California is a community property state, meaning that, unless you have a prenuptial agreement, one-half (50%) of all property acquired (and retained) by one spouse during the course of marriage will be transferred to the other spouse upon divorce. Here are ten things you should know about prenuptial agreements:
- A prenuptial agreement will first reconfirm that all property acquired before marriage (and after separation), such as previously owned business interests, real estate, retirement accounts, investment accounts, and savings accounts, are the separate property of that spouse and will not be transferred to the other spouse upon divorce.
- A prenuptial agreement will second state that any increase in the value of previously owned separate property assets or accounts will not be transferred to the other spouse upon divorce.
- A prenuptial agreement will next define how parties will have separate (non-commingled) bank accounts for separate income and expenses, and joint bank accounts for joint expenses, and how parties will have separate responsibilities for their premarital debts, such as student loans, credit cards, mortgages, taxes, business debts, prior child support, etc.
- A prenuptial agreement will then define whether or how much in monthly spousal support (alimony) that one spouse will have or not have to pay the other spouse upon divorce.
- A prenuptial agreement may also include a stipulation for future joint child custody & visitation arrangements, in advance of a divorce, when the parties are of clear mind.
- A prenuptial agreement is advisable if either party has significant assets or income coming into the marriage, or it is anticipated that either party will acquire substantial assets or income during marriage.
- A prenuptial agreement is also advisable to predetermine how finances and assets will be held during the marriage and/or upon a divorce.
- A prenuptial agreement will ensure that a party’s assets remain theirs if the marriage fails.
- A prenuptial agreement may provide that their assets go to their children, or other relatives or friends, in the event of death.
- A prenuptial agreement prevents a potential future divorce from becoming contentious and/or expensive.
Counts Law Firm | Family Law Attorneys in Los Angeles:
If you are considering a prenuptial agreement, it must be prepared by an attorney and both sides must have counsel at the time of signing in order for it to be valid. Don't hesitate to call Counts Law Firm. Emahn Counts is well-versed in Prenuptial Agreements along with other areas of Family Law. He will ensure adherence with the strict procedural elements required for the agreement to be successful if it is ever challenged in court. Public policy considerations and California state law demand that a prenuptial agreement be completed within a specific time period prior to the marriage.