A marital contract can make it easier for two parties who are preparing to marry to discuss important financial issues and make plans for a contingency in the future. A prenuptial agreement is a contract often used to determine how marital property should be split in the event of a divorce, but it can offer other benefits as well. California couples of all income levels will find that a prenup offers protection and peace of mind.
What does it do, and who needs one?
One of the primary functions of a prenup is to decide how married spouses will divide their marital assets in case they divorce. It can also allow a couple to discuss matters that will be important during the marriage, such as the financial responsibilities of each spouse. A spouse can also add provisions that will protect important assets he or she brought into the marriage.
Most couples can benefit from the protections provided by a prenup, but especially those bringing valuable assets into the marriage or those who own and operate a small business. They are also useful for spouses who have children from previous relationships whose interests they wish to protect. In case of a divorce, a prenup can reduce contention between parties.
A strongly worded agreement
A prenup must be properly worded and drafted in order to be enforceable. When creating this type of agreement, it is beneficial to work with an experienced California family law attorney to ensure an appropriate agreement that can withstand potential scrutiny. Before walking down the aisle, a couple may consider this step as a way to protect their future financial interests.