When it comes to marriage, there are different types of agreements that couples can enter into. One of these is the sole and separate agreement, which is commonly used in New Mexico. In this article, we will discuss what a sole and separate agreement is, why it’s used, and how it affects spouses in New Mexico.
What is a Sole and Separate Agreement?
A sole and separate agreement is a legal document that spouses in New Mexico can sign to protect their individual property in the event of divorce. This agreement designates certain property owned by either spouse as “separate” property. Separate property refers to assets that belong to one spouse and are not subject to division in a divorce settlement. In a sole and separate agreement, spouses agree to keep their separate property separate and not to commingle it with marital assets.
Why is a Sole and Separate Agreement Used?
One reason why couples in New Mexico may opt for a sole and separate agreement is to protect their individual assets from being divided in a divorce settlement. This agreement can be particularly useful if one spouse has significant assets that they want to protect from being split with their former partner. Additionally, a sole and separate agreement can be used to protect assets that were acquired before the marriage or inherited during the marriage.
How does a Sole and Separate Agreement Affect Spouses in New Mexico?
If a spouse in New Mexico signs a sole and separate agreement, it means that they agree to keep their separate property separate from marital assets. This can affect the way divorce property is divided in a divorce settlement. Marital assets will typically be divided equitably between both spouses, while separate assets will remain with the individual who owns them.
However, it’s important to note that a sole and separate agreement does not mean that separate property is entirely off-limits in a divorce settlement. If the asset appreciates in value during the marriage, the increase in value may be subject to division. Additionally, if separate property is commingled with marital assets, it may become subject to division as well.
In conclusion, a sole and separate agreement is a legal document that allows spouses in New Mexico to designate certain assets as separate property. This can be useful for protecting individual assets in the event of divorce. However, it’s important to understand that separate property may still be subject to division in certain circumstances. If you’re considering a sole and separate agreement, it’s always a good idea to consult with a qualified attorney who can advise you on your specific situation.