When people are preparing to get married and share their lives with another individual, they may feel a mixture of excitement and fear. Their biggest concern is if things don’t work out as planned in the marriage. Having a prenuptial agreement can help to mitigate some of these fears and protect one’s assets in the event of a divorce in California.
Prenuptial agreements are often considered by those who have a substantial amount of wealth. However, a prenuptial agreement isn’t just handy for those who are famous and rich. It’s also useful for people who are older and possess investments, such as real estate, that they would like to protect.
Young individuals may also benefit from a prenuptial agreement if they enter a marriage with someone who brings an extensive amount of debt to the union. In the prenuptial contract, the two parties can agree that the person with the debt will maintain responsibility for this debt if the two end up getting divorced. Failure to sign this type of agreement means that how one’s marital property and assets are divided during divorce will be based on applicable laws.
Prenuptial agreements are often considered a wise alternative since about half of marriages end in divorce. Even if a couple did not sign this type of agreement (or create a postnuptial agreement after the marriage), they can still use the negotiation process to reach a divorce settlement that is fair to both parties. If they are not able to approach the divorce amicably, litigation may be their only option, and a divorce court judge will have the final say in their asset and property division-related affairs in California.
Source: abc22now.com, “Pre-Nuptial Agreements, Not Just For the Rich & Famous”, , Sept. 29, 2014