When entering into a marriage with a significant number of assets, it is understandable to want some level of protection. Prenuptial agreements have come a long way in the past several years, from once being more obscure aspects of family law primarily reserved for the ultra-wealthy to common sense approaches to establishing baseline protections for each party. Still, the greater the wealth a couple has prior to saying “I do,” the more beneficial a prenup can be.
Perhaps one of the biggest hurdles to overcome before creating a prenuptial agreement is that most people in California do not walk down the aisle with the intention of divorcing. Some people even view the very act of entertaining the idea of a prenup as a concession to divorce. The reality is that many people get married, and, later, some of those people get divorced. Having protections in place can be especially helpful to those who end up breaking things off.
Prenuptial agreements allow California couples to address issues as specifically as they deem necessary. While child custody and support issues cannot be laid out in a prenup, issues such as alimony and property are common features. Even though assets owned prior to marriage are typically still considered separate property at the time of divorce, this distinction can become less clear when an asset or business earns income over the course of a marriage.
Even a basic prenuptial agreement provides protection and clarity during divorce, but, for some, that may not be enough. In a divorce, high-asset individuals and those with serious stakes in businesses or companies stand to lose significant amounts of money. Before getting ready to exchange vows, we encourage our family law clients to take a critical look at their own assets and consider how prenuptial agreements could protect them.