If you are considering selling or buying real estate, or getting a divorce, drafting a Will or even forming a corporation, you will find advice at just about every stop you make. Co-workers may have said “You don’t need to hire an attorney. You can do it yourself.” Let me caution you to think very hard before you take any of these steps without an attorney. Many problems with a divorce, a Will or the formation of your business do not arise for many years and can make it harder, if not impossible to correct.
Recently, a client came in for assistance because they had sold property to another person by verbal agreement. In Texas, the transfer of property must be by a written agreement and the description of the property must allow the property to be located on the ground. My client’s verbal agreement was not valid, worse yet they tried to type something up on their own later that the buyer used to create a false document. This created a bigger problem that will require a lawsuit to resolve.
A divorce is not something you want to tackle without competent legal advice. You will find a plethora of do-it-yourself divorce kits and a whole host of do-it-yourself forms available on the internet. The problem is that many of these forms are too general, not Texas specific, incomplete, contain unnecessary clauses, or they are just wrong.
You will find that most judges do not like to handle do-it-yourself divorces. Despite what you might think, this is not because they are out to make attorneys more money or because they are mean and hateful. It is because judges know all too well the many pitfalls involved in divorce matters. They are trying to help the do-it-yourselfers, and themselves, from future headaches and problems.
Legalzoom advertises itself as a cheaper alternative to an attorney. Unfortunately, many people are lured by this promise of lower cost and do not seek the advice of a trained professional. They believe the document created by LegalZoom will be just as effective as one created by an attorney.
I have reviewed many software programs and took a spin on LegalZoom. While they look state specific, had I not been a Texas attorney who focuses on estate planning, I might have trusted that the site was providing me with accurate and current information. Just a few glaring mistakes I found were:
LegalZoom’s advice with regards to Oral Wills. LegalZoom would have you believe they are valid in Texas. However, in September 2007, Texas repealed Sections 64 and 65 of the Probate Code, which authorized oral Wills. In fact, under current Texas Law, oral Wills are ONLY valid if made before September 1, 2007 and in VERY limited circumstances.
Another mistake I found was with regard to providing for pets. According to LegalZoom, Texas Law does not have provisions for taking care of your pets. However, Section 112.037 of the Texas Property Code, enacted in January, 2006, does authorize pet trusts.
Almost every attorney I know who works with the formation of business entities has spent hours correcting DIY business formations. Here is just a list of some of what we fix:
– Selecting the wrong entity
– Failing to complete all steps of formation
– Not correctly obtaining an EIN
– Picking a name that violates a third party’s trademark
– Failing to have a buy out agreement
– Failure to hold the Organizational Meeting or Annual Meetings
Without exception, all of these DIY providers have a disclaimer stating they are not acting as your attorney and their information should not be used as a substitute for the advice of an attorney.
If you are considering are selling or buying real estate, seeking a divorce, formation of a business entity or preparation of a Will, seek the assistance of an attorney. They can best help you negotiate the minefield of problems that could arise later and the judge or your family will be most appreciative.