Prenuptial/Postnuptial Agreements:
What, Why and When?!

An extensive body of laws in California determines the property rights of married couples and registered domestic partners. However, couples may choose to alter the application of those laws to their particular situation by entering into what is called a prenuptial or postnuptial agreement. As emotionally challenging as the subject may be, a frank and open discussion about managing the financial aspects of a relationship can often be the very thing that saves it!

Uniform Premarital Agreement Act requires that certain formalities be observed before a prenuptial agreement can be considered valid and enforceable. For example, any such document must be in writing, signed by both parties, entered into voluntarily and without duress or fraud, and with an actual or true opportunity to seek legal advice or counsel. Additionally, the party signing the contract must have been given a minimum number of days to review the document before he or she signs it. There are also strict formalities pertaining to drafting of postnuptial agreements that must be followed before the parties can effectively change the characteristic of an asset or debt which would otherwise be considered a community or a separate property or obligation.

The subject is of particular importance in second marriages or relationships where either party (or both) has acquired assets and withholdings, has earned substantial amount of employment related and retirement benefits, and/or has accumulated a substantial estate with commitments to a number of dependents and family members from previous relationship(s).

You may be surprised to learn that having an honest and open discussion about financial matters can often build bonds of mutual understanding, respect for each other’s values and responsibilities to others, and will be a wise investment toward securing your emotional investment.