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Wedding planning brings a flurry of activity. If you are considering getting married in California, you might be thinking of establishing a prenuptial agreement as part of your wedding plans. As a community property state, where most assets are equally divided in the event of a divorce, a prenuptial agreement can be a wise decision. You may be wondering: what can a prenuptial agreement include in California?
Prenuptial agreements are a crucial consideration when you are combining households, helping to protect assets and secure individually owned property before you ever say, “I do.” The laws are complex, and there are strict requirements that must be met for the document to be legally binding. Hire a prenuptial agreement lawyer for experienced legal counsel so you can be confident that your family’s interests are protected.
What Is a Prenuptial Agreement?
A recent poll shows that 15% of Americans who are married or engaged have signed prenuptial agreements. A prenuptial agreement is a legally binding contract between two people preparing to marry. While many people assume that a prenup is only necessary for wealthy couples, this is a common misconception.
Over 50% of Americans say they would be willing to sign a prenuptial agreement, which outlines financial responsibilities and expectations in the event of a divorce or legal separation, including:
- Spousal support terms
- Protects the property each spouse brings into the marriage and designates how property is to be divided in the event of a divorce
- Defines financial responsibilities
By California law, these important documents must be in writing and signed by both parties without coercion. It is advisable to create these documents with the guidance of a qualified prenuptial agreement lawyer, who can clearly explain the terms of the agreement and the responsibilities each party must uphold.
Terms and Assets Usually Included in Prenuptial Agreements
A prenuptial agreement is negotiated by both parties, in advance of the wedding, and outlines financial considerations such as customizing financial and property arrangements so that certain assets stay outside the bounds of the marriage and remain individual property.
Businesses owned before marriage, vehicles, real estate, and other valuable property can all be designated as individual property in a prenuptial agreement. Every person brings possessions to a marriage that can and should be negotiated before taking vows. Inheritances are another asset that many people wish to protect, in order to keep wealth in the family.
Debt allocation clauses are also common, specifying who is responsible for certain debts incurred–whether before or during the marriage. Spousal support clauses can also be included, although these must be carefully crafted with legal advice, as the courts scrutinize these clauses to ensure they are fair in the event of a divorce.
Prohibited Clauses in Prenuptial Agreements
Prenuptial agreements cannot include clauses addressing child support amounts, as the courts determine these amounts according to the child’s needs and best interests at the time of separation or divorce.
Prenuptial agreements also cannot include provisions for personal, relational matters, such as who handles household chores, religious matters, and personal behavior. These are matters of personal freedom and are not eligible for legal oversight.
Misconceptions About Prenuptial Agreements
There are several misconceptions about prenuptial agreements, including the belief that they are only for the wealthy. Another common misconception is that these agreements demonstrate a lack of trust in the marriage’s future and its long-term viability as a partnership. In fact, the opposite is true–clear communication about finances is a sign of a healthy marriage.
Marriage is a legal designation, even when entered into through love, and conversations about money are important. A properly executed prenuptial agreement gives both partners a clear picture of their financial standing when entering their marriage, and helps them plan for the years to come, especially when they begin the estate planning process. Prenuptial agreements are a responsible choice that demonstrates confidence and transparency, engendering trust.
FAQs
What Cannot Be Included in a Prenuptial Agreement?
What cannot be included in a prenuptial agreement includes: child custody arrangements, child support amounts, childbearing requirements, illegal acts, and non-financial requests, such as frequency of sexual relations, visits from family, etc. Prenuptial agreements are financial contracts that only address assets with real monetary value that can be assessed by the courts in the event of a divorce or separation.
What Should I Include in a Prenup in California?
If you own a business or real estate before your marriage, it’s important to consider whether or not you wish to commingle assets or make arrangements in your prenuptial agreement to avoid the possibility of division if you divorce. While most people don’t like to consider the fact that they may divorce or separate, statistics show that up to 1.6% of marriages every year in the US end in divorce.
What Is the 7-day Rule for Prenups in California?
The 7-day rule mandates that both parties must have at least 7 days to review the final draft of the prenup before signing it. This waiting period exists to ensure that both parties have adequate time to review the agreement in its entirety and ask any clarifying questions before signing. This helps to eliminate the possibility of coercion and protects informed consent.
What Voids a Prenup in California?
A prenup can be voided for a variety of reasons in California, including evidence of coercion, inadequate grace period for review (7-day rule was not observed), failed disclosure of assets, unfair terms, and lack of proper documentation, such as notarization and signatory duties of both parties are not present on the final document.
Have Questions About California Prenups? Hire a Prenuptial Agreement Lawyer
At Carroll Law Office, we’ve been serving the citizens of Mendocino, Santa Rosa, and the surrounding areas for years, addressing all of your family law needs. We’re here to answer all of your questions and concerns around prenups and the laws governing them. There’s no question too simple or complex for us to address. Our client-first, dedicated team can give you the peace of mind you need before your wedding. Contact us today to schedule your consultation.
