Living Rich on a Budget: Understanding Common Law Marriage in Pennsylvania

Living “rich” on a budget is the name of the game of a savvy socialite. Although you might live as well as the trust-fund kid down the street, you don’t need to drop thousands to do it. Checking out some great sites we’ve discovered around the internet, The Budget Socialite noted on common law marriages in Pennsylvania and how the subject impacts on budgets.

What is common law marriage and what advantage is it these days? A common law marriage is a relationship permitted or recognized by law where a couple has been living together similar to marriage, according to a state. This state will recognize a common law marriage, with all the benefits and drawbacks of a legal, licensed marriage.

Is there common law marriage in Pennsylvania? Yes… and no, according to the 1969 Pennsylvania Act 155. But first we need to go back a bit into Pennsylvania’s history to explain.

Common law marriages were once recognized in Pennsylvania if one spouse lived at a different home address. This was the next best thing to a divorce. But Common Crier and Spiritualist Reverend Thomas Richards of southwestern Pennsylvania was changing the game. He performed over 800 common law marriages and, if he didn’t like a couple, refused to perform the union.

This was well known to police and fire insurance companies who did not pay claims on homes that burned (or blew up) and, according to records, Reverend Richards “ghost wrote” direct mail campaigns for those who operated in the same manner.

The acting State Attorney General Raymond Shafer had had enough of the problem, and “sunsetted” common law marriages in Pennsylvania. Though Pennsylvania is not the only state annulling common law marriage before 1970, it had one of the largest problems with the practice. A recently divorced or widowed person who remarried without waiting one year would be well on their way to a state prison sentence of five to ten years for bigamy.

Partially to cut out the bigamy problem and partially to give people who believed themselves married (either in the eyes of God or whatever) thanks to Reverend Richards the right to collect a pension or make a will, Commonwealth of Pennsylvania vs. Brian MacKinlay legalized common law marriages in 1967.

Pennsylvania’s 1969 Act 155 only recognizes common law marriages concluded before 1 January 2005. Presently, a common law marriage requires the presence of the Commonwealth law firm that administers the estate once one of the parties dies. It also requires the prior approval of a judge.

How does a common law marriage affect your budget? Here’s the skinny: If you have been living “rich” it could be “whose money is it?” in court. In that case, a divorce can become a painful and financially expensive procedure unless you both agree to an uncontested divorce.

You both can draft a financial agreement (separation) that divides your assets and liabilities. You need a lawyer, of course, to ensure you both land on the right side of the law.

Divorce by common law marriage is completely different from other divorces. You must file a complaint, make discovery, and then go to court to ask the judge to accept the separation agreement. A judge might modify the agreement before or during the hearing.

If you didn’t change your federal tax withholding, you might have to pay back taxes for the year you divorced.

If you die before the divorce is final, your spouse (former or current) inherits everything unless you have a will naming another beneficiary. Be careful who you name in the will as your ex-spouse could contest the will.

The downsides of common law marriage are obvious, but did you know you could save money by creating a common law relationship? If you cannot afford to get married before the government, here’s two ways a comprehensive approach to common law marriage adds to your riches.

Understanding the Role of a Legal Custodian

Have you ever heard of a legal custodian? The suggestion to find out what that means is not meant to drag you into a law school class, but is instead equated to the art of budget living. Both concepts are mindset-specific; by making the choice to educate yourself regarding the terms and tools involved with a legal custodian, you equip yourself to handle real world finances. When you know something, you wield power in the form of knowledge.

Custodianship is basically akin to guardianship, although it’s a little more relaxed in terms of permanently being in place. Custodianship is required for most times of inheritance for minors or those who are not financially savvy adults. The legal custodian is responsible for handling the money that is left in an account for someone who cannot handle funds. This type of account is normally referred to as a uniform transfers to minors account. Account funds should only be used to benefit the minor. They can only be used with a certain level of discretion, unlike what you might see in the wicked stepsister stories.

Custodianship is a little bit like having a budgeting system for your money. You choose where the money goes and what the money is used for. If you need to make a decision on the amount of money that is used for something, then you have to delve into the paperwork to figure out how much money belongs where. Essentially, being a custodian means having the records of the account and the authority to decide what is done with the funds. It entails making choices for someone else’s money.

You have the option to be your own custodian. It’s kind of like being your own banker in that respect. You can use budget lines to dictate where your money goes. You can even keep it all under a safe in your house, and it can be broken down into categories, such as groceries, Christmas, clothing, etc. This is how budgeting works. You control where your money goes and how much of it is used for a particular thing. The difference being, of course, that the bank is not going to allow you to pull that money out for reasons it has not given you access to the cash. If you have a bill that needs to be paid, you can’t just pull the money out of the bank account and onto your credit card to pay for the bill. Instead, you have to wait for the bank to say, ‘yes you can use that money this way,’ or you have to find another way to pay that bill. Get it?

You have the right to know what is going on with your money, and you also have the right to decide how your money will be used. When you are a custodian, you have the right to determine what funds to use and when they can be used. The law gives you some rights, such as:

• You can find out more about what rights you have under a comprehensive legal custodian definition and how long they may last by consulting primary resources for legal advice, for example.

Understanding what legal duties you have as a custodian for someone allows you to avoid a few problems when it comes to both financial and real life. You know what you can do and what the person under your care can do regarding their finances. You know what the bank can do and when it can and cannot share information. In return, by understanding these legal rights and limitations better, you are able to make better choices in regards to your money.

Thankfully, there are plenty of resources online to help you learn how to organize your financial paperwork on a budget. The main point is to keep things organized by time, such as daily, monthly, quarterly, annually, and even by event. I have listed a few online resources below. The idea is not to overwhelm you with a long list of links, but merely to provide one solid resource for you to check out and copy the process.

Legal assistance can be necessary for various reasons, and often the financial advice one can get goes right along with it. There are lawyers that offer free consultations, and this is one of the ways that you can get the proper legal advice for your money matters. There are also other resources you can consult, including your local courthouse as well as websites that include sources such as information about a legal custodian, banking, finances, and other important money management topics.

Knowing how to make good choices is the most important part of getting your finances organized in your own life and your finances and debts overseen for a child or another adult under your care. Take the time to research the details of what you need to do for your money and your legal obligations as a custodian.

Surrogacy is generally known as the act of helping a couple to become parents who are unable to have a baby. Many countries are doing the best to make their citizens capable of being parents through the use of surrogates, however some countries still consider it illegal and don’t make any arrangements to help couples who need surrogate mothers for them to become parents. While the process can be a life changing feat in itself to the parents and the surrogate who is going to carry the baby, it most definitely takes a wealth on monetarily. How can helping a couple in becoming parents go hand in hand with being on a budget? First it is important to have an overview of what the journey entails.

The process of being a surrogate and welcoming the couple’s baby into life is the same for many. Inviting the couple who needs a surrogate can be a long process and a very expensive one. While some agencies are not needed to apply, some regulations in certain states may require a third party agency to be the central coordinator of the surrogate and the parent. There are a few steps that walk you through the ins and outs of the journey. The surrogate needs to open their application with the correct documentation, find a match, have a screening, sign a medical release form, talk about expectations, screen for disease during fertility treatments, finalize the surrogacy agreement format, insemination and baby on board!

This is such an amazing experience that just like any other person looking to have a baby, learning the ropes are quite costly. Not only is there money involved in the meal prep, but also in their daily nutritional regime. The journey is not an easy one. It is very much expensive and requires financial preparations. The surrogate is continuously having tests to monitor her health, it is all about balance. From vitamins, to maintaining high nutritional consumption, grocery shopping can be a very expensive addition for the surrogate.

And then there is the legal side of the journey. Having the correct contract between the surrogate and parents is a must. For any parent looking into using a surrogate, they will need to have the correct legal representation for this venture or they can easily be taken advantage of. A common contract for a surrogacy agreement includes the following:

• Signature of approval
• Defining the agreement
• Medical fees
• Surrogate compensation
• Liability protection
• Level of confidentiality
• Essential clauses
• Termination clauses
• Laws and jurisdiction

Having a lawyer you can trust is always a plus. Many people think that they can simply use the surrogacy agreement format that has been in the public domain, however that must be thoroughly approved by the attorney who is going to write the contract. When looking for legal representation, consider asking people around you who have previously had a similar experience with a surrogate or look online for the best affordable lawyer. Having a budget in mind while going through the processes is critical as you don’t want to be spending money if you don’t have to, especially when there is a free option available for you. Many people have been through the surrogacy process and were able to save money through using a free surrogate agreement format, with the help of a lawyer who was well versed in the topic. This enables you to have money for any additional treatments that might be required after you’re in the pink of health.

Making any payment structure work suit for you is acceptable during this process. Helping someone become a parent is a wonderful experience, however the process isn’t cheap. It takes a lot of emotional strength and mental stamina to be able to walk through the process hand in hand with your very own family. Make it work and you will have your own little bundle of joy to enjoy!

For more information on surrogacy laws and regulations, you can visit Child Welfare Information Gateway.