Tip:
Highlight text to annotate it
X
A prenuptial agreement is a document that lets you and your spouse-to-be make your own decisions
about which of your state's marital property and support laws will apply in case you and
your spouse get divorced.
Here are a some common reasons that people may want to avoid prenuptial agreements:
1. A prenup can be perceived as not romantic. During an engagement it does not seem appropriate
to discuss what to do if the marriage falls apart.
2. If the couple is young and starting out with no assets, a prenup talk can bring up
some trust issues and one of the couple may question the true motive for getting married.
3. It's hard to predict every possible change in the future circumstances that might occur
between the time a prenuptial agreement is written and a divorce
4. What seems fair and reasonable right now at the time of writing the prenup might seem
extremely unfair to one of the partners twenty years later.
5. State law may protect you without a prenup. California family law does a fine job regulating
couples' finances. For example, assets owned before marriage are separate property and
those accumulated during marriage are community property that is owned fifty-fifty. However,
watch out for fine differences of commingling , which I will discuss in another video.
On the other hand, there some considerable advantages to have a prenup before entering
the marriage:
1. One of the common reasons for divorce is financial disputes between couples. Discussing
it all up front will help to reduce conflicts and save money in case of divorce.
2. It can protect your separate property. 3. It helps you plan your estate
4. It defines what property is considered marital or community property
5. It reduces conflicts and saves attorney fees if you decide to divorce
6. It clarifies special agreements between you and your future spouse
7. It establishes procedures and ground rules for deciding future matters