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6 Benefits of Prenuptial Agreements

Fri 31st May, 2024 Family Law

Prenuptial agreements are not only for the rich and famous. Almost all couples could benefit from a well-drafted prenuptial agreement, as such agreements can set expectations for the marriage and help resolve future disputes, among many other benefits. Speak to one of our Stockton prenuptial agreement attorneys to discuss crafting a prenuptial agreement that works for you. 

Encouraging Communication 

For a prenuptial agreement to be valid and enforceable in California, each spouse must disclose the full extent of their property to the other spouse. Prenuptial agreements thus facilitate communication and encourage the spouses to be open and honest with each other at the outset of the marriage and set the tone for the future. 

Identifying Assets and Debts 

One of the most basic purposes of prenuptial agreements agreements is the identification of each spouse’s separate assets and debts. And why is that important? Because California is a community property state, meaning that all marital property is split 50/50 upon divorce. While assets and debts brought into the marriage remain separate property, that separate property can become marital property if it is sufficiently commingled with marital property. The easiest way to avoid the default 50/50 split rule is to clearly identify each spouse’s separate property before marriage. 

Setting Financial Expectations 

Arguments over finances are one of the most common reasons why couples divorce, and it’s easy to see why — every person manages money their own way, and when two people marry, their financial habits may not mesh. Couples can circumvent those disagreements with a prenuptial agreement that spells out exactly how the marital finances are to be managed. Prenuptial agreements can also be used to specify whether either spouse will be entitled to alimony, and how much. 

Protecting Business Interests 

Prenuptial agreements are particularly beneficial for business owners, whether the business was started before or during the marriage. They can protect business interests in a variety of ways, such as clarifying ownership of the business, establishing the assets that belong to the business, and providing a method for calculating the value of the business, among others. 

Providing for Children From Previous Marriages 

An often-overlooked benefit of prenuptial agreements is that they can also be used to safeguard the financial interests of children from previous marriages. For example, a spouse with a child from a previous marriage might set aside a certain amount of money to be paid to that child on the parent’s death as a way to shield the child’s inheritance from property division.   

Keeping Divorces Out of Court 

No one wants their divorce to end up in court. But ending up in court is significantly more likely without a prenuptial agreement in place. That’s because prenuptial agreements can reduce the number of issues the spouses could potentially fight about in a divorce. Prenuptial agreements can resolve almost all divorce-related issues (with the notable exceptions of chid custody, child support, and visitation) in advance. 

Craft a Prenuptial Agreement That Works for You With Help From Our Stockton Prenuptial Agreement Attorneys 

To find out how a prenuptial agreement could benefit you, please contact a Stockton prenuptial agreement attorney at McKinley, Conger, Jolley & Galarneau by using our online form or calling us at 209-477-8171.

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