Whats the news today-
Prenuptial agreements aren’t discussed nearly as much as they should be. The decision to form one benefits both couples, and it may help to establish the groundwork for key discussions concerning marital property and economics. Continue reading our blog post to discover about the significant assets that a prenuptial agreement may cover.
In California, do I need a prenuptial agreement?
Many couples are concerned that drafting a prenup indicates a lack of faith in their marriage’s foundation. The advantages of having a prenuptial agreement in place, on the other hand, far outweigh these concerns, as they can help couples have essential financial conversations and build a financial buffer for the future. Even though only one out of every ten couples enters into a prenuptial or premarital agreement, they can offer couples with piece of mind and are intended to safeguard both spouses.
Is spousal support taken into account?
Individuals can waive or limit spousal support under California law as long as the provision is not judged unreasonably unreasonable or unjust. Consider a prenuptial agreement that expressly forbids spousal support and in which one spouse has significantly more assets and income than the other. If that spouse tries to enforce the spousal support waiver after a lengthy marriage and the clause would leave the other spouse homeless, the judge may rethink upholding that part of the agreement.
Note that if there is a considerable gap in the amount of wealth between the two spouses, a judge may instead limit the amount and period of spousal maintenance instead of fully waiving it. The amount and duration will be determined by the parties’ income and the length of their marriage.
Separate Property vs Community Property
Any property obtained during the marriage that is not a gift or an inheritance is considered community property. In the absence of a prenuptial agreement, California community property law divides all community property equally upon divorce. Be aware that, with some exceptions, it doesn’t matter if the property is in one party’s name; if it was obtained during the marriage, it is deemed communal property. It’s important to remember that wages earned during a marriage are considered shared property. If a couple marries without a prenup and earns $1 million during their marriage, the entire amount becomes community property, meaning each spouse owns half of the property and everything bought with it.
Separate property is defined as property that was owned before to the marriage or was received as a gift or inheritance. Separate property belongs solely to the spouse who obtained it and is not subject to the above-mentioned 50/50 community property division rule.
If any efforts were taken during the marriage to develop, enhance, or add to the separate property, a community property interest in that separate property could be created. A prenuptial agreement could be advantageous in this circumstance, as it could demonstrate that the other spouse never gets a common interest in separate property.
In the absence of a prenuptial agreement, forensic accountants are sometimes called in to track down purchase dates, purchase prices, contributions, and value increases or declines over time. Accounting and legal fees in high-asset cases can run into the hundreds of thousands of dollars, if not millions of dollars. As a result, creating a prenuptial agreement to address a potentially high-risk and lengthy financial difficulty is in an individual’s best interests.
A prenuptial agreement can govern the treatment of individual and community property assets and obligations. A prenuptial agreement can ensure that all income, assets, and debts gained or incurred remain separate property in the case of a financially independent couple with their own resources. On the other side, a couple may agree that all property acquired during the marriage will be community property, but that specific assets brought into the marriage, such as family companies or finances, will be kept separate. Every couple’s situation is unique, therefore it’s critical to address any unique circumstances that may develop during or after the marriage while creating a prenuptial agreement.
Prenuptial Agreements’ Limitations
There is a significant limit to what a prenuptial agreement may accomplish. Prenuptial agreements in California are unable to regulate child custody or child support. These are areas where the court’s authority is delegated depending on what is in the best interests of the kid and the California child support standards. Because child support is considered a kid’s right, not a parent’s, parents cannot negotiate away a child’s right to support in a prenuptial agreement in California.
Seek the help of a California family lawyer right now.
If you are planning to marry or have already married, you might consider drafting a prenuptial agreement. The advantages of doing so, such as property and financial assets, that we’ve mentioned in this article, are significant for going forward in or after a marriage. Speak with the family lawyers at Spodek Law Group if you have questions about drafting a prenuptial agreement or want to discuss your agreement further with a legal professional.
Allow our firm to assist you! Make an appointment with Spodek Law Group today for a free consultation.
Spodek Law Group have offered me excellent support and advice thru a very difficult time. I feel I've dealt with someone who truly cares and wants the best outcome for you and yours. I'm extremely grateful for all the help Spodek Law Group has offered me. I can't recommend them enough.
Spodek Law Group was incredibly professional and has given me the best advice I could wish for. They had been helpful and empathetic to my stressful situation. Would highly recommend Spodek Law Group to anyone I meet.
Best service I ever had. Todd is absolutely class personified. You are in the safest hands with spodek. They have their clients interest in mind.
Our Los Angeles divorce lawyers provide superior service, and excellent results.
555 W 5th St 35th floor, Los Angeles, CA 90013
35-37 36th St, 2nd Floor Astoria, NY 11106
85 Broad St 30th Floor, New York, NY 10004
195 Montague St., 14th Floor, Brooklyn, NY 11201