Premarital agreements, more commonly known as prenuptial agreements, are agreements that are entered into prior to marriage and dictate the distribution of property in the event of a dissolution.
What Are the Advantages of A Premarital Agreement?
The premarital agreement is a powerful tool. With it, the parties can override the presumption of community property and keep separate property separate. A good deal of this would involve earnings. In California, wages and earnings acquired during the marriage (and before the date of separation) are community property. The parties can stipulate in a premarital agreement that all wages and earnings are considered separate property.
Another area where a premarital agreement is helpful is where one party owns a house prior to marriage and this is where the couple chooses to live after they marry. The house is separate property of the person who bought it. However, the community can earn an interest in the house by virtue of making the mortgage payment with the couple’s earnings. In order to avoid this outcome, the parties can stipulate in a premarital agreement that the community will not earn an interest in the house as a result of community earnings contributing to the mortgage payments.
Many parties want to address support with a premarital agreement. A waiver of support is not enforceable.
Do I Need A Premarital Agreement?
There is a common belief in our society that only the wealthy can benefit from a premarital agreement; that is not true. Homeowners, single parents, business owners, grandparents, and professionals are just a few who could benefit from a premarital agreement. Even individuals who are just starting out in life may choose to enter into a premarital agreement.
Should I Enter Into a Premarital Agreement?
- You should not enter in to a premarital agreement until:
- You have had an opportunity to read its contents;
- You have consulted with an attorney who specializes in family law to determine whether the premarital agreement is right for you. This should not be the attorney who drafted the document; and
- You have had time to think about it.
This is a very serious matter. You should not sign the agreement on a whim or out of fear that the wedding will be postponed. To learn more about premarital agreements please contact the Thomas Hogan Law Office.
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