Premarital (Prenuptial) Agreement
Domestic agreements can be important tools to use to protect yourself and your assets going into a marriage. They offer transparency, which is good place upon which to start and build a marriage.
A family law attorney can help you understand whether a prenuptial or postnuptial agreement is right for you.
While many people can benefit from the use of a prenuptial agreement, it can be particuarly important for people in the following situations:
Business Owners. If you own a business, it is a good idea to inquire about a prenuptial agreement. This helps protect the business in case of divorce.
Asset & Wealth Protection. If you own significant wealth, a prenuptial agreement is a good idea to keep those assets safe in the event of a divorce.
Couples Who Want to Clarify Expectations. If a couple wants to clarify their financial expectations during marriage, a prenuptial agreement can help to avoid misunderstandings or conflicts.
Children and Second Marriages. If you have children from a previous relationship, a prenuptial agreement can assist in protecting the inheritance of those children.
Couples with Unequal Assets. If one spouse has significantly more assets or income than the other, a prenuptial agreement can help potect those assets or income in the event of a divorce.
These agreements aren't just for the wealthy. They can provide needed safety to people from all walks of life.
A Premarital Agreement is an agreement between future spouses that is made in contemplation of marriage and is made effective upon marriage. A Premarital Agreement is typically used to change property rights that would otherwise accumulate under California community property during marriage. Property can be an interest, present or future, legal or equitable, vested or contingent, in real or personal property, including income and earnings. Therefore, the parties can create their own system for characterizing marital property and thereby avoid complex apportionment problems that could arise under the community property system should the parties ever separate.
A Premarital Agreement can alter the rules by which a community interest would be created in a spouse's separate property. For example, if you own a home pre-marriage and you decide to keep it in your name alone during marriage, a community interest will nevertheless develop during the marriage under the default California community property laws if community funds (meaning any funds you earn after marriage) are used to pay the mortgage principal or any improvements to the property. A Premarital Agreement can eradicate the community property interest that would otherwise result from such payments.
A Premarital Agreement also allows parties to provide certain provisions in the event of death. Parties generally feel differently about economic provisions for the other spouse in the event of death than in the event of dissolution. Couples who have children from previous marriages are usually especially concerned with estate planning and assuring that property is set aside for the children from the prior marriage that might otherwise default to a spouse upon their death.
While you may be tempted to draft your own premarital agreement before getting married it is wise to speak with an attorney regarding how these agreements work, including what you can and cannot address. Courts have a tendency to look for reasons to find these agreements unenforceable, so the assistance of an attorney is very necessary to ensure your prenuptial agreement is valid and upheld in case of divorce.