While many people believe prenuptial agreements are only for the wealthy and famous, the truth is that an increasing number of couples are signing these agreements. Keep reading to learn more about this important topic.
What is a Prenuptial Agreement?
A prenuptial agreement, informally known as a “prenup,” is a written document signed by two individuals about to get married.
Typically, a prenuptial agreement outlines the property each person owns and establishes what would happen to that property if the marriage were to end.
It’s understandable if you feel hesitant to discuss a prenuptial agreement with your future spouse, as doing so can be uncomfortable. However, there are valid reasons for doing it.
Statistics show that financial issues are one of the leading causes of divorce. Discussing your financial needs and expectations with your partner can help prevent future misunderstandings.
Additionally, if a person is entering into a second or third marriage, a prenuptial agreement is a good way to provide financial protection for children from previous marriages.
Prenuptial Agreements in California
Prenuptial agreements in California must comply with the Uniform Premarital Agreement Act (UPAA), a multi-state law ensuring consistency in these types of agreements.
According to the UPAA, a prenuptial agreement takes effect after marriage and can address rights and obligations related to current and future property. However, a prenuptial agreement must not adversely affect children’s rights to receive support.
Without a prenuptial agreement, marital property is divided according to the principle known as “community property.” This means that all assets, as well as all debts, are divided equally between spouses at the time of divorce.
When creating a prenuptial agreement, it’s advisable for both parties to be represented by their own attorneys. If you have any questions about prenuptial agreements, feel free to reach out to the Rivas Law Group. We are here to provide the expert guidance you deserve.
