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In this article, you will learn…

  • What a prenuptial agreement is
  • What a postnuptial agreement is
  • Who prenuptial and postnuptial agreements benefit in the state of California.

What Is A Prenuptial Agreement Under California State Law? What Are The Benefits?

A prenuptial agreement, also known as a premarital agreement in the state of California, is an agreement designed for the purposes of two people who are intending to get married.

A prenuptial agreement may benefit couples who have assets they obtained prior to marriage. It is a legal agreement about the disposition of these assets once they get married and in the event of a dissolution of marriage.

There are certain aspects of premarital agreements that can be invalidated at a later point, such as spousal support. In general, they are valid and enforceable in California as long as you comply with the strict laws involving:

  • Timing
  • Rights to counsel
  • Adequate disclosures of what the parties want to obtain through the prenuptial agreement

What Is A Postnuptial Agreement Under California State Law? What Are The Benefits?

What differentiates a prenuptial (premarital) agreement from a postnuptial agreement in the state of California is the timing. A prenuptial agreement is entered into before the parties are married, while a postnuptial agreement is entered into after the parties are married.

Both the prenuptial and postnuptial agreements are a determination of how assets involving the marriage are to be distributed in the event that there is a divorce.

Postnuptial agreements are valid in California as long as the parties comply with the strict rules that exist in California as to postnuptial agreements.

Are Prenuptial And Postnuptial Agreements Just For The Super Wealthy Or Are They Beneficial For Everyone?

It doesn’t matter if you have 500 assets or one asset, prenuptial and postnuptial agreements are for everyone. There are several scenarios where a prenuptial or postnuptial agreement could be beneficial, regardless of wealth.

If we have parties who are in their 50s that are looking to get married, they might have accrued assets or property interests prior to the marriage through various means. Any income from these assets could become community property if no agreement is in place. This would give the other party a potential claim to a portion of the equity of that asset in the event of a divorce.

You may also consider a prenuptial agreement in regard to your 401(K) or other retirement plans. You may have accrued these retirement assets prior to marriage and want to ensure they are protected in the event of a divorce. Your prenuptial agreement may set the determination that your retirement assets are your separate property, as opposed to now having some sort of community property interest that is acquired once there have been contributions to that asset during the marriage.

In this day and age, people are beginning to put their money towards several different investments, such as…

  • Bitcoin
  • Stocks
  • Other assets that appreciate over time

A lot of times, people don’t realize that the second that they incur a taxable gain from closing out a position like those listed above; it also then results in a potential claim for property assets based upon that income.

With the cost of living in California, people are looking for new ways to supplement their income. What they sometimes fail to realize is that what can start off as a small bit of money can appreciate over time. Things like stock and bitcoin can have additional complications once we start dealing with separation through a divorce.

Having the difficult conversation about these assets in discussing a prenuptial or postnuptial agreement could save couples a lot of grief during a divorce that is already stressful.

For more information on Prenuptial & Postnuptial Agreements In CA, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (909) 804-9059 today.

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