More and more couples are considering using a prenuptial agreement to protect their finances before getting married.
If it is your first marriage, you might want the comfort of knowing that you have a plan for how to handle finances if the marriage does not work out. Or perhaps you were married before, went through a difficult divorce that left you financially unstable and want to prevent that from happening again.
Whatever your situation, a prenuptial agreement is often a good idea. Prenuptial agreements are not just for the rich. Anyone interested in protecting their property and managing their financial expectations can benefit from a prenuptial agreement.
What a prenuptial agreement can cover
In addition to determining how to split marital assets, a prenuptial agreement can also address marital debt, spousal support or alimony.
A prenuptial agreement can also clarify estate planning intentions. This is often important for spouses with children from previous marriages who want to ensure their children’s inheritance remains protected.
If you own a business, a prenuptial agreement can protect your business interests. For example, you can agree that your business interest is not split with your spouse.
Since a prenuptial agreement sets clear financial expectations up front, it reduces the chance of future conflicts or disagreements about finances. A prenuptial agreement confirms that you and your spouse have a mutual understanding about your financial commitments to each other.
California prenuptial agreement requirements
If you decide a prenuptial agreement is right for your situation, make sure it is enforceable. For a prenuptial agreement to be enforceable in California, both spouses must give full financial disclosure and enter into the agreement voluntarily.
Both spouses should have a chance to consult with an independent attorney and have enough time to do so. At least seven days should generally pass between the receipt and signing of the agreement. If one spouse chooses not to consult with an attorney, they should sign a clear waiver documenting their decision.
You may be concerned that if you execute a prenuptial agreement you are stuck with the terms forever, even if your circumstances change. This is understandable since the financial situation you are in now is not likely to be the same many years from now.
Invalidating a prenuptial agreement
Rest assured that prenuptial agreements in California can be invalidated in certain circumstances. Prenuptial agreements are meant to be fair to both spouses.
If a prenuptial agreement is fundamentally unfair to one spouse, it could be invalidated. Prenuptial agreements that are initially fair might become fundamentally unfair to one spouse if something changes, such as the other spouse receiving a huge inheritance.
There are other potential reasons to invalidate a prenuptial agreement. If you are coerced into signing it or were not of sound mental capacity at the time of signing, the prenuptial agreement could be declared invalid. Keep these considerations in mind when you are making your decision on a prenuptial agreement.