Legal Tips

From LegalMessenger.com

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1. 1.1 1.2 1.3 2. 2.1 2.2 2.3 2.4 2.5 3. 3.1 3.2 3.3 3.4 3.5 3.6 Family Law Divorce Prenuptial Agreement Unmarried couples Business Law Starting Your Home Business Insurance Coverage Licenses and Taxes Tax Considerations Buying and Selling a Business Real Estate Law Buying Real Estate How to be a Successful Landlord Roommates Landlords Duties and Obligations Subleasing Eviction 7 8 9 10 10 11 4 5 5 5 6 3 3 4

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1. 1.1 Family Law Divorce Preparing for Divorce Open your own personal bank accounts (checking and savings) and transfer funds from joint accounts to your own personal accounts. Obtain credit cards in your own name if you dont already have any. If you dont have your own health insurance get all medical and dental work done while you have coverage from your spouses insurance. (Investigate whether you can still have coverage on your spouses insurance until the divorce is final). Make copies of all financial information while you still have access to it. (Tax returns, business records, bank accounts, investment records, mortgage records, deeds, prenuptial agreements, power of attorney documents etc.) Store the copies in a safe place outside your home (e.g. your parents or siblings home or a safety deposit box in your name) Strengthen your ties with family and friends and be open about your marriage problems. To ease the process, seek help from a therapist or a marriage counselor if you can afford it or if you are comfortable with it. If you are not working, start preparing for a job hunt. Prepare your resume and your credentials. Click Here For More Divorce Information at LegalMessenger.com Common Divorce Mistakes Giving all the control of the divorce to your lawyer. Your lawyer is a professional and fights for your interest. However, this is your divorce not your lawyers, and you are the one who will live with the consequences. Dividing up the property without an accurate calculation of inventory. Spending excessive time and money for lawyers to gather information. You and your spouse and exchange the information you need and can use mediation to accomplish this purpose. Allowing others to make decisions for you. Friends and family are there for support and you can listen to their advice. However, this is your divorce, not theirs. Dont let anybody tell you what you should do or how you should feel. Neglecting tax consequences. It is not uncommon for spouses to be surprised a long time after the marriage with a huge tax bill such as tax on capital gains on sale of property. Pay more attention to tax issues. Trying to win back your spouse by making concessions. 1.2 Prenuptial Agreement Also called premarital agreement, allows both spouses to protect their separate property. The big selling point of a prenuptial agreement is its flexibility.

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Allows spouses to protect themselves from debts incurred by the other spouse before or after the marriage. Also tackles situations where a spouse leaves a secure good paying job and relocates to live with the other spouse who is in a far geographical location. If the marriage does not work, it would be unfair for the spouse who relocated and left everything. Prenuptial agreements can address this issue. Allows the spouses to agree that everything they own and owe will become shared from their wedding day forward. The prenuptial agreement includes a through description of the property and debts the spouses own and owe respectively. This requires a lot of data gathering. Click Here For More Information About Prenuptial Agreements 1.3 Unmarried Couples Unmarried couples who live together do not have many of the legal protection provided by the marriage certificate. It would be wise to do the following: Maintain separate bank accounts Do not make financial contributions to an asset that will be held solely in your partners name. Maintain your independent capacity to support yourself and do not rely on promises of support from your partner. Do not make promises to support your partner. Do not adopt the same last name as your partner and portray yourself as a married couple.

Cohabitation Agreement Many unmarried couples these days are entering into a cohabitation or living together agreement for legal protection. Break ups happen just like marriages fail. So it is wise to plan ahead. The cohabitation agreement resolves the following: Responsibility of splitting expenses and paying bills. Responsibility of rent or mortgage . Division of property. Repair costs, closing costs and moving expenses in case the house is sold. Determining a fair price if one person wants to buy out the other. Click Here For More Information About Cohabitation Agreements 2. 2.1 Business Law Starting Your Home Business Ever thought of having your own business and of being your own boss? Well, now is the time for action. Setting up a small business has become easier now than it was in the past. With all the technological advancements designed for

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startup businesses and the inexpensive easy-to-use services offered on the internet, you can set up your own business in no time. You can start your business with a partner or partners or you can do it legally set up your business. This is important but this is only the beginning. You have to use your talents and time like you never have before, and focus on what you do best. You will be amazed what and how much you can accomplish. Your small business will be operated by very few employees; your partner(s) and yourself or just entirely by yourself. This doesnt really matter. Usually your small business will grow significantly in terms of income rather than employees. Your small business will have a minimal investment at the beginning, but it will probably cost more than you expect and take more time more than anticipated. Therefore, you have to be patient. On the other hand, small businesses sometimes succeed in a different direction than the one originally planned, so you have to be flexible. The real cost will be in terms of free time and possibly sleep, especially if you set up your business while you are employed. The key element of your small business will have to be the innovative ground breaking idea. Click Here For More Information About Business Ventures 2.2 Insurance Coverage If you are running a home based business, you will want your home owners or renters insurance to cover your home business including any related equipment and property. Most home insurance policies require you to disclose when you start a home business. Let your insurance broker know if you have a home business. Pay a small additional premium to have your business covered and secured. 2.3 Licenses and Taxes You need to register your business and obtain a business license in order to pay taxes. If you do not register your business and do not pay taxes on business profits, you may be subject to penalties and back taxes. 2.4 Tax Considerations You can reduce your taxes by deducting the business use of your home. You can deduct expenses such as rent, utilities, depreciation, home insurance and repair expenses if you meet the following requirements: You must regularly and exclusively use part of your home for your business. Regularly means that you use the designated part of your home on continuous basis. Exclusively means that you only use the designated part of your home for conducting the home business and not for any other purpose. Your home must be the principal place of business where you conduct all business transactions including administrative and management activities.

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2.5 Buying and Selling a Business Buying or selling a business is always structured either as an acquisition through asset or stock purchase or as a merger. Click Here For More Information About Buying and Selling a Business Asset Purchase The buyer usually prefers the asset purchase for the following reasons: The buyer can acquire assets only, without having to assume any liabilities of the seller. The buyer can also choose which assets to acquire and the seller can choose which assets to keep. The buyer has the option but not the obligation however to hire the sellers employees. The buyer has the ability to choose which contracts to assume.

Stock Purchase The seller (shareholders) usually prefers a stock purchase agreement because of favorable tax considerations. The shareholders may be able to realize capital gains treatment on the sale of stock. This avoids "double taxation" which can result from an asset purchase where the business entity is first taxed on sales proceeds, and the shareholders are then taxed again on distributions that may then be made to them. With a stock purchase, there is a better chance of preserving the status quo. Employees can remain in place. It may not be necessary to change title to assets or assign existing contracts to a different business entity. Good will and other intangible assets remain with the seller's business. Buyers are cautious of stock purchases because they assume the liabilities of the seller. The seller must anticipate that a buyer will expect some concessions. The buyer may, for example, insist on indemnification from the seller. Consequently, the purchase price may also be adjusted.

Click Here For More Information About Buying and Selling a Business Merger A merger is the combining two or more business entities into a single venture. There is no buyer or seller in a merger. A merger allows for economies of scale. Employees in duplicate positions may be laid off, but the intent is to improve the bottom line by cutting overhead and increasing efficiencies. There exists a tax benefit from a merger. Swapping stock will not result in any taxable gain to the shareholders of either of the merging organizations if properly structured.

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3. 3.1 Real Estate Law Buying Real Estate The first step in buying a new home is to familiarize yourself with the real estate contracts. Real estate contracts are rather lengthy so it is important that you understand the rights and obligations you agree to when entering into a legally binding contract. Real estate agents are trained to explain the contracts to their clients. Your agent must provide you with a sample contract. You should read over the sample contract and ask your agents about the unclear areas in the contract. Click Here For More Information About Real Estate Law & Agreements The agent will explain the contract and the repots associated with the real estate transaction. This process takes significant pressure off the client during the negotiation process. Everything should be put in writing and the words should be specific and cautiously chosen. In the event of litigation, it is what is in writing that matters to the courts. When you have found your new home, there are a few things you need to look into before making an initial offer. First, try to investigate other similar homes that were sold in the same neighborhood and base your offer on those numbers. Secondly, find the sellers motivation. Why is the seller selling their home? Why are they moving? How long has the home been on the market? And so forth. On the other hand, the agent considers the following before writing up an offer. Is the property still for sale or are these offers pending? Is it a probate or foreclosure sale? How much do the sellers owe and are they willing to carry back a loan? And who pays for certain transfer fees. All these issues affect how a contract will be written up. The negotiation process can be emotional so as a client, you have to be realistic with your offer. If you put forward a lowball offer, the seller may reject it along with further offers. Your agent will advise you on a reasonable offer and will present it to the seller. Furthermore, your agent will defend your offer and explain the reasoning behind it. It is best if you are not present at the negotiation between your agent and the seller. This way your agent can be more effective. Your agent knows more about the offer and the details entailed and can therefore present your offer in a positive light to the best of their ability. While the agent advises you on a reasonable offer, ultimately you have the final say on how much the offer will be. If your offer is reasonable, expect your agent to come back to you with a counter offer from the seller. At this time, you will be signing many papers including contracts, contract addendums, reports, disclosures and counter offers. Keep copies signed by all parties for your records.

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After your offer has been accepted by the seller, the closing process begins. During this time inspection of the premises will be ordered and scheduled. Consequently, the loan process begins. This also involves a lot of paper work and can be confusing due to the information load it entails. Your agent will stay with you throughout the transaction and walks you through the steps of the closing process. Keep an open mind, be realistic and educated about the whole real estate transaction which typically takes 30 to 45 days to close after a contract has been accepted. Click Here For More Information About Real Estate Law & Agreements 3.2 How to be a successful landlord

Renting to a tenant is a major business transaction and it is important that your screening process be handled professionally. In essence, you are extending thousands of dollars worth of credit to the tenant. You are also entrusting them with your property that is worth much more. A rental application completed and signed by the tenant is an essential step in securing a reliable tenant as well as safeguarding your rights as a landlord. With a signed rental application, the landlord can obtain the tenants credit history and credit report. A thorough screening process can eliminate negative consequences for the landlord as well as for other tenants in the residence. A recent study shows that the average risk from a bad tenant can amount to $1,500 which makes the screening process a good business investment. A screening process generally includes rental history, job history, legal history, reference check, credit report and banking information. By conducting a proper screening process, the landlord can avoid many problems associated with high turnover, property damage, slow payments and collections, moves without notice, disturbances and evictions. After the rental application process is completed, the second major step is the rental agreement. A rental agreement is extremely important particularly when it comes to a valuable asset such as real estate. In essence, Your tenant will take temporary possession of your property. The tenant is obligated by the law to abide by the rental agreement. If the tenant refuses to leave the property, the only way to vacate them is through the legal venue. This is why the rental agreement needs to be in writing, and the time to execute a written rental agreement is before the tenant takes possession of the property. No one said that it was easy to find the perfect tenant. As a landlord, you will probably encounter a few bumps and surprises along the way. What you probably need is a set of tools to identify the problems or red flags in the tenants credit profile. There are two straight forward points to be made here:

LegalMessenger.com _______________________________________________________________________ 1. DO NOT rent to a tenant who has an open bankruptcy. If they include the
rent they owe you in their bankruptcy, it is most likely that you will not be able to collect this money.

2. DO NOT rent to a tenant who is at high risk of declaring bankruptcy. This

can be identified if the tenant has a substantial amount of money in past due accounts and collections, and if creditors have issued a judgment against the tenant. Moreover, a high risk tenant can be spotted by other means such as high debt to income ratio, seasonal or temporary jobs among other things.

Click Here For More Information About Real Estate Law & Agreements 3.3 Roommates Things to consider when you choose a roommate: Personality Lifestyle Friends Budget Pets

It is wise to have an agreement in writing with your roommate. The agreement should provide for the following: Responsibility and ratio of splitting the rent, utilities and security deposits. Setting house rules regarding pets, smoking, partying hours and loud noise, overnight guests, cooking and cleaning responsibilities.

Your roommate should sign a rental agreement. This makes you both responsible for paying the rent. The landlord may require you to sign a new lease. If the roommate violates the lease: If your roommate does not pay rent on time, it is in your best interest that your roommate moves out. Start looking for a new roommate. If your roommate damaged the property, talk immediately with your landlord about what happened and cooperate with your landlord to repair the damage. This can absolve you from responsibility. Keep in mind however, that the landlord can hold everyone responsible. Assist your landlord to evict your roommate. If your roommate violently resists the eviction process, consider filing an anti-harassment or domestic violence order to protect yourself.

Click Here For More Information About Real Estate Law & Agreements

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3.4 Landlords Duties and Obligations Maintain the premises up to state and local housing codes Provide heat, electricity and hot and cold water Provide a means of getting rid of garbage, unless you agreed to take on this responsibility in your lease Provide keys, locks and window latches Control and treat insect infestations Make repairs to keep the premises in the same condition as when you moved in Maintain any appliances in the premises, unless you brought them with you or your lease says otherwise Provide smoke detectors as required by state law and make sure they are working properly at the time you moved in.

Click Here For More Information About Landlord Notices As a tenant, You have the right to privacy. The landlord may not enter the premises unannounced. However, the landlord has the right to access the premises with advance notice to do the following: Make repairs Inspect the premises before you move out Show the premises to prospective tenants

Repairs If something needs to be repaired, notify your landlord in writing and keep a copy for your records. Most states specify a period of time in which the landlord must start making repairs. If your landlord fails to perform the repairs within the specified period of time you are entitled to: Move out if the problem is threatening to your health or safety Hire someone to make the repair and deduct the repair expense from rent Make the repairs yourself and deduct the cost of supplies and reasonable labor costs

Click Here for More Information About Subleasing 3.5 Subleasing You are responsible for the rent being paid by the new subtenant. You are responsible for any damage done to the rented premises before your lease is up. The new subtenant is responsible only to you to pay the rent that is due.

Most leases require the landlords approval of any subtenant moving in. You can transfer your remaining interest under the lease by making an assignment. An assignment should be in writing and provides for the following:

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The new tenant legally assumes responsibility of the original lease. You are usually not legally responsible any more on the lease.

Click Here for More Information About Subleasing

3.6

Eviction A landlord has the right to evict a tenant under these conditions: If If If If the the the the tenant tenant tenant tenant fails to pay the rent breaches or breaks the lease damages the premises gives the landlord any other good cause to evict

The landlord must give the tenant a notice to quit before commencing an eviction proceeding. If the rent remains unpaid (or other problems remain unsolved), and the tenant remains after the expiration of the period provided in the notice to quit, the landlord can file a lawsuit. The landlord cannot remove you at the expiration of the notice period. Click Here for More Information About Landlord Eviction A lawsuit starts when the tenant is served with legal papers- usually a summons and complaint. A hearing is usually held shortly after (sometimes 2 weeks after the summons and complaint are served). At the eviction hearing, the tenants defenses can include: An error in the accounting of the rent Deducting rent is justifiable due to the condition of the premises. The tenant may argue that the landlord seeks to evict the tenant in retaliation for some action the tenant undertook, such as: Asking for repairs to the premises Complaining about housing discrimination Organizing and seeking support of other tenants against the landlord Reporting housing code violations or asking for code inspections

The landlord must not attempt to forcibly remove the tenants by changing the locks, removing the tenant's belongings, turning off utilities etc. This is against the law and in most states is considered a crime. Click Here for More Information About Landlord Eviction

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