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  A Prenuptial Agreement (or Premarital Agreement) is a legally-binding contract entered into by prospective marriage partners prior to their wedding. These agreements are designed to memorialize the parties' intentions regarding how they will handle their financial relationship after they are married. Premarital Agreements may be used simply to confirm the separate property that each party is bringing into the marriage, or the parties may choose to define for themselves whether and to what extent the community property laws will apply to assets acquired after the wedding. A Prenuptial Agreement may also provide for limitations and even waivers of spousal support (alimony), but only if the party giving up potential rights is represented by independent counsel. In considering a Prenuptial Agreement, one should contemplate not only his/her own desires regarding financial affairs, but the effect the agreement itself and the negotiations surrounding it will have on one's future relationship with the betrothed. Sometimes, discussion of the proposed agreement can create undesirable tensions in a relationship. On the other hand, laying one's cards on the table and frankly discussing the financial underpinnings of the marriage in advance may make the relationship stronger. A good way to have a conversation about the parameters and the terms of your prenuptial agreement is to have both parties and their respective lawyers participating in the discussion, prior to drafting the actual agreement. This can minimize conflict and make the process a positive experience. We recommend that any Prenuptial Agreement be completed well in advance of the actual wedding ceremony so that each party will have the opportunity to soberly and rationally make the choices and decisions necessary to his or her best interest. An agreement which is entered into on the eve of marriage may later be subject to claims of coercion or undue influence, and its validity could be challenged in court. Each party should have the agreement reviewed by an independent attorney of his/her own choosing, because, depending on the terms of the agreement, it could have a very substantial effect on a person's rights during the marriage and in the event of a subsequent divorce. In fact, California law calls into question the enforceability of any Prenuptial Agreement that limits the legal rights of a party, if that person did not have his or her own independent counsel when the agreement was signed. We regularly assist clients in the preparation or review of Prenuptial Agreement. We can also suggest the names of other counsel to be consulted by your future spouse. |
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