A prenuptial agreement can feel like a strange thing to discuss when you are getting ready to marry. Most couples would rather talk about the wedding, a new home, or future plans than what happens if the marriage ends. Still, money is part of marriage. So are property, debt, businesses, and financial obligations.
A prenup gives you and your future spouse a chance to make some of those decisions before they become a source of conflict. It can be especially useful if either of you owns property, has significant debt, runs a business, expects an inheritance, or has children from a previous relationship.
A prenup can address much more than who keeps the house after a divorce. You can decide how certain property will be treated during the marriage and what happens to it if you separate. The agreement may address real estate, investment accounts, business interests, retirement assets, debts, future earnings, and property either of you already owns.
It can also address financial issues that may arise if one spouse dies. There are limits. You cannot use a prenup to take away a child’s right to support. California also places extra requirements on provisions involving spousal support. The goal is to put financial expectations in writing while both of you have time to think clearly.
California has rules about how a prenup must be prepared and signed. Timing is one of them. For agreements signed on or after January 1, 2020, California generally requires at least seven calendar days between when someone receives the final agreement and when they sign it.
That makes the week before the wedding a poor time to introduce a prenup. Financial disclosure matters too. Both people should have a fair picture of the other’s assets, income, and debts. If one person leaves out a business, investment account, or major debt, that can create problems later.
The agreement must also be voluntary. A prenup signed because someone felt pressured, threatened, or rushed may be challenged. Start the process early enough that both of you can ask questions and make changes without the wedding date hanging over the conversation.
Consider what each of you brings into the marriage. Maybe you bought a house years before meeting your fiancé. You may own part of a family business. Your future spouse might have substantial student loans or investments they want to keep separate.
Then think about what could happen after you marry. Will either of you put marital income toward a home owned by the other? What happens if one spouse helps grow a business that started before the marriage? How do you want future earnings or investments treated? These questions may feel overly detailed now. That detail is often the point.
A sentence that says each person keeps their own property may sound clear until years later, when separate and marital money have been mixed together. The agreement should address the situations most likely to come up in your life.
A prenup can run into trouble because of how it was handled before anyone signed it. Last-minute agreements are one problem. So is incomplete financial disclosure.
California law requires extra care with spousal support terms. In general, a person needs independent legal representation when signing an agreement that limits or waives future spousal support if that provision will later be enforced against them. A court can also refuse to enforce a support term if it is unconscionable when enforcement is requested.
A document may look official and still fail to address the property, finances, or legal rules that matter in your situation. The safer approach is to have the agreement prepared for the two people who will actually sign it.
A lawyer can help you work through questions that may not seem obvious at first. You may know you want to protect a business but have no idea how to handle future growth. You might want to keep a house separate while also planning to use joint income to pay the mortgage. Those details deserve more than a generic form.
Your attorney can review assets, debts, property records, retirement accounts, and other financial information before drafting or reviewing the agreement. Separate attorneys for each future spouse can also make it easier for both people to receive advice based on their own interests. The goal is to enter the marriage knowing what you agreed to and what the document actually says.
At the Law Offices of Bradley D. Bayan, we help clients in Redwood City and throughout San Mateo County with family law matters, including prenuptial agreements.
You may already know exactly what you want the agreement to cover. You may only know that you own property or have financial concerns you want addressed before the wedding.
We can review your situation and help you put those decisions into a written agreement that follows California law. Call the Law Offices of Bradley D. Bayan at our Redwood City office at (650) 364-3600 to schedule a consultation with a divorce attorney.
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