Prenuptial/Premarital Agreement is an agreement between prospective spouses relating to the division of assets in the event of divorce that is to be effective upon marriage.
Reasons people would want a Prenuptial Agreement:
1. To pass separate property to children from prior marriages
A couple with a blended household may use a prenuptial agreement to separate the property and assets before marriage. Without a prenuptial agreement a surviving spouse might have the right to claim a large portion of the other spouse’s property.
2. Clarify financial rights
A couple might simply want to clarify their financial rights and responsibilities during marriage.
3. Clarifications of Alimony (Spousal Support)
A Couple might want to specify in advance how their property will be divided, and whether or not either spouse will receive alimony. California is one of the few states that a spouse can waive alimony. However, a judge can order spousal support if the other side would be destitute as a result of the separation.
4. Get protection from debts
Prenuptial Agreements can also be used to protect spouses from each other’s debts.
If a couple does not have a prenuptial agreement, California community Property law states that all community property is divided equally upon divorce.
Property acquired before the marriage is considered “separate property” and does not fall under 50/50 community property rule. Community property interest can come into play if the spouse contributes efforts to improve and enhance the property.