Asset Protection for Same-Sex Spouses

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Asset Protection for Same-Sex Couples in North Carolina

The journey to marriage equality was long and hard-fought. Now that it is the law of the land, same-sex couples in North Carolina have access to the same powerful legal and asset protection tools as all other married couples. While these rights are now universal, for many in the community, the need to proactively use them feels especially urgent. Taking deliberate steps to legally and financially intertwine your lives is a powerful act of empowerment that protects your family from any future uncertainty.

The Strongest Form of Property Ownership: Tenants by the Entirety

One of the most significant benefits available exclusively to married couples in North Carolina is the ability to own property as Tenants by the Entirety. When property is titled this way, it is legally owned by the marital unit, not by the individual spouses. This creates a powerful shield against creditors. If a creditor has a judgment against only one spouse, they generally cannot seize property owned as Tenants by the Entirety to satisfy that debt. Upon the death of one spouse, the property automatically passes to the surviving spouse outside of the probate process.

Key Tax and Retirement Benefits

Marriage profoundly impacts how couples can plan for taxes and retirement. Key advantages include:

  • Unlimited Marital Deduction: Spouses can transfer unlimited assets to each other during their lifetime (gifts) or at death (inheritance) without incurring federal gift or estate taxes.
  • Social Security Benefits: A spouse may be able to claim a higher Social Security benefit based on their partner’s work record. Surviving spouses are also entitled to survivor benefits, which can be crucial for financial stability.
  • Retirement Accounts: Surviving spouses have special rights, such as the ability to roll over an inherited IRA or 401(k) into their own, allowing the funds to continue growing tax-deferred.

Securing Your Partnership with Marital Agreements

For many couples, particularly those with significant individual assets or children from a previous relationship, a marital agreement is a wise planning tool. A pre-nuptial agreement (before marriage) or a post-nuptial agreement (after marriage) is a contract that establishes how property will be handled in the event of divorce or death, providing clarity and ensuring both partners’ financial interests are secure.

Why Proactive Planning is Essential

A marriage certificate provides legal recognition, but true protection comes from thoughtfully integrating these rights into your life. By updating property deeds, beneficiary designations, and other legal documents, you create a clear and legally binding reflection of your partnership. This removes all ambiguity for family members and financial institutions and solidifies the legacy you are building together. Taking these steps is the best way to ensure your family is protected, which is the ultimate goal of creating a comprehensive plan for your estate. Call our office at (919) 256-7000 to schedule a consultation.