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William Quigley

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A Modest Proposal: Why Can't Couples Have a Proxy Statement for Their "Merger & Acquisition"?

Posted: 09/29/11 11:18 AM ET

The recent debates over gay marriage, civil unions and what exactly marriage even means today reminded me of how antiquated our marriage and family laws have become. They don't take into account how the nature of wealth has vastly changed over the last few decades. I am neither an advocate nor an opponent of marriage but I do believe that the financial obligations we assume when entering into a marriage contract, including the court-ordered redistribution of personal wealth that takes place upon divorce, are not well understood by most of our citizens. Even lawyers I have known have been confused about the differences between spousal versus child support. If Chris Anderson really wanted to investigate the long tail, he should have taken a look at the potential length of California spousal support terms.

California has always been the leader in divorce and alimony law, and I think it is time the state started addressing the profound inequities alimony judgments have created. In short, alimony has evolved into a pension plan for the less successful spouse. In many cases, this pension commitment becomes a lifelong burden for the paying spouse, regardless of who initiated the divorce and under what conditions the marriage dissolved. It promotes unproductive behaviors as well, such as the alimony recipient avoiding employment in order to maximize spousal support. The spousal support payer may reluctantly forgo re-marriage as well, fearing the income of his/her new partner will be combined for the purposes of calculating higher support payments. If the state believes that promoting marriage among the population is a public good (a reasonable belief), then it needs to reduce the severe financial penalties associated with divorce. And since many marriages do end in divorce, it makes sense to acknowledge, upfront, the consequences of that likely outcome.

One marriage-neutral option would be to provide every couple with a simple disclosure form that highlights the financial obligations they are about to assume.

This disclosure form could easily fit on just a single page, with disclosures of the following sort:

1. The State of California recognizes your marriage as a legally binding contract.

2. By entering into marriage in this state, you agree to assume all debts incurred by your spouse during the marriage, whether or not you were aware of these debts when incurred, and whether or not you personally benefited from them in any way.

3. You also agree to provide monetary payments to your spouse in the event your marriage dissolves and you are the higher income earner. The amount and length of these payments will be decided by a court of law.

4. The State can and will use its court and police powers to enforce the financial obligations you are assuming in the event of divorce, including the garnishment of your wages and your incarceration in the state prison system for your failure to comply with court ordered spousal payments

5. If your spouse so chooses, he/she may divorce you at anytime. In so doing, he/she may be legally entitled to receive monetary payments from you for a time period that may extend to the rest of your natural life. These spousal support payments may exceed 50% of your income, could be adjusted upward if you remarry and as a result have more disposable income, and they cannot be eliminated though bankruptcy.

6. The conduct of your spouse, including him/her having one or multiple out-of-wedlock affairs, does not change your legal obligation to provide spousal support.

7. If you are the higher earning spouse, you may be required to pay your lower earning spouse's divorce related legal bills. This is the case regardless of which spouse initiated the divorce and regardless of the conduct of either spouse during the marriage

8. If you have questions or concerns about what financial obligations you are about to assume, it may be advisable to consult with a family law attorney before signing your marriage contract.

The most important point to highlight when it comes to marriage is that the State of California recognizes it as a legally binding contract. Too often that simple fact is misunderstood or ignored by the couple getting married. In fact, curiously, the one thing the state absolutely does not care about is whether or not a couple is "in love." There is no requirement to be "in love" to be legally married in the State of California, or any other state for that matter. Only in recent human history -- perhaps the last 150 years -- has the predominant purpose of marriage been associated with romantic love. It has nearly always been, and remains in much of the world, primarily an efficient method of property redistribution. In the end, the state, and your future divorce lawyer, care only about one thing: the legal enforceability of the marriage contract as it relates to the financial obligations borne by the higher wage earner.

Our society has become accustomed to warning its citizens of potential legal and financial hazards every time they enter into a contract, even those of relatively small consequence. We as a society like to be informed when we are assuming a financial obligation, particularly one that is potentially large and open-ended. Isn't it odd then that while we require our citizens to initial car rental forms (just in case they didn't realize that they will be charged $6 a gallon to fill the gas tank), we let 18 year olds get married without so much as a tap on the shoulder about the greatest financial liability they will likely ever assume? Keep in mind that we are talking about state-sanctioned marriage, a legally enforceable contract. Shouldn't such a contract, with its profound lifelong financial repercussions, only be assumed by those fully informed of its potential consequences? This is why I completely support a marriage financial obligation disclosure form.

 
The recent debates over gay marriage, civil unions and what exactly marriage even means today reminded me of how antiquated our marriage and family laws have become. They don't take into account how t...
The recent debates over gay marriage, civil unions and what exactly marriage even means today reminded me of how antiquated our marriage and family laws have become. They don't take into account how t...
 
 
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Icecube
NFC East. Pick your poison.
11:05 PM on 10/03/2011
Take it from an old fool. MEN avoid marriage at all cost. Get your education and become an international traveler and enjoy your carefree life. Marriage will only set you back.

If I knew then what I know now.
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Targa3141
11:35 PM on 10/03/2011
Thank you, Wise Man. The feminists and other dullards will object to your post. Those of us with similar experience know you speak the Truth.

Marriage is slavery and bondage for men - if you are male, avoid it at all costs!!!!
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Thaag Tidestalker
Axial Tilt: the Reason for the Season!
05:45 AM on 10/04/2011
I'm a feminist and I'll never marry again. Ten years of blatant abuse, neglect, and cheating. I've learned my lesson, men can kiss my butt.
05:38 PM on 10/08/2011
FYI Targa and IceCube. There are ALOT of women who feel the same way!
RealistBC
Micro-bios must pass muster.
03:30 PM on 10/01/2011
If you are going to worry about money when considering a marriage, you'd be better served by hiring professionals for all the domestic chores - including sex.
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Targa3141
11:33 PM on 10/03/2011
You must be a woman. You know, the recipient of 97% of alimony, etc.
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11:59 PM on 09/30/2011
This writer is whining. California has community property law. There is no alimony but there is spousal support. Most of the time, people are not taken for a ride or unreasonably penalized. That's why we have judges and courts. I've seen life long non-working wives divorces and they have gotten community property and five years extra support. Most people are lucky to get some share of the community property they have earned together. Marriage isn't like a simple contract where both are on an even footing and nothing changes. People have children, their health changes and they make decisions for the benefit of the family that can lead to them losing economic prospects and experience. So it's unreasonable to whine about some mythical unfairness in the system. For most people, marriage and divorce are very predictable activities.
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irishdoc
It's not me..it's you. Really
01:17 AM on 10/01/2011
Ummm...California has alimony. Trust me, I pay it to a 36 y/o male who voluntarily quit his job so he can live off of me. I am not supporting him be a better person. I am forced to prolong his hiatus from the real world and the longer it continues the less likely he will be to be successful in the future. All this because I chose to get married.
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Targa3141
02:32 AM on 10/01/2011
Enjoy your equality - now you know how it is to be treated like a man.
10:02 PM on 09/30/2011
If a man does not think he is in love enough to care absolutely nothing about his worldly posessions in exchange for your hand in marriage, .................he is "not in love" enough to get married in the first place. In other words, he has not "fallen" in love.

I was taught that a man is suppose to give the woman he loves everything he has. A woman, on the other hand, is suppose to give herself, meaning unquestionable faithfulness, loyalty until death, and of course children and a "castle" to come home to.
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UDKM2010
Life is better in Boardshorts.
08:48 AM on 10/01/2011
It just never turns out that way.
09:09 AM on 10/01/2011
Sadly, you are correct, but that is because as humans, we have all kinds of issues.
Despite them all, "hope does spring eternal," and we all want to believe that we are different or invincible and what happens to other people "will never happen to us."
.....Yeah, right.
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Ted Cantu
08:21 PM on 09/30/2011
Glad im not married. I love my money too much.
07:44 PM on 09/30/2011
This article has a few errors. No one, even child support and spousal can garner your wages over 40%, in California. Child support is always the first obligation. New spouses incomes may be asked for, but they are not used to calculate child support unless you have a parent trying to work system by claiming under employed, nor spousal support. I'm tired of the men get screwed attitude that is prevalent right now, and happy to see there are more and more stay at home dads, these days. If you choose to marry and have children, and if you choose to have one parent stay home or reduce working hours and opportunities to care for children, then be prepared to help that parent get back on their feet, if such marriage ends. The primary years for earning and career advancement happen to coincide with primary child bearing years, the 30-40's.
09:34 PM on 09/30/2011
"then be prepared to help that parent get back on their feet, if such marriage ends."

I don't think the notion that a homemaker receive temporary assistance to get on their feet is in dispute, but the notion that alimony is, as the article puts it, "a pension plan for the less successful spouse." (Where "success" is defined as earning power)

When circumstances necessitate it, alimony should be like unemployment: a temporary fix for a temporary situation. It should not be a life-long source of income that disincentivizes re-entering the workforce at one's full capability.

"The primary years for earning and career advancemen­t happen to coincide with primary child bearing years, the 30-40's."

Primary child bearing years for women are in their 20s to early 30s at the latest, not 30s-40s. Greater age reduces fertility and increases the risk of miscarriage and genetic abnormality, especially after the age of ~35 is passed.
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12:02 AM on 10/01/2011
Many people do not consider child care activities to end when the child is born. Many marriages include a parent staying home for ten or more years to provide a traditional childhood experience for the offspring.
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Targa3141
01:35 PM on 10/02/2011
http://www.sanbenito.courts.ca.gov/family_law_facilitator.htm

Superior Court of California, County of San Benito

"Depending on the number of children and the amount of income the paying parent has, the percentage of take-home pay which goes for child support can be anything from about forty percent to fifty percent or more of that parent’s after-tax income."
07:24 PM on 09/30/2011
Notice there is nothing about religion, because marriage is a civil contract. Yes, you can get married in a religious ceremnoy, but you still have to file papers with the state in order for the marriage to be recognized. All the people who are against Marriage Equality on religious grounds need to understand that. Don't memorialize marriages in your houses of worship if you don't want to - it is already happening: a non Mormon cannot marry in the LDS church, many rabbis will not perform ceremonies in their temples if one of the spouses is not a Jew. So don't marry two people of the same sex. But since marriage is a civil matter, why continue to legislate as if it were only a religious issue?
RealistBC
Micro-bios must pass muster.
03:32 PM on 10/01/2011
My daughter's best friend is Hindu, and Hindu marriages are not recognized in the US. The friend had to have a civil ceremony to be married here even though she was born here.
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Thaag Tidestalker
Axial Tilt: the Reason for the Season!
05:53 AM on 10/04/2011
If the marriage was officiated by a legally ordained minister, it's recognized no matter what the religion. If the minister does not want to go through the trouble of getting ordained legally, they should not complain that they can't legally officiate weddings.
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jclew
ToThineOwnSelfBeTrue
06:58 PM on 09/30/2011
This is the reason why there are marriage counseling. To eliminate doubts and educate the couple on the responsibilities they are about to enter into. And maybe people should not get married if they have these underlining fearful, negative thoughts, b/c surely as you get married, when tough times come, and they will, all those negative thoughts will erupt causing friction and before you know it you have lost that Loving feeling.
RealistBC
Micro-bios must pass muster.
03:32 PM on 10/01/2011
I have dealt with marriage counselors. I have yet to find one who knows what s/he's doing.
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jclew
ToThineOwnSelfBeTrue
02:34 PM on 10/02/2011
Good marriage counselors are there to give you guidelines on what to expect in marriage on a financial bases as well as communication with family that you are marrying into.
Spiritual marriage counselors--your pastors-- can help you with the truth of the matter, living with and through the differnent stages that comes in marriage. Finding people dedicated, sincere, and truthful is hard but worth it. Sorry you have had such a bad call on m.counselors.
06:57 PM on 09/30/2011
Gosh, these laws need to change. They're archaic. But at the same time, you shouldn't get married to get divorced. Marriage is a life commitment, don't get married if you're not going to stick with it through thick and thin. There's no point, in this society where you can live with your partner and share everything (even kids) but a name.
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Alexandra Spinner
Cutting edge with no band-aid
06:45 PM on 09/30/2011
For the record. These laws are already in place. The awareness is not. There is also something called a PRE-NUPTIAL AGREEMENT.

Me 1 marriage, 1 divorce, no kids, no debt.

Love is love. Business is business.
11:19 PM on 09/30/2011
Right, and if you want alimony, that is where it should be spelled out. As it is, the state makes you pay an outrageous amount for something you never agreed to. What is that called again? Oh, yeah. Slavery.
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damomb01
Yes, I breastfeed...easy, economical & oh so good!
06:41 PM on 09/30/2011
Today's day and age this bit of "advice" does not surprise me. Not to say that Mr. Quigley is not offering some intelligent reasoning here, but have people forgotten that the reason for marrying is not for mergers and acquisitions?!!! This is just craziness, and par for the course for when God is taken out of the equation. People need to marry for the right reasons to begin with, and realize that marrying is not about serving YOURSELF in the first place!
08:00 PM on 09/30/2011
People usually do think that they are marrying for the right reasons. But, unfortunately, when they realize that marriage is a reality not a fairy tale, divorces do happen and divorces are ALL about mergers and acquisitions!!!!!
11:22 PM on 09/30/2011
Uh, some of us think "God" took himself out of the equation. He is free to show up any time he wants. I, for one, am hankering to see some miracles.
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damomb01
Yes, I breastfeed...easy, economical & oh so good!
06:26 PM on 10/01/2011
Sven, God is all around you, and miracles (big and small) happen before your eyes daily. It's a matter of choosing to believe...but nobody can MAKE you, nor can you shake the faith of a true believer - faith is not something that can be argued. I firmly believe that God has not and will never abandon His people...but His people have consistently turned their backs on Him (making Him into a fictitious fairy tale, denying His existence, etc.). It's not going to change what is to come for me, but it may have a significant impact for you. And I cannot fathom my marriage without God being the foundation...it only makes us stronger, and gives me a more meaningful reason for being who I am (wife, mother, daughter, sister, etc.).
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bds6543
06:39 PM on 09/30/2011
What? If the woman is a stay at home wife raising kids.. and can't cultivate a "career". then she DESERVES to be supported in the manner in which she is accustomed. Maybe she might not be as well educated, or a "career" woman.. She should be supported "for life".. if she has put in over 10 years into "doing time" in the marriage.
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07:15 PM on 09/30/2011
really
09:13 PM on 09/30/2011
Why should a person who makes the personal decision to become a homemaker be guaranteed financial safety for life?

A breadwinner that decides to work outside the home and stays with the same company for 10+ years isn't guaranteed anything. Not only are they not guaranteed anything, they must also accept the risk that they will have to divide the future fruits of their labor with another adult for the rest of that adult's life regardless of circumstance. (e.g., a homemaker engages in adultery and initiates divorce and the breadwinner is forced by the state to pay the adulterer lest the breadwinner suffer the legal consequences.)

This isn't an equitable situation. Homemakers are still adults and adults are expected to take care of themselves if the need arises. Marriage shouldn't be a golden ticket that's redeemed through divorce.
07:23 PM on 10/01/2011
Your post is logical and equitible. This makes it incomprehensible to all women save Irishdoc.
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Gary Sawyer
Joe Citizen
06:24 PM on 09/30/2011
After many decades of batchelorhood, and not looking for a wife, I was persued by a wonderful woman. I found her charming, intelligent, creative, sexy, the whole nine yards. She had recently left a 14 year marriage, and she had a young daughter. After the daughter graduated high school and left our home, my brides attitude changed radically. Several years later I was sent packing. The bottom line is that I was used for financial purposes to help her through a troubling time in her life. So much for true love and sincerity. I'm also paying her monthly spousal support because she claims she cannot find a job that pays well enough to support herself. The truth is she doesn't want a "responsible" position because of the stress and all that goes with a decent paying job. So my point is to TRY and make certain you know what you're getting yourself into. People can be very deceitful, so you probably should sign some kind of premarital document to protect yourself should the marriage go south. Most do.
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bds6543
06:44 PM on 09/30/2011
Noone ever"knows what they are getting into" in a marriage. People can change overnight, or over the years. and become very different people. All their character defects come thru. If you were the major earner and breadwinner thruout the marriage, you should pay her, no matter what the cirucumstance. You didn't say how long you were in the marriage.. Where was the father of this child that she brought with her into this marriage? Did he not pay child support for the child? Is she out of the "job market".. b/c of several years of being unemployed, and a stay at home wife and mother? She needs "unemployment" payment.. just like a laborer gets.


I am sure that you played a part in this.. and you are not a "victim" There are always two sides to the story.
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07:08 PM on 09/30/2011
you must be a female lower paid person
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07:09 PM on 09/30/2011
really you wont post that
06:19 PM on 09/30/2011
Or . . . you could just marry the right person, or a person for the right reasons, to begin with. That would eliminate the need for any of this other foolishness. Yes, I am married -- 41 years. I have had four different careers, so I certainly have contributed my share. We have a joint checking account and consider all assets "ours," no matter how we came by them. Obviously, it's working.
06:48 PM on 09/30/2011
I agree.. I am a woman have been married 50 years and always worked even though I had children, but you're right.... today people get married for the wrong reasons and at the top of the list is MONEY! A male family member who had a business for 10 years got married and has lost EVERYthing in the state of NJ. WHY? The way I see it is the women who are "gold diggers" can get more than half of his assets and then get LIFETIME alimony. When he is running out of money due to the economy problems, he is accused of "hiding money" and ordered to sell his business equipment. Divorce in this state is a nightmare for small business owners. I don't understand the whole idea of alimony. I thought divorce meant the end of a relationship but it doesn't seem to be the case in a lot of the states. I just don't get why women have to be supported after divorce. Aren't they adults and should be able to support themselves. Child support ends and adult support goes on for a lifetime...Ridiculous! It's time to update the laws for the 21st century!
06:49 PM on 10/01/2011
Can't comment on the reasons men marry, as I've never been one. Besides money, however, many women marry to escape a bad home situation, or to have the fancy wedding. or because their kid(s) need a father, or to stake their claim to a man they think other women might want . . . And then you wonder why marriages fail? More reasonable to wonder why they don't.
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coffee tea
05:45 PM on 09/30/2011
Golly gee, how romantic. Makes total sense though, especially for today.