Prenuptial Agreements Can Be Valuable for Regular People Not Just Wealthy People

Prenuptial Agreements Can Be Invaluable for Everyone, Not Just Wealthy People

Prenuptial agreements are empowering documents. Think about it, you already have a prenuptial agreement. It was written by the government. Why not come to an agreement about finances that suits you and your partner?

How to Approach Discussing Prenuptial Agreements with Your Partner: Discussing a prenuptial agreement may seem awkward. The way to make it less awkward is to  approach it with the correct mindset.

Are you trying to hoodwink your partner? No.

Do you want to take advantage of them? Get the better of the bargain?  Of course not.

You are thinking about a prenuptial  agreement as a practical step for managing your financial future together.

Having this conversation about your respective goals and desires with respect to finances will improve your relationship even if you elect not to have a prenup; it will not hurt it. Respect each other’s feelings and thoughts. Have open conversations. Couples who handle this topic with care and understanding are better off than those who do not.

Prenups are tools that provide clarity. Of course with a prenuptial agreement you ensure that should your relationship end ,you and your partner decide the financial terms. More importantly you can ensure that the parties are on the same page with respect to how they will treat their finances and the financial obligations  as a couple.

Are Estate Plans a good idea? Of course they are. Do you have an estate plan—for Californians, the most efficient estate plans includes a living trust (also known as an inter vivos trust). With a living trust you avoid having to go to probate court. If you do not have an estate plan, you’re a dummy and you should click this link to read about estate plans.

Whether you have an estate plan or not you know it is smart to have one. Why? Because if you do not have an estate plan the government decides what happens to your assets after you die. (BTW, if you do not have an estate plan you should read section 4 of this article and you should get an estate plan. If not from us from another competent lawyer. No kidding. really do this.)

If you do not have a prenuptial agreement the government decides what happens to your assets when you divorce.

Everybody knows that California is a Community property state. But the actual rules regarding characterizing and dividing assets and debts in a California divorce are complicated.

A brief example: if you own your own residence prior to marriage and your spouse never pays a penny towards the mortgage they will still obtain a community property interest in your house over the course of the marriage. They won’t obtain an interest equal to your own, but they will obtain an interest. If you have a prenuptial agreement, you can follow the government rules or you can make your own rules.

By the way, the manner in which the court determines  the value of your spouse’s interest in the house you purchased prior to marriage is particularly complicated. Click this link to learn more about how the interest of the spouse that does not own the real property and is not on the title to the real property is determined.

The government also has a complicated set of rules regarding spousal support, known as alimony. Click this link to learn more about California Spousal Support under the law.

You can leave the issue of alimony out of your prenup, but many people prefer to self determine the issue of alimony with their partner and use an attorney to advise about how to make the agreement they comport with the laws about prenups.

My partner isn’t sophisticated; they won’t understand the agreement.”

The party that hires the drafting attorney provides a copy to their partner, who then reviews it with a second attorney. This way, both parties will know their rights and obligations. The costs to review a prenuptial agreement are modest. The review of a prenuptial agreement by an attorney is relatively inexpensive. I generally charge one hour to review a prenuptial agreement and explain the person’s rights and obligations under the California family law code and the changes to their rights and obligations made in the prenuptial agreement.

• Clarification of Financial Rights and Responsibilities – A prenuptial agreement is a tool for fairness, allowing couples to outline their financial duties and expectations before entering marriage.
• Protection Against Debt – Many individuals bring personal debt into a marriage. A prenuptial agreement can specify who is responsible for debts.
• Division of Property – Everyone benefits when parties decide for themselves what happens to their assets and debts in the event of a divorce.

Galen Gentry has over 30 years of experience assisting clients in Los Angeles and Southern California with drafting, reviewing and enforcing prenuptial and postnuptial agreements to protect their families and their interests. Call at (310) 282-7521 or contact us online to schedule a free consultation.