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Choosing a prenuptial agreement in California

On Behalf of | Jul 21, 2023 | Property Division

Engaged couples have many plans to make. They need to choose where they’ll get married, decide on rings and order a cake. They may also want to add a prenuptial agreement to their list.

Prenuptial agreements

A prenuptial agreement, also called a prenup, is an agreement the couple makes before they get married. It is legally binding and addresses how their assets and debts will be divided if they divorce. It can also include other rights and responsibilities, such as how household expenses will be divided or how decisions will be made.

Each spouse must fully disclose their financial information to the other spouse and the agreement must be made voluntarily. If the parties do not have a prenup and they divorce in California, their community property will be divided equitably.

Items to include

The content of the prenuptial agreement will vary depending on the couple’s circumstances, but there are some topics that are usually included. In addition to addressing the division of assets and debts, the agreement can also state whether either spouse will pay spousal support in the event of divorce, including how much and for how long.

If either spouse owns a business, they may want to address how that would be divided or if it will stay separately with one spouse. Some couples also choose to include alternative dispute resolution methods, like mediation or arbitration, that they can use to resolve disputes outside of court.

A well-drafted prenuptial agreement will protect both spouses’ interests and there is help available to guide couples through this process.