Prenup Q&A
Discussing a prenuptial agreement may seem in contrast with the excitement and the romanticism that surrounds the planning for a marriage.
On the other end, these agreements have become more commonplace it is much easier to broach this important subject. A Prenup is not about trust, but about be prepared for life events. Should you enter into a prenuptial agreement? Do you even need one?
A prenuptial agreement allows both spouses to separate their property and protect it in the event that they choose to end their relationship. They also allow both parties to distinguish what is agreed upon as being marital property and what is community property. There are several benefits resulting from this process:
- You will avoid major conflicts during a possible divorce (and spare pain to all the parties involved, including children who won’t have to assist to infinite and fierce fights among the parents).
- Being able to avoid lengthy court proceedings (which reduces the expense of the divorce).
- Assigning debt to the appropriate spouse (this can help you avoid debt liability and a destroyed credit report with the concurrent inability to make major purchases or borrow money at a reasonable rate).
- Discussions surrounding the prenuptial agreement and its provisions often help couples get on the same page before they walk down the aisle and commit their lives to one another. Even if you do not agree on a prenuptial agreement, discussing the issues involved in a prenup can benefit your relationship.
Many couples do not have the answers to one or more of the issues which will be brought up in this type of agreement. If the timing is not right, a family law attorney may be able to help you with a “postnup” after you are married.
To speak with one of our Prenuptial Agreement attorneys today, please call (619) 793-4827.
San Diego Biz Law we can help you, offering complimentary initial consultations to those who are interested in a prenuptial agreement yet may not be sure if it is right for them. Some preliminary aspects that you may want to take into consideration are whether:
- You own real estate
- You have over $50,000 in assets
- You own part of a businesses
- You earn more than $100,000 annually
- You have employment benefits (i.e. profit sharing or stock options)
The expert attorneys at San Diego Biz Law will walk through the prenuptial agreement process with you and will provide you with the guidance and clarity you need to ensure that your rights are protected.
To speak with one of our Prenuptial Agreement attorneys today, please call (619) 793-4827.
- It allows you and your fiancée/ fiancé to gain control of finances, instead of letting them be governed by a complex set of laws that will cost you possibly hundreds of thousands of dollars to unravel. In California, these laws are the California Family Code and Probate Code. And remember, prenups can be drafted to protect both spouses, not just a wealthy spouse.
- It will improve the communication amongst the partners. The process of drafting and negotiating a prenuptial agreement will, in fact, strengthen your relationship. The process requires full disclosure of your financial situation and involves an open and honest discussion about how you will handle your money and plan your future. Full disclosure (a great display of trust) on one hand, and open discussion to know each other better on the other hand. (‘What do you mean, you don’t do dishes?’)”. Also, prenups prepare you for marriage. Money is an argument that you will definitely, and often, face with your partner. Why not do it now and save potential arguments and trouble later on? One of the biggest challenges that couples face is those that are based on assumptions, like the one about dishes above. There are no less than 50 assumptions that people bring to relationships, and yet, as important as they are, when is the last time you heard of a couple discussing them before tying the knot?
- Prenups provide peace of mind. No one plans on their house burning down, ending up in a nursing home, or suffering a disability, but they still take out insurance. As Dr. Ruth stated: “We live in such a litigious society. Nobody knows what life brings. Hopefully, we will never need it. What’s the big deal? Let’s do it …”
Postnuptial agreements are very similar to prenuptial agreements, but as the title reflects, are created and signed after the marriage is official.
Much like the prenuptial agreement, postnuptial agreements require the following components to be true in order to be enforced, including that the contract is:
- In writing
- Executed voluntarily
- Created with full and/or fair disclosure at the time of execution
- Signed by both parties
Much like its premarital counterpart, spouses may not include child custody or child support matters within the document, as neither is enforceable through a postnuptial agreement.
To speak with one of our Prenuptial Agreement attorneys today, please call (619) 793-4827