital property.

❚ All marital property is automatically

shared equally.

Marital property is defined as all prop-erty acquired through either spouse’s efforts orincome during the current marriage. Generally,marital property consists of income and fringebenefits associated with either or both spouses’employment during their marriage, as well asincome from investments owned by either orboth of the spouses. During marriage, eachspouse owns an undivided 50 percent interestin marital property — regardless of how it istitled (see Management and control rights,page 13).

Income includes wages, interest, divi-dends, net rents and other earnings from mar-ital and non-marital property. Propertyreceived by gift or inheritance is classified asindividual property. Property brought to themarriage or made individual by a marital prop-erty agreement is also individual property (seeMarital property agreements, page 13).

Note: Marital property classification rulesare not the same as divorce property divisionrules. For example, under marital property law,property you bring to the marriage — such assavings from pre-marriage employment — isclassified as individual property. But at divorce,property you bring into the marriage is subjectto the presumption of equal division,

even though it was not shared during the mar-riage — unless you have an enforceable maritalproperty agreement that states otherwise. Youneed documentation to keep gifts and inheri-tances from being included among the divisibleproperty.


Husband 's1/2

Wife 's 1/2Husband 'sindividual

property

Wife 'sindividualproperty

Marital property

Individual property

Individual property includes:

❚ Property received by gift or inheritance.

❚ Property brought into the marriage.

❚ Property designated as individual through a marital

property agreement.

Mixing marital and

non-marital property

Keep careful records, or property that hasboth marital and non-marital parts maybecome classified as marital. Non-marital

property includes:❚ individual property — property

brought to the marriage, gifts or inheri-tances you receive, or property made indi-vidual through a marital property agree-ment — and

❚ unclassified property — propertyowned before the couple’s determinationdate.

The mixing rule is that if non-maritalproperty is mixed with marital property — andthe non-marital part cannot be segregated andtraced back to its original source — then theentire asset is classified as marital property.

To trace property ownership, keep bankstatements, canceled checks, title transfer docu-ments and proofs of purchase. See Mixing Rulediagram, below.

During marriage, income from non-mar-ital property — interest, dividends, net rents— is classified as marital property. This meansthat if you bring a sum of money into a mar-riage — even if you put that money into abank account with just your name on theaccount — the interest earned on that bankaccount after your marriage is marital property.

The account then contains marital prop-erty — interest — and non-marital property— principal. You may unilaterally —without your spouse’s permission — reclassify the interest on your account asyour own individual property. You do this bysigning a written statement, having it notarizedand giving a copy to your spouse within fivedays. Retain the original with a note indicatingwhen and where you gave a copy to yourspouse. This applies only to income earnedfrom your individual property after you havedelivered this statement — unless your maritalproperty agreement had reclassified thisincome (see Marital property agreements,page 13).

A unilateral statement could read:

“All my income generated by___________________ (name of asset),which is my individual or non-marital propertybecause ______________ (explanation: forexample, it was a gift, inheritance or moneybrought into the marriage) on or after____________ (today’s date) is classified asindividual property.”


Mixing Rule

❚ You must act to keep property individually

owned, or it will gravitate to marital property.

❚ Mixing marital and individual property

produces marital property, unless the

individual property can be traced.

Wife 'sindividual

property

Husband 's1/2

Wife 's 1/2

Marital property

Husband 'sindividual

property

This statement is best used for assets suchas stocks and bank accounts brought into themarriage. A major drawback to using the uni-lateral statement is that it is effective during themarriage but not at divorce.

Effects of title

Management and control rights

Property may be titled in either one orboth spouses’ names. But title — legal papersuch as a deed or mortgage that shows evidenceof ownership — does not mean ownership. Inmost cases, title merely determines manage-ment and control rights (see Management andcontrol of marital property rights, page 20).

Survivorship marital property

If the property is owned as survivorship

marital property, upon the death of onespouse the property automatically passes to thesurviving spouse without probate — the legalprocedure to settle an estate. The survivingspouse then owns the entire asset. Survivorshipmarital property cannot be controlled by a will,and is not subject to creditors’ claims. As withother marital property, this classificationreceives a full-basis adjustment under thelaw — both halves are adjusted to currentmarket value.

A homestead acquired after marriage ispresumed to be survivorship marital propertyif:❚ The deed or transfer document shows that

the property is held by both spouses andby no one else; and

❚ The couple has not indicated on the deedor in a marital property agreement thatthey do not wish to hold the property witha right of survivorship.

Wisconsin Statutes define a homestead asthe dwelling and land surrounding it — 1⁄4 to40 acres — as is “reasonably necessary” for useof the dwelling as a home. Both spouses mayjointly reclassify a homestead by gift, con-

veyance — title or deed transferring prop-erty, not will, lease or law — or marital prop-erty agreement. Neither spouse can sell italone.

Marital property

agreementsUnder Wisconsin law, spouses or people

intending to marry may enter into agreementsabout how they will own, manage and disposeof property.

The Wisconsin Marital Property Act:

❚ Encourages marital property agree-ments;

❚ Expands their scope; and

❚ Enhances their enforceability.

Since Wisconsin’s marital property systemmay not suit all couples’ needs, the law givesyou the option to make a marital propertyagreement either before or during your mar-riage. The law permits couples wide latitude instructuring individual economic arrangements.


Marital

Property

Agreement

Marital property agreements

Most effects of the marital property law may

be varied by marital property agreement.

Marital property agreements offer couplesthe flexibility of individually tailoring a finan-cial contract to meet specific needs. Maritalproperty agreements are particularly suitable inthese and other situations:❚ The couple enters marriage with

significantly differing wealth, debt orresponsibilities.

❚ One spouse — or both — has been mar-ried before and wishes to enter into agree-ments to clarify obligations to childrenfrom prior marriages, responsibility fordebt already acquired, or the right to con-tinue to own previously acquired assets.

❚ One spouse — or both — owns a largeasset portfolio acquired through gift,inheritance or personal savings, and wishesto protect these assets.

❚ One spouse is engaged in a speculative orrisky business venture and wants to protectthe other spouse from the ramifications ofbusiness failure.

A marital property agreement must meetcertain legal requirements. To be enforceable,a marital property agreement must be:❚ Entered into voluntarily by both spouses;

❚ Reduced to writing and signed by bothspouses; and

❚ Preceded by full financial disclosure byboth spouses of all of their incomes, assets,liabilities and other obligations.

Couples may not contract regarding cer-tain prohibited matters the law considers con-trary to public policy. You CANNOT:❚ Adversely affect a minor child’s right to

support, or alter any court-imposed childsupport obligation without the court’sapproval.

❚ Enter into a contract that results in aspouse having less than “necessary and ade-quate” support.

❚ Eliminate spouses’ obligation to act ingood faith in managing and controllingmarital property.

❚ Contract with your spouse to diminish therights of creditors or bona fide — goodfaith — purchasers of marital property.

In negotiating a marital property agree-ment, couples consider issues such as the following:❚ How do you give appropriate economic

weight to the economic and non-economiccontributions each spouse makes to themarriage and the family?

❚ How do you deal equitably with the finan-cial needs or expectations of children fromprior relationships as well as any childrenwho may be born in the current marriage?

❚ How do you provide fairly for aged parentsor other family members who may dependon one or both spouses for financial orpersonal assistance?

❚ How do you allot scarce resources to pro-vide adequately for a surviving spouse aswell as to leave an inheritance for children?

❚ How do you treat property — for example,a residence — owned by one spouse butused by the whole family?

❚ Day-to-day:

■ Who will have responsibility orauthority for managing specific assets?

■ Who can incur debt?

■ What continuing information is eachspouse entitled to know about theother’s property?

■ What limits do you set on gifts aspouse may make unilaterally?

■ Who is responsible for paying ongoingexpenses?

❚ Acknowledging that marriage duration isuncertain, the agreement needs to be fairto both spouses whether the marriage lastsfor months or decades.


A marital property agreement alone willprobably not resolve all of these issues. Youmay need a will, trust, powers of attorney andother legal documents to carry out your com-plete plan for dealing with these matters.

The marital property agreement is thelinchpin of your estate plan, because it tells youwhat property you own and what you can andcannot do with it. You need to clarify propertyownership before you can dispose of the property.

For couples who choose not to draft theirown documents, Wisconsin Statutes contain twodifferent marital property agreements thatspouses can sign without modifying.

These statutory marital property

agreements are:❚ The statutory Terminable Marital

Property Agreement, which permitsspouses to classify all property as maritalproperty; and

❚ The statutory Terminable Individual

Property Agreement, which permitsspouses to classify property as individualproperty.

Either of these agreements can be signedwithout financial disclosure. But in thatevent, the agreement automatically terminatesin three years and cannot be renewed. Eitherspouse may unilaterally terminate either ofthe statutory agreements at any time. Theseagreements have no impact at divorce. Becausethey do not apply at divorce and can be termi-nated by one spouse acting alone, these agree-ments do not supply the certainty that mostcouples want when they enter into a maritalproperty agreement. Therefore, couples rarelyuse them.

As detailed above, marital property agree-ments are enforceable during marriage ifthey are substantially fair and have been fairlyprocured. A marital property agreement is acontract. While the law does not require thatyou hire an attorney to help you negotiate andprepare an agreement, doing so maximizes yourchances of crafting an enforceable agreement.

Note: Marital property agreements con-cerning property rights are enforceable at

divorce if they are “equitable.” A divorcecourt will consider agreements about spousalsupport, but such agreements are not bindingon the court.

A court determines whether an agreementis equitable by looking not only at its provi-sions, but also at the circumstances underwhich the agreement was signed. An agreementis more likely to be enforced if each spouse hadfull information about the other’s financialaffairs and had a “meaningful choice” aboutwhether or not to sign the agreement.

To determine whether each spouse had ameaningful choice, courts look at factorssuch as whether each person had counsel, howlong each person had to review the agreement,and the terms of the agreement.

Circumstances could change greatlybetween the time the agreement is made andthe time its enforcement is sought in divorcecourt. If the couple did not or could not rea-sonably contemplate those changes when theysigned the agreement, the courts may find theagreement would be inequitable and maydecline to enforce the agreement. To enhancethe agreement’s enforceability, an attorney canhelp ensure that you consider all reasonablyforeseeable possibilities.


Credit and debtCredit depends solely on your financial

abilities and payment record. These factorsestablish a credit history necessary to acquirecredit. Establishing your own credit historymay help you acquire credit following death ofa spouse, separation or divorce.

Under the federal Equal Credit

Opportunity Act, all new joint accounts andloans must be recorded in both spouses’ namesfor credit purposes. Each of you can get creditin your name without the other’s signature —if you are credit worthy. In fact, maritalproperty law provides that a non-wage-earningspouse may obtain credit based on the otherspouse’s income and assets.

Under marital property law, one spousemay borrow money without the other partici-pating in the credit transaction. But the cred-itor must notify the other spouse in writing —so the non-applicant spouse knows this is amarital property debt. If debts are incurred fora family purpose — in the interest of themarriage — all your marital property will beavailable for repayment even though bothspouses did not sign for the loan.

Under marital property law, just as spousesshare interests in the property they acquiretogether, they also have shared responsibilityfor many debts. Debts are not classified as“individual” or “marital,” however. Instead,they are assigned to one of five categories:

❚ Support obligations

❚ Family purpose obligations

❚ Pre-marriage or pre-Marital PropertyAct obligations

❚ Tort obligations

❚ Other obligations


100 Percent Rule — Credit

Each spouse has access to 100 percent of

the marital property other than business property

for the purpose of obtaining unsecured credit.

100 Percent Rule — Debt

If a debt is incurred in the interest of the

marriage, the creditor has access to 100 per-

cent of the marital property for satisfying the

debt. The creditor must notify the other

spouse in writing — so the non-applicant

spouse knows this is a marital property debt.100% of

marital property

100% of

marital property

Husband 's1/2

Wife 's 1/2

Marital property

Debt

The category determines what property isavailable to creditors to satisfy the debt.

Support obligations to a spouse or achild of the marriage may be satisfied from:

❚ all non-marital property of the incur-ring spouse, and

❚ all marital property — even if held inthe non-incurring spouse’s name.

This same pool of property is available forsatisfying all family purpose obligations

— obligations either spouse incurs for the ben-efit of the marriage or the family. All debtsspouses incur are presumed to be family pur-pose obligations.

Pre-marriage or pre-Marital

Property Act obligations — obligationseither spouse incurred prior to their determina-tion date — may be satisfied from:

❚ the incurring spouse’s non-maritalproperty, and

❚ all property that would have been theincurring spouse’s property absent themarriage, enactment of the maritalproperty law, or move to Wisconsin.

Tort obligations — liabilities arising as aresult of a civil wrong a spouse committed,such as a judgment in favor of a person injuredin a car accident a spouse caused — may besatisfied only from:

❚ the responsible spouse’s non-maritalproperty, and

❚ his or her half of the marital property.

Any other obligations may be satisfiedonly from:

❚ the incurring spouse’s non-maritalproperty and, when that property isexhausted,

❚ that spouse’s interest in marital property.

For example, John incurred debts andobligations before his marriage. Once he ismarried, creditors cannot pursue the income ofthe non-obligated spouse, Sue. Creditors maypursue John’s income, without regard to Sue’smarital property interest in this income.

If John borrowed money to buy a new car,this would be an example of a family purposedebt. The law presumes that this car will beused for the benefit of the family. Therefore, allmarital property is available for satisfaction

— the lender has the right to garnish Sue’swages to satisfy the debt. This is true even ifSue did not know about the loan, or if she dis-approved of the loan and the purchase.


Family purpose

Any debt a spouse incurs is presumed

to be in the interest of the marriage.

Debt

When evaluating each spouse’s premaritaldebt, be sure to consider responsibility to paychild support.

If one spouse uses a credit card for busi-ness, keep that account in only the user’s orbusiness name for expense account and taxpurposes. Use other credit card accounts forpersonal charges.

Because the law presumes spouses share lia-bility for most debt, your credit rating is tied tothat of your spouse much more closely than itwould be in a separate property state. If youplan to marry someone with a poor creditrating, you can expect that your own creditrating will be negatively affected. This is some-thing to talk about and plan for prior to mar-riage.

A marital property agreement may helpyou protect your credit rating (see Managementand control rights, page 13). But your maritalproperty agreement may limit creditors’ rightsONLY IF creditors have actual knowledge

of the agreement. Provide your creditors with acopy of your agreement if you expect the agree-ment to govern future debt transactions.

For information on how to gain access toyour credit report, ask your countyUW-Extension office for Your Credit ReportNCR606-3, also available in English orSpanish from the address on the back of thisbooklet.

Employment benefits

Pension and retirement plans

Before marrying, check with the benefitsofficer where you work about your retirementprogram. Ask whether your new spouse willreceive benefits at your death. If your marriagerequires you to relocate and change places ofemployment, does your pension plan requireyou to work a certain length of time before youhave the right to take your pension fund withyou?

Be sure your employer knows whom youwant as beneficiary of your pension or annuityplan. Wisconsin marital property law classifiesretirement benefits earned during marriage asmarital property. Also, federal law governingmany private employers’ pension plans —ERISA, Employee Retirement Income

Security Act — restricts how an employeedisposes of pension and death benefits. So thebeneficiary named in the plan may not be ableto collect all the proceeds. Check options care-fully before changing any part of your retire-ment program. A previous marriage may affectbenefits.

Federal law — ERISA or REA,

Retirement Equity Act — provides rightsthat supersede state property law for deferredemployment benefit plans covered by theselaws. So language in a marital property agree-ment may not be sufficient to protect pensionbenefits, and other documentation may be necessary.

Special marital property classification rulesapply to deferred employment benefit plans. Apension plan is entirely marital property if itbegins as a result of employment on or afterthe latest of these dates:

❚ Marriage date

❚ Date the marital property law tookeffect (January 1986)

❚ Date the couple established Wisconsinresidence

An employee pension plan that beganbefore that determination date and continuesafter is prorated into a marital property partand a non-marital property part according tospecial classification rules.

For example, if Sue worked for 10 yearsbefore the marriage, married in 1987, worked10 years after the marriage and then retired,one-half of her retirement plan would be indi-vidual and one-half would be marital. Johnwould have a one-half interest in one-half ofthe plan — one-fourth of the benefits.


Note: Retirement benefits are subject tothe terminable interest rule — a non-employee spouse’s marital property share of adeferred employment benefit terminates if sheor he dies before the employed spouse. In thecase above, this means that if John dies beforeSue, he cannot will away the one-fourth mar-ital property interest he would have had inSue’s deferred employment benefit plans. Thisensures that Sue receives income from thosepensions or annuities when she retires.

Life insurance

Life insurance is important for young par-ents and second marriages. A life insurancepolicy that insures a married person and isissued after your determination date is classi-fied as marital property.

It does not matter whether premiums arepaid with marital or individual property.

A policy issued before your determinationdate becomes a mixed asset if a spouse or aspouse’s employer pays even one premiumafterward with marital property (see Mixingmarital and non-marital property, page 12).When the insured spouse dies, proceeds from amixed asset policy are prorated between themarital property part and other parts based ona statutory formula.

For example, if Sue took out a life insur-ance policy 10 years before moving toWisconsin, paid annual premiums, then paidthe first premium due after the move with mar-ital property and died 10 years thereafter, one-half of the policy’s value would be maritalproperty. If she died 20 years thereafter, two-thirds of the policy’s value would be maritalproperty. In either case, John would have aright to one-half of the insurance proceeds’marital property portion. And Sue could havedesignated a beneficiary only for her half of themarital property and for the non-marital prop-erty component.

Regardless of whom the insured spousenames as beneficiary, a surviving spouse has aright to one-half of any marital interest in a lifeinsurance policy.


Life insurance

❚ Life insurance proceeds may be

classified as marital property.

❚ If so, the beneficiary named in the

insurance policy may not collect all of

the proceeds.

Husband 's1/2

Wife 's 1/2

Marital property

Life

Insurance

Named beneficiaries

Marital property interest

$

$Premiums

For instance, if John names his child froma previous marriage as the beneficiary of a lifeinsurance policy and then dies, and part or allof the policy is classified as marital property,Sue can bring a claim to recover her portion ofthe marital property proceeds. This rule appliesUNLESS John is subject to a court orderrequiring him to name the child as beneficiary.

If spouses do not want this result, the non-insured spouse may give written consent foranother person — such as a parent or child ofeither spouse — to be named as the benefi-

ciary of the life insurance proceeds. Consentcan be revoked UNLESS the original consentspecifically says it cannot.

Note: Many different kinds of writtenconsent forms are available, and signing awritten consent has tax as well as property lawconsequences. So get expert advice before yousign a written beneficiary consent form.

If you have been divorced or have childsupport obligations from a prior relationship,check carefully to make sure you understandyour legal responsibilities set forth in yourcourt order. Be sure to discuss these obligationswith your new spouse to avoid misunderstand-ings and complications later.

Management and

control of marital

propertyTitle does not determine who has owner-

ship rights to marital property. But a documentof title does determine who manages and con-trols marital property.

For example, if property is titled to onespouse alone, that spouse solely manages theasset even though it is marital property. Oneimportant exception to this rule is that eitherspouse may manage all marital property —except certain business interests — to obtainunsecured credit or credit when the item pur-chased is the security for the loan.

If the document of title specifies owner-ship by the wife and husband joined by theword “and,” then both spouses manage theproperty and both signatures are required forproperty transactions.

If the document of title contains the namesof wife and husband joined by “or,” theneither spouse acting alone may manage themarital property. However, if a spouse hasdepleted a joint bank account, that spouse —or his or her half of the estate — may have toaccount for the missing funds at divorce ordeath.

Note: An exception applies to homesteadproperty, which is presumed to be survivorshipmarital property unless the deed or a maritalproperty agreement clearly indicate otherwise.Consent of both spouses is required to sell orencumber homestead property (seeSurvivorship marital property, page 13).

Contact your county or city records officeto find out how to change name(s) on propertyyou own.

If there is no document of title, eitherspouse may manage the property.

Gifts of

marital propertyA spouse with management and control

rights may make a unilateral gift or giftsfrom marital property to a third party of notmore than $1,000 per calendar year per recip-ient, without the consent of the other spouse.A gift can be a larger amount if it is reasonableconsidering the spouse’s economic position.This rule applies to gifts to all third parties,including children, either spouse’s parents, orcharities.

For example, Sue makes a $1,500 gift ofmarital property to her child by a previous mar-riage. If John did not consent, he may bringan action to recover the property — or torecover its value to the extent that it exceeds thepermissible gift. He may bring the actionagainst Sue, the gift’s receiver, or both. He must


take action within one year after the date of

discovery — when he learns, or should withreasonable care and diligence — that she madethe gift.

To avoid this result, the non-gifting spousemust agree to the gift, preferably in writing,either when the gift is given or later. On theother hand, a spouse can defeat a claim forrecovery of a gift if she or he can show that it isreasonable in light of the spouse’s economicposition.

Spouses may give gifts of any size to each

other without limit. Keep in mind that giftsduring life or transfers at death betweenspouses are free from gift and estate taxes.

Wills and trustsAny person 18 years of age or older and

mentally competent may make a will inWisconsin. A will is a written document thatspecifies how you wish to have probate prop-erty distributed at your death, and designatessomeone to follow through on your wishes. Agift of property made in a will is called abequest.

Why should each newlywed have a will?The most basic reason is that it lets each of youdetermine how your property will be distrib-uted at your death.

Keep in mind that Wisconsin marital prop-erty law provides that one spouse is entitled to50 percent of the marital property even if thatspouse does not hold title to the property.

Young families can use a will to nominate aguardian for minor children and someone tomanage the estate they leave those children.You can also establish a trust in your will forthe benefit of children (see testamentary

trusts, page 23).


Will

❚ By will, each spouse may dispose of one-

half of the marital property, and all of his or

her individual property.

❚ The surviving spouse has no claim on this

property.

Husband 's1/2

Wife 's 1/2

Marital property

Wife's individual property

WILL

Husband's individual property

Named beneficiaries

If you have adult children from a priorrelationship, you may find they regard yournew spouse as a threat to their inheritance.Many couples faced with this situation chooseto sign a marital property agreement thatdefines what the new spouse is entitled to, andwhat is being protected for the children.

This can help improve relations betweenstepchildren and stepparents.

If you have a marital property agreement,be sure that your will or trust is consistent withthat agreement. If your marital property agree-ment and will or trust contradict each other,your beneficiaries may face years of court bat-tles trying to determine your intent.

Keep in mind that your will covers onlyproperty subject to probate. Your probate

estate is the real and personal property youown alone, as a tenant-in-common, or as mar-ital property when you die. You may will towhomever you wish the following classes ofproperty (probate assets only):❚ One-half of each item of marital property,

regardless of the name on the title

❚ Unclassified property

❚ All your individual property

If you and your spouse leave the bulk ofyour estates to each other, include a death in

common accident clause in your wills.This indicates how property should be dividedin case you both die at once or within a shorttime of each other.

When a married person dies without a

legally effective will, under the Wisconsinlaws of intestate succession all that person’sprobate property will pass to the survivingspouse — if there are no children, or only chil-dren or grandchildren of this marriage. If youleave behind minor children, a court will deter-mine who will be the guardian of those chil-dren and administer the estate.

If the deceased spouse with no will is sur-vived by children from a previous marriage,then the deceased person’s marital propertyinterest — 50 percent — and one-half of his or

her individual property will be divided equallyamong all the deceased person’s children. Thesurviving spouse retains his or her half of themarital property, and receives half of thedeceased spouse’s individual property.

Without a will, the deceased spouse’s non-

probate property will be distributed underthe laws governing transfer on death

(TOD) or pay on death (POD) beneficiarydesignations, multiple party accounts, lifeinsurance, and pension death benefit benefi-ciary designations, joint tenancy or survivor-ship marital property.

How do you make a will? Because a will isso important, it is wise to have a lawyer assistyou. But in 1984, the Wisconsin Legislaturecreated two statutory will forms:❚ Basic Will

❚ Basic Will with Trust

These do-it-yourself wills provide a rela-tively simple, inexpensive means for individualsto dispose of some kinds of property. You canget these statutory forms at most stationeryand office supply stores for about $5. But theyare not for everyone.

The statutory Basic Will form is designedfor intact families with relatively simple estates.Because the language assumes the survivingspouse is also the parent of any surviving chil-dren, the form is not well-suited for those whohave children from a prior relationship. Also,the Basic Will provides for naming one personas guardian of children and the children’sestate. Basic Wills are not adequate for businessowners or people with assets that approach theupper limits of federal estate tax exemptions.

For some people, estate planning isimportant because it can help reduce or eveneliminate death taxes. For estates over$675,000 in value, tax planning is especiallyimportant (as of 2000).* The taxable estate

includes all assets the deceased spouse owned,including life insurance, retirement, death ben-efits, interests in joint tenancy and maritalproperty, and trust assets.


*This amount is due to increase in stages to $1 million bythe year 2006.

People marrying for the second or subse-quent time may have larger estates than youngcouples just starting out. They are also likely tohave more competing obligations — childrenfrom prior relationships, elderly parents whoneed assistance, or business partners — thatmake their estate planning more complex. Anattorney experienced in estate planning canoffer a number of useful options to ensure thatthe special challenges for remarrying couplesare met in a fair and practical way.

The laws governing wills vary by state. Ifyou plan to move to another state, be sure youunderstand the interpretation of your willunder the laws in that state.

A trust can serve the same purpose as awill. A trust is a form of ownership in whichthe property title is held by a trustee who hasthe duty to administer the trust for the benefitof the people named as beneficiaries of thetrust. There are two basic kinds of trusts:❚ Living trusts

❚ Testamentary trusts

A living trust is an arrangement totransfer property to a trustee to manage anddistribute the income as you direct for yourbenefit or the benefit of your designated bene-ficiaries. This agreement protects assets forminors or inexperienced beneficiaries, providesflexibility and ensures privacy.

There are two kinds of living trusts:❚ Irrevocable trusts — which cannot be

changed or terminated, though they can beworded to change the trustee — can savedeath and income taxes, protect assets foryour heir(s), and possibly qualify yousooner for Medical Assistance — theWisconsin form of Medicaid, for peopleof any age who cannot afford health care.

❚ Revocable trusts — which can be mod-ified or terminated at a later date —reserve the chance for you to change yourmind or adapt to new developments asthey occur. Revocable trusts may save pro-bate costs — especially on real estate inother states — but they will not save taxes.

Co-trustees can manage co-owned propertyif they share the same goals.

When you create a living trust, defineincapacity — when you want the trustee totake over. If you have a living trust, you stillshould have a will to ensure that any assets youfailed to add to the trust are distributedaccording to your wishes. A trust only coversproperty titled into the trust. It is possible, butnot practical, to place all your property in atrust. You can name the trust as the beneficiaryof your will to avoid probate.

A testamentary trust is a trust youcreate in your will. It is court supervised andpublic record. Testamentary trusts preserve andmanage assets for minors or others to whomyou do not wish to make outright bequests oflarge sums of money. Generally, these trustscontinue for a period of years and ultimatelyterminate with disposition of all remainingassets to the named beneficiary.

Sometimes testamentary trusts are used togive a life interest in certain property to a sur-viving spouse. At that spouse’s death, the assetsthen go to designated beneficiaries.

Most consultants advise against using pre-pared forms for these complex documents. Ifyou do use a prepared form for a will or trust,be sure it is for a marital (community) propertystate. Heavily promoted commercial trust“kits” are often not appropriate for Wisconsin,and may cost more than advertised.

Wills and trusts also require time andattention to detail, so it is a good idea to seekprofessional help to plan and set them up.Review and update your estate plan as yourfamily and economic situations change.

For more information on wills and trusts,ask your county UW-Extension office forFamily Estate Planning in Wisconsin B1442,also available from the address on the back ofthis booklet.


Organizing yourfamily records

Record-keeping is important for most fam-ilies. Some records need to be retained only fora short time, while others should be kept indef-initely. Store your records in a safe, fireproofplace such as a safe-deposit box or fireproofvault, and have a list readily available at home(see Where to keep records and papers, page 30).

Household inventoryKeep a record of household furniture, fur-

nishings and equipment, purchase date and cost,title and ownership. This serves as a basis for:❚ Determining amount of insurance protec-

tion needed;

❚ Filing claims in case of loss by fire, theft orstorm;

❚ Making replacement or purchase plans; and

❚ Tracing ownership classification — whichindicates whether the property is indi-vidual, marital or mixed (see Mixing mar-ital and non-marital property, page 12).

After making this list, keep it in a safe, fire-proof place, and bring it up to date once ortwice a year. Also consider taking photographsof items, or videotaping your home furnish-ings. Many video production companies offerthis service, or camera or video shops may rentcamcorders for your use. Update photo orvideo records frequently, and keep a copy in asafe deposit box.

If you want to classify your property asother than marital property, you need specificrecords. Begin keeping track to establish own-ership as of the date of your marriage. Include:❚ Date of acquisition

❚ Title

❚ Value

❚ Source of funds — individual or unclassified

❚ Documents that trace assets through salesand new purchases

The marital property law tracing rule

helps classify ownership of property when it ismixed, exchanged or sold, and the proceeds areused to buy other property. Newly purchasedproperty will keep the same classification as theoriginal property — if it can be traced.

Marital property agreements can also beused to classify property ownership. They areoften more convenient and certain than relyingon tracing ownership through existing docu-ments, and can reduce your need for record-keeping.

Ask your county UW-Extension office forThe Household Inventory B2389, also availablefrom the address on the back of this booklet.

Advance directivesSpouses may wish to discuss whom each

wants to make decisions if he or she becomesunable to do so. Wisconsin law has establishedthe following ways you can do this withadvance directives for health care, life anddeath, and financial decisions, each with statu-tory forms.

Power of Attorney

for Health Care

Living Will (Declaration

to Physicians)

Wisconsin has no next-of-kin law desig-nating a family member to act in your behalf ifyou are incapacitated. A court-appointedguardian who makes health care decisions foryou must act only in your “best interests” asdefined by the court. That may not be what youwould have wanted. Further, guardianship pro-ceedings are time-consuming and expensive.

Under a 1990 Wisconsin law, you maydesignate someone to make health care deci-sions when you are unable to do so. You cangive power of attorney for health care toanother person, known legally as your health

care agent. You can fill out these statutoryforms without an attorney.


Discuss your wishes in detail with theperson you choose. Appoint as your health careagent:❚ Someone you trust, such as a friend or

family member;

❚ An assertive, intelligent person who willcarry out your wishes;

❚ Someone who lives in the same geographicarea.

If you use the statutory Power of Attorneyfor Health Care form, you must make threedecisions. Answer yes or no for these threecheckoffs on the form:❚ Right to withhold or withdraw feeding

tubes

❚ Admission to nursing home or Com-munity Based Residential Facility for otherthan recuperative or respite care

❚ Decision-making power during pregnancy

A “yes” check means that you wish youragent to have the power to make this type ofdecision for you. The health care agent canonly act after two physicians, or a physicianand a psychologist, rule you incapacitated

— unable to receive and evaluate informationeffectively, or to communicate or managehealth care decisions. You cannot be ruled inca-pacitated merely because you are old.

A living will is different from a power ofattorney for health care. A living will —called “Declaration to Physicians” inWisconsin — is a statement of your desiresregarding the quality and extent of medicalcare you wish to receive if you are either termi-nally ill or in a persistent vegetative state.

You are terminally ill if your death isimminent and life-sustaining procedures wouldonly postpone the moment of death. You are ina persistent vegetative state if there hasbeen a permanent and irreversible cessation ofall cognitive (thinking) brain function. Undereither circumstance, you can request inadvance that life-sustaining procedures andfeeding tubes be discontinued.

The living will is different from a power ofattorney for health care. The living will statesyour desires regarding the quality of medicalcare you wish to receive. The power of attorneyfor health care appoints another person tocarry out these wishes if you are incapacitated.However, the power of attorney for health careis broader — it applies to more than just lifeand death decision-making.

The two statutory forms are connected byrequiring your agent in the power of attorneyfor health care form to carry out your wishesexpressed in the living will. To obtain bothstatutory forms — Power of Attorney forHealth Care and Declaration to Physicians —send separate stamped, self-addressed, business-size envelopes (no. 10) requesting each to:Division of Health, DHFSP.O. Box 309, Madison, WI 53701-0309

For copies of both statutory forms and adecision guide, ask your county UW-Extensionoffice for Advance Directives for Health Care:Wisconsin Living Will and Power of Attorney forHealth Care B3604, also available from theaddress on the back of this booklet.

Power of Attorney for

Finances and Property

You also need another kind of power ofattorney — a power of attorney for

finances. If you become incapacitated and areunable to handle financial matters yourself, it isimportant to designate someone who can acton your behalf to pay bills, collect and manageyour income, file tax returns and take care ofyour financial affairs generally.

There is a great deal of variety in the com-plexity and completeness of this kind of powerof attorney. An incorrectly drafted power ofattorney for finances may prevent your desig-nated agent from carrying out certain actionson your behalf — or, conversely, may give youragent too much power. To protect your inter-ests, consult an attorney who specializes inestate planning before signing a power ofattorney for finances.


Give careful thought to choosing theperson who will act on your behalf. Choosesomeone who is trustworthy and knowledge-able about financial affairs.

Most married people choose their spouseto act as their agent, but this is certainly notrequired. Also designate a successor, in caseyour first choice is not able to assist you whenyou need his or her services.

A statutory form is also available to designatepower of attorney for finances. Send a stamped,self-addressed, business-size envelope to:

Power of Attorney for Finances andProperty

Division of Health, DHFSP.O. Box 309, Madison, WI 53701-0309http://www.dhfs.state.wi.us/legalforms/pdfiles/powerofatty.pdf

Financial records

Checking and savings

accounts

Before passage of the Wisconsin MaritalProperty Act, some couples kept accounts ineach spouse’s name to make it easier to getcredit in each person’s name. Under maritalproperty law, a married person’s credit rating isbased on marital property, plus that person’snon-marital property. So it is no longer impor-tant for you to have your own account forcredit rating purposes, though you still maywish to have separate accounts for managementand control purposes (see Credit and debt,page 16).

If you wish to maintain your own accountand have it classified as your individual prop-erty, be sure no marital property funds aredeposited into that account. Each spouse’swages are family income and thus consideredmarital property even though only one of youearns them. If any marital funds are depositedinto an individually owned account, mixingtakes place (see Mixing Rule, page 12).

The entire account can be reclassified asmarital property unless the individually owned

portion can be traced. Also, be careful not toaccumulate interest in your account, since theinterest will be marital property — unless uponmarriage you execute a unilateral statementdeclaring the proceeds are your individualproperty.

A unilateral statement can be an informalletter. But the law does require that it beacknowledged by a notary and given to yourspouse within five days (see sample unilateral

statement, page 12.)If you wish to open joint checking and

savings accounts, be aware of other types ofaccounts. The way you sign the signature

card at the financial institution determineswhether you have a single or joint checking orsavings account, or give someone the power ofattorney to act on your behalf. Thus, the signa-ture card determines who can manage and con-trol the account. If the checking account cardhas the word “joint” on it, and John and Sueboth sign the card, then either may writechecks. There are two-party accounts for whichboth must sign checks, but this type of accountis generally not used by husband and wife.

If you wish to have an automatic right

of survivorship for your funds when the firstspouse dies, use the joint bank account. Since1982 when interspousal transfers became taxfree, most institutions transfer the account tothe surviving spouse and will allow spouses towithdraw all the funds from a joint account atthe first spouse’s death.

While both spouses are alive, joint and mar-ital accounts are alike in that either spouse maywithdraw funds, up to the entire amount ondeposit. At death, however, the marital accountwill be distributed according to the will or lawsof intestacy — unless you have designated apay on death (POD) or transfer on death

(TOD) beneficiary.

Safe deposit box

Safe deposit boxes in financial institutionsare for keeping important papers and othervaluables. You may lease the boxes from afinancial institution in one person’s name, or in


the names of two or more persons as co-lessees— either one has access to the box while bothare living.

The property in the safe deposit box issubject to Wisconsin marital property law, andthus may be classified as marital property.However, access to the safe deposit box is lim-ited to the name or names on the safe depositbox lease. At death, the box may be sealedwhen the bank receives the death certificate ofthe deceased owner. Upon the request of inter-ested parties, the bank may open the box for awill search and inventory. Check with thefinancial institution regarding their policies.

U.S. Savings Bonds and

investments

If you have been buying U.S. SavingsBonds, you may want to have these payable toyour spouse. There are three forms of registra-tion: in one name, in one name payable ondeath to one other designated individual, andin the names of two individuals as co-owners.If a savings bond is registered in one person’sname and that person dies, it becomes a part ofthe estate.

Under marital property law, a spouse canclaim marital property ownership interest inthe bond if it can be shown that the spouseused marital income to purchase it. When abond is registered as John’s or Sue’s, either maycash it. If John dies, Sue is the absolute ownerand can receive the proceeds upon presentingthe bond for payment.

Wills and trusts

Keep signed original documents in a safeplace, and let family members know where thatis. People often choose a safe deposit box. Asyou revise or create new documents, dispose ofthe old versions to avoid confusion.

An attorney cannot keep a signed willwithout the client’s direction.

InsuranceThe following information is not intended

to promote buying insurance. This is a per-sonal decision. This information is intendedonly to help you make such decisions. You maynot be able to afford all the insurance you feelyou need. So find out what insurance is avail-able to you, and how much it costs.

Then, this overview may help you set yourpriorities.

Disability or income continua-

tion insurance

Statistically, it is more likely that you willbe incapacitated for an extended period duringyour lifetime than that you will die suddenly.So it is important to plan ahead for the risk ofdisability, just as a good estate plan includesplanning for unexpected death.

An important part of planning for dis-ability involves providing for income continua-tion to support you and your dependents ifyou are unable to work for an extended period.Insurance designed to cover this need is called“disability insurance” or “income contin-

uation insurance.”It is also important to designate decision-

makers to handle financial matters and healthcare planning for you if you are unable to makethese decisions yourself. You can do so by com-pleting advance directives forms (see Power ofAttorney for Health Care and Living Will(Declaration to Physicians), page 24; and Powerof Attorney for Finances and Property, page 25).

Health insurance

Before you marry, contact the person incharge of fringe benefits where you work (orworked, if retired) to arrange for health insur-ance for your spouse.

If each of you has health insurance, investi-gate the benefits of each to decide which policyto continue. Find out the deadlines for addinga family member to an already existing policy,and whether physicals are required. You mayneed to act promptly after your wedding. Youwill also want to clarify whether there is a


waiting period for receiving benefits. This canbe especially important if you are pregnant orplanning a pregnancy, or need treatment for apre-existing condition.

If you are self-employed and not coveredby a group health policy, look into non-grouphealth insurance, or a group policy via an association.

Start a medical history for your newfamily. Include:❚ Allergies or allergic reaction to any med-

ication or food

❚ Illnesses:

Chronic and serious, past and present

Close family; for example, cancer, dia-betes, heart disease, or hemophilia

❚ Immunization and inoculation records

❚ Medications you take regularly,including prescription, herbal and over-the-counter

❚ Surgeries, past; include dental

❚ Physician’s and dentist’s name andaddress, for each family member

Homeowner or renters’ and

liability insurance

Many couples marry without householdinsurance. If they have been living at home,they have relied on parents for this coverage.Combining two people’s possessions may resultin more property being under one roof. Youmay want to add extra coverage for items notnormally covered by household insurance —computers, jewelry or sterling silver, forexample. In addition to insurance that coversyour own losses, liability insurance coversyour obligation to reimburse other people forlosses they suffer, such as from a hazard or acci-dent you may cause.

Marriage is the time to obtain a policy ifyou choose to protect yourself from loss in caseof fire, wind and water damage, theft and lia-bility. You can get a policy to cover weddingpresents. But by obtaining a homeowner orrenters’ policy before your wedding date, youmay have overall coverage.

In the beginning, your possessions may below in value. But it is suggested that your ini-tial policy be written for about $50,000 of per-sonal property coverage and personal liabilitycoverage of $100,000. Cost will depend onlocation, type of building, and value of furnish-ings you select. You can save money by havinga policy with $250 or more deductible.

If you are buying your own home, youmay have a homeowner policy that includesyour house, contents and liability. Consult aninsurance agent, who will be happy to adviseyou.

If you are renting, the best all-aroundprotection is a tenants’ policy that takes care ofyour belongings and liability. Check to see thatthe policy includes fire, lightning, waterdamage, theft, liability coverage and additionalliving expenses — both at and away fromhome.

Be sure to know what your policy coversand what it does not cover. In particular, checkto see whether the policy covers the currentvalue of items lost, or their replacement costs.Current value covers what you paid for theitem minus depreciation.Replacement costs cover the cost to replaceeach item at today’s price.

Life insurance

Need for life insurance will vary as changecomes with age and financial responsibilitiessuch as employment, children and home own-ership.

If you have life insurance policies, you maywant to change the beneficiary and add contin-gent beneficiaries to reflect your new maritalsituation.


Marital property law has special rules todetermine the ownership classification of lifeinsurance policies. Some may be individuallyowned, some marital property and somemixed — part marital and non-marital —depending on when they were acquired (seepage 19).

When policies have a marital propertyinterest, the surviving spouse can claim a por-tion of the proceeds as marital property even ifa third party has been designated as the benefi-ciary. Written consent may be used to changethe classification of insurance proceeds. Discussyour immediate and future needs with yourinsurance agent.

Consider why you are buying life insur-ance. Does a parent, child or other familymember depend on you for support? Will yourspouse be self-supporting? Do you have anylarge, outstanding debts including mortgage?Will your spouse need your earnings to pay anydebts, such as educational expenses?

Compare benefits provided under theWisconsin State Life Fund with others youinvestigate. You can get insurance informationfrom the state Office of the Commissioner ofInsurance (see Resources, page 31).

Motor vehicle insurance

If you owe money on your car, your cred-itor will probably require you to carry colli-

sion insurance. You will probably also needliability insurance.

The minimum limits for a policy writtenin Wisconsin after November 1, 1982, are$25,000/$50,000/$25,000. This provides upto $25,000 for bodily injury liability for eachperson in an accident, $50,000 total coveragefor each accident, and $25,000 propertydamage liability.

You may wish to buy more coverage tocompensate for higher financial losses in caseof serious accident, injury or property damage.Based on recent legislation, higher limits aresuggested. For example, 1997 Wisconsin Act

89 increased wrongful death liability

claims from $150,000 to $500,000 for minorsand $350,000 for adults.

Policies require that all drivers in thehousehold be declared on a policy.

Be sure to change your declarations onyour vehicle(s) as of your wedding date. Motorvehicle insurance may be held separately orjointly. Many companies offer auto insuranceon a multi-car policy that covers all vehicles ina household whether owned and registeredjointly or separately. See your insurance agentabout making necessary changes, because theremay be advantages to combining auto coverageinto one policy. Multi-car insurance usuallyresults in lower premiums.

These insurance premiums may decreaseafter you get married. Some companies willadjust the premium as of your wedding date,and the savings will be reflected on your nextpremium payment.

What information will you need to adjustthe insurance policy?❚ Your present policy or policy number

❚ Your name and driver’s license number asthey appear on your driver’s license

❚ Social Security number

❚ Date of birth

❚ Occupation

❚ Use of vehicle and number of miles drivento work

❚ Percent of mileage you each drive eachvehicle

❚ Age and type of vehicles: models, horse-power, serial numbers

❚ Driving history including any accidents ortraffic violations for each person for thelast three years

❚ Vehicle ownership — joint or individual


Where to keep records and papers (Check box ✓ )

—————— File at home ——————

Safe Temporary Permanent In your

Item deposit box file1 file2 wallet

❑ Account books x x

❑ Adoption papers x

Advance directives:❑ List of who has copies x x❑ Living will (Declaration to Physicians) 3 x❑ Power of Attorney for Finances and Property x❑ Power of Attorney for Health Care 3, 7 x

❑ Bank statements x

Cancelled checks:❑ For year x❑ For paying taxes & important purposes x

Certificates:❑ Birth, tribal enrollment x❑ Death x

❑ Citizenship papers x

❑ Contracts — Installments 4 x

❑ Driver’s license or Wisconsin ID x

❑ Employment record x

❑ Government savings bonds x

❑ Guarantees, warranties, instruction books x x

❑ Health records, medical history x

Household inventory:❑ List x x❑ Photos or video x x

❑ Identification 5 x

Insurance:❑ Letter of government compensation for

service-incurred disability x❑ List of policies x❑ Policies x

❑ Marital property agreement x

❑ Marriage & divorce records x

❑ Membership cards x

❑ Military discharge papers x

❑ Mortgages x

❑ Notes — Mortgage, treasury, etc. x

❑ Passports x

❑ Real estate papers, abstracts, deed x

❑ Receipts and receipted bills 4 x x

❑ Receipts, periodic — Utilities, telephone x x

Social Security card:❑ Top portion x❑ Bottom portion x

❑ Stock certificates & investments x

❑ Tax returns — Income and property x

❑ Vehicle registrations 6 x

❑ Vehicle titles and bills of sale x

Wills & trusts:❑ Signed originals x❑ Unsigned copies 7 x

See footnotes on following page.

ResourcesAdvance directives — Statutory advance

directives forms (see also UW-Extensioncounty office listing, next page). For twocopies each of the Declaration to Physicians(living will), Power of Attorney for HealthCare or Power of Attorney for Finances andProperty statutory forms, send a separatestamped, self-addressed business-size enve-lope (no. 10) for each one you request to:

Division of HealthWisconsin Department of Health and

Family ServicesP.O. Box 309, Madison, WI 53701-0309

Blood tests — If you do not know your HIVstatus, you can get referrals for anonymousor confidential HIV testing from a publichealth nurse (see local government listings inyour phone book); or call toll-free,statewide:

Wisconsin AIDSline

(800) 334-2437 (800-334-AIDS)In Milwaukee: 273-2437 (273-AIDS)

http://www.arcw.org (English or Spanish)

Credit and debt — See UW-Extensioncounty office and Web listings on the nextpage.

Driver’s license or Wisconsin identifica-

tion card (for people who do not drive):Wisconsin Department of Transportation,Division of Motor Vehicles (see“Transportation, Department of” understate government listings in your phonebook).

Insurance — Information on benefits pro-vided under the Wisconsin State Life Fund,for comparison:

Office of the Commissioner of InsuranceP.O. Box 7873Madison, WI 53707-7873(800) 236-8517—7:45 a.m.– 4:30 p.m. M-FIn Madison: 266-3585

http://badger.state.wi.us/agencies/oci/slif.htm

Marital property agreements — A MaritalProperty Handbook: An Introduction toWisconsin’s Marital Property System by JuneMiller Weisberger and Teresa Meuer, 2ndEdition (Madison, Wis.: Center for PublicRepresentation), 1989.This handbook includes the Wisconsinstatutory Marital Property Classification andIndividual Property Classification forms.(Check your local library.)

Marriage license — Information aboutsecuring a marriage license, eligibilityrequirements, fees and method of paymentis available from your county clerk. (Seelocal government listings in your phonebook.)

Property titles — Information about how tochange name(s) on titles of property youown is available from your county or cityrecords office. (See local government listingsin your phone book.)


1 Use for current transactions and records used in thecourse of a year, including bills and receipts.

2 Use for records seldom used but needed to establishinsurance, ownership, estate settlement, financial andlegal matters.

3 Keep copies with your health care provider and yourhealth care agent.

4 Keep for six years after paid.5 Carry your name, address, whom to notify, special

health information, doctor and hospital, advance direc-tives wallet card.

6 Keep motor vehicle registration in the vehicle.7 Wills and powers of attorney documents may be held at

the county register in probate office for a small fee.

➞

University of Wisconsin-Extension

county office (listed under county govern-ment in your phone book):Provides educational information and pro-grams on managing you money, buying andmaintaining a home, parenting, saving andinvesting, estate planning, and more. Theseand other publications are available fromyour county UW-Extension office or theaddress on the back cover:

■ Advance Directives for Health Care:Wisconsin Living Will and Power ofAttorney for Health Care B3604

■ Consumer Credit (English or Spanish):

Shopping for Consumer CreditNCR 606-1

When There’s an Error on Your Credit Card Bill NCR 606-2

Your Credit Report NCR 606-3

■ Family Estate Planning in WisconsinB1442

■ HomeWise: Help for New HomeownersB3618

■ Household Inventory B2389

■ Money 2000 and Beyond:

Organizing Your Financial Records B3709-1

Taking Control of Your Spending B3709-2Tracking Your Spending B3709-3Using Power Payments to Pay off Debt

B3709-4Using a Check Register to Track Your

Expenses B3709-6 Use with: Check Register Tracking System B3709-6

■ Our Family Account Book B2372

■ Our Family Records B2369

■ Parenting the First Year NCR 321(English or Spanish)

Parenting the Second and Third Years NCR 578

Vehicle — Motor vehicle title changes andfees:Wisconsin Department of Transportation,Division of Motor Vehicles (see“Transportation, Department of” understate government listings in your phonebook).

Voter registration — You can register at thepolls, or contact your city, town or villageclerk (see local government listings in yourphone book).

Web sites — If you do not have Internetaccess, try your local library. Many librarieshave computers linked to the World WideWeb.

■ About the House: Solutions for HomeCare Problems, UW-ExtensionCooperative Extension:http//www.uwex.edu/house

■ Money 2000 & Beyond, UW-ExtensionCooperative Extension:http://www.uwex.edu/ces/money2000

■ Parenting,UW-Extension:http://www.uwex.edu/ces/flp/parenting

■ Your Money Matters, WisconsinDepartment of Financial InstitutionsOffice of Financial Education:http://www.wdfi.org

Information about legal and financial aspects ofmarriage is available from many sources, a few of whichare listed in this guide. Information is provided as a con-venience to readers. This is not an endorsement byUniversity of Wisconsin-Extension, nor does it cover allissues. Prices and availability are subject to change.


Index of technical

and legal termsTerms are in bold letters and defined on

the following pages:advance directives, 24 —

living will (Declaration to Physicians), 25persistent vegetative state, 25terminally ill, 25

power of attorney for finances, 25agent, 25

power of attorney for health care, 24health care agent, 24incapacitated, 25

affidavit, 1

bequest, 21

bona fide, 14

checking and savings accounts, 26 —pay on death (POD) or transfer on death (TOD)

beneficiary, 26personal representative, 8signature card, 26survivorship, automatic right of, 26

common-law marriage, 1

competent, 1

consent —age 16 to 18, 1life insurance beneficiary, 8, 20, 29pension plan beneficiary, 8unilateral gift, 20

credit, 16 —credit worthy, 16Equal Credit Opportunity Act, 16family purpose, 16

debt, 16 —family purpose obligations, 17liability for most, 18other obligations, 17pre-marriage or pre-Marital Property Act

obligations, 17satisfaction, 17support obligations, 17tort obligations, 17

estate planning, 22taxable estate, 22

insurance —collision, 29current value, 28liability —

homeowner or renter, 28motor vehicle, 29wedding, 2wrongful death, 1997 Wisconsin Act 89, 29

medical history, 28replacement costs, 28Wisconsin State Life Fund (compare to), 29

invalid, 1

Marital Property Act, Wisconsin, 9 —classification, 10community property, 9determination date, 9division, presumption of equal, 11income, 11interest, 12life insurance, 19, 29

consent, beneficiary, 8, 20mixed asset, 19, 29

marital property, 11marriage, 9mixing rule, 12 —

non-marital property, 12individual property, 12unclassified property, 12

pension plan, 18 —consent, beneficiary, 8ERISA, Employee Retirement Income

Security Act, U.S., 18REA, Retirement Equity Act, U.S., 18terminable interest rule, 19

principal, 12reclassify, unilaterally, 12safe deposit box, 8

co-lessees, 8personal representative, 8

title, 13trace, 12tracing rule, 24unilateral statement, 12


marital property agreements, 13 —actual knowledge, creditors, 18enforceable, 14, 15enforceable at divorce (contrast with), 15

equitable, 15meaningful choice, 15

statutory marital property agreements, 15financial disclosure, 15Terminable Individual Property

Agreement, 15Terminable Marital Property Agreement, 15terminate, unilaterally, 15

marital property, gifts of, 20 —title, changing, 7to each other, 21unilateral gift, 20

consent, 20date of discovery, 21reasonable, 21

marital property, survivorship, 13 —conveyance, 13 full-basis adjustment, 13 homestead, 13 probate, 13

Medical Assistance/Medicaid, 23

surname, 5

taxes —capital gains tax, one-time exclusion, 2 estate, 22 graduated tax, 1 income tax, 1 marriage penalty, 1 Note: Bills to eliminate the marriage penalty are

frequently introduced in Congress. Taxbrackets are adjusted for inflation each year.

trust, 23 —living trust, 23

incapacity, 23 irrevocable, 23 revocable, 23

testamentary trust, 23 terminate, 23

trustee, 23

unilaterally, 12

will, 21 —bequest, 21death in common accident clause, 22personal representative, 8probate, 13

probate assets, 22probate estate, 22

statutory will, 22Basic Will, 22Basic Will with Trust, 22

without a will, 22 —intestate succession, Wisconsin laws of

(also intestacy), 22non-probate property, 22probate property, 22


Acknowledgements — Portions of this publicationwere adapted with permission from:

Understanding Wisconsin’s Marital Property Law, byRichard J. Langer and Linda Roberson (Eau Claire, Wis.:Professional Education Systems, Inc.), l986.

Graphics copyright © 1986 by Koritzinsky, Neider,Langer and Roberson, Madison, Wisconsin, reprintedwith permission.

This publication contains copyright protected material.Permission is required from each copyright owner beforephotocopying or reprinting.

This information is not intended to substitute for legaladvice, nor does it cover all issues. For your specific needs,check with your attorney.

© 2000 by the Board of Regents of the University ofWisconsin System doing business as the division ofCooperative Extension of the University of Wisconsin-Extension. Send inquiries about copyright permission to:Director, Cooperative Extension Publications201 Hiram Smith Hall, 1545 Observatory Dr.Madison, WI 53706

Authors: Karen P. Goebel, professor and extension spe-cialist, Consumer Science, University of Wisconsin-Madison; Linda Roberson, Madison attorney concen-trating her practice in family law, estate planning andmarital property issues; Joan Kinney, family resourcemanagement program assistant, UW-Extension. Theauthors thank those who wrote the previous publication:Joyce Albrecht, assistant professor, Family Development,and family living agent, Washington CountyUW-Extension, and Sharon A. Burns, financial consul-tant, Columbus, Ohio. Thanks also to Susan Futterer,

Philip E. Harris, Lisa Jansen, Chris Kniep, Ann McLean,Tess Meuer and June Weisberger.

Reviewers: Reviewed in 2000 by Philip E. Harris, pro-fessor, Agricultural and Applied Economics, University ofWisconsin-Madison; original review by Rick Langer,Madison attorney concentrating his practice in estateplanning; Don Last, College of Natural Resources,UW-Stevens Point, and soil and water conservation spe-cialist, UW-Extension; Kay Stanek, former family livingagent, Dodge County UW-Extension.

Produced by Cooperative Extension Publications,UW-Extension: Susan Anderson, designer; Rhonda Lee,editor.

University of Wisconsin-Extension, CooperativeExtension, in cooperation with the U.S. Department ofAgriculture and Wisconsin counties, publishes this infor-mation to further the purpose of the May 8 and June 30,1914, Acts of Congress. UW-Extension provides equalopportunities and affirmative action in employment andprogramming, including Title IX and ADA requirements.If you need this material in an alternative format, contactCooperative Extension Publications at (608) 262-2655(Voice & TTY) or the UW-Extension Office of EqualOpportunity and Diversity Programs. Before publicizing,please check this publication’s availability.

This publication is available from your Wisconsin countyUW-Extension office or:

Cooperative Extension Publications45 N. Charter St., Madison, WI 53715Toll-free: (877) 947-7827 (877-WIS-PUBS)In Madison: 262-3346; Fax: (608) 265-8052Internet: http://www1.uwex.edu/ces/pubs

B2707 Look Before You Leap: A Guide to the Legal and Financial Implications

of Marriage and Remarriage in Wisconsin (2000)

R-9-00-8M-200