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Updated about 20 hours ago on . Most recent reply
How will marriage affect my rentals
Hi all, it's been a minute since I posted here. I will be getting married in a couple of months. I live in California and I own three rentals free and clear. I am in a hard debate whether I should LLC my properties before I get married. The franchise fees here would be $800 per LLC per year. Translation, $2400 per year.
I currently just have insurance liability up to 1 million per property.
Since I will be getting married and as married, you are considered as one, I'm wondering if I should LLC them due to the new wife becoming also a new liability in my life.
For example, she causes a big car accident and ends up getting sued. Will they also include me in part of the lawsuit?
Another question is if I do not LLC before I get married and I decide to LLC after I get married will that be considered community property because at this moment before I get married it is considered separate property. I would love to get some input before it's too late. Thank you all in advance! 
Most Popular Reply
@Robert D. You should seek out and speak with a financial planner/estate attorney. Anything you own currently is not hers until you get married. When I got married I owned two properties (whoop whoop). My wife nothing but student loans and car debt. Together we bought a BRRRR deal, completed it, and got married soon after. It was a big test. Really established our finances and money goals. Money is the #1 killer of marriages. We have been married for 5 years and have since established a living trust and put all our assets into the trust. Any LLC we start in the future will be held in the trust. If nobody can see what's in a trust nobody will sue you.
You have three paid for properties. Leverage some equity and get into a deal with your finance. Get her interested in REI. That's what I was looking for when I got married because we're playing the long game! With our marriage and investing goals.
Worry more about your choice for a life partner and less about community property.
"The franchise fees here would be $800 per LLC per year" - Don't sweat it. Put them all under the same LLC. Get an umbrella policy for the LLC if you don't think you have enough insurance on the rentals. That's what we did.
Cheers.