Annulment vs. Divorce and its effect on Finances
Here is an interesting article found here on annulment vs. divorce and its effect on your finances.
Here are the highlights of the article:
Unlike divorce, which recognizes that a marriage has an official beginning and end, an annulment retroactively declares the marriage to be null and void. "When a couple gets an annulment, it's as if the marriage never existed to begin with," says Kristin D. Hofheimer, a divorce attorney in Virginia Beach, Va.
What that means for your finances is this: In an annulment, the courts do their best to restore the individuals to their original financial state. So, what money and property you brought into the marriage is what you should walk away with, including any debt you brought into the marriage. Joint assets and debt accumulated together during the marriage are typically divided equitably.
But qualifying for an annulment isn't a walk in the park, as certain grounds must be met in order for it to be granted.
Here are some of the more common reasons an annulment may be allowed:
•If fraud or concealment is involved, such as one party keeping important information from the other, such as a drug addiction or a felony.
•The refusal or inability of one party to consummate the marriage.
•The determination that the two parties are close relatives and are in an incestuous marriage.
•The determination that one or both parties were unable to consent to marriage because of a lack of understanding, such as the case of someone who is mentally ill.
While marriages of any length can be annulled, many states have time limits for filing based on when the grounds for annulment took place. For example, in Illinois, if you want to get an annulment because of fraud, you have 90 days to make the claim after you learn about the fraudulent event. In Minnesota, if you want an annulment because one party is unable to consummate the marriage, you must file the motion within one year.
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