Lancaster prenuptial agreement lawyers
However, there are legal limitations on what should be included in a prenuptial agreement. If you fail to adhere to all legal requirements in California when drafting the agreement, you may end up having an unenforceable document. Examples of such situations include a verbal contract, if one of the parties is forced to sign, and unfair terms.
Another important fact you need to know about the process is that the agreement is only enforceable after getting married. A couple is required to provide proof that they have finalized their marriage. The law allows you to change the terms of your premarital agreement after your wedding.
For this to happen, both parties must consent and follow the required steps to modify the original contract. If you intend to change the terms, you need to hire a professional legal practitioner to ensure you abide by the law. A divorce in California can leave one of the partners in a difficult financial situation without a prenuptial agreement. The following are some of the reasons why you should get a contract:
Avoid the Dilution of Control of Your Wealth
The primary objective here is to ensure the effective division of inherited funds. According to some experts, this can be done by creating trust agreements. No trust can be relied upon when it comes to safeguarding your inheritance. In the event of death, the patterns of previous distributions will be presumed to continue when determining spousal support.
Inherited interest in a family enterprise doesn’t always retain its separate property character if beneficiaries are involved in the management of the business but don’t receive fair remuneration for their contributions. A premarital contract is an ideal solution for such situations.
It Helps to Maintain the Control of Specific Separate Assets
Separate assets that may come after marriage can in different forms, including investment property, portfolios, or a residential building. Unspoken assumptions can cause a lot of confusion when it comes to controlling separate property. When you have a premarital agreement, such ambiguities will not exist.
The contracts will also help to avoid expensive lawsuits. For example, if a partner offers their professional skills to manage a business owned by the other partner, they may expect to become co-owners after getting married. The owner may view their other half as having have given some help without expecting to become part of the company. An agreement will help to prevent miscommunications and enable you to solve such issues.
Safeguard Your Assets in the Event of Remarriage
If you choose to get remarried after a divorce, you will experience new challenges when figuring out the best ways of protecting your family and property. When you remarry, you will experience the challenges of combining different lives and also means the possibility of things such as having kids from other relationships and child support.
A contract in such cases should address concerns about your obligations from your previous marriage. It should also cover the distribution of assets if one of the partners dies. This helps to ensure that children get their inheritance.
Getting Ready for the Possibility of Divorce
No one would want to think about the possibility of divorce when getting married. However, you cannot ignore the fact that a significant percentage of marriages end in divorce. By having a difficult conversation with your beloved before you finalize the marriage, you encourage open and honest discussions and prepare yourself for a difficult conversation later on.
When you acknowledge that your marriage could end in divorce, that’s being emotionally realistic. A premarital agreement offers you an opportunity to open up about your financial status and needs before the wedding.
Protecting Family-Owned businesses
If a spouse has an ownership stake or works in a family-owned enterprise, and receives some income from it, this may raise issues after a divorce when trying to divide assets. If there is no prenuptial agreement, a former spouse may claim and end up having some ownership stake and receive monetary benefits from the business.
Some companies that operate in the same way require new family members to have a premarital contract. This helps to protect the interests of family-owned businesses in the long run.
It Offers Creditor Protection
One of the partners may be running a highly-risky business or have substantial debt balances before marriage. These are some of the reasons why an agreement can be helpful in the event of a divorce.
The document will specify how much money to allocate for conservative investments and high-risk businesses. This is important in California as lenders of any of the parties can reach community property assets. The assets owned before marriage are also included.