What you must need to know about prenuptial agreement in California?

According to its generic definition, a prenuptial agreement is defined as a legal agreement which provides financial protection to both people who are supposed to get married. Why it is required? With such an agreement in place, both of them can protect a family inheritance, a thriving business, or ensure that children from any previous marriage receive better care and don’t get stuck due to financial crunch.

However, deciding on whether to go for it or not is a tough decision. There are a lot of misconceptions about these agreements and who uses them.

How a prenuptial agreement can be helpful to me?

While rich individuals do often use prenups, prenuptial agreements have far more uses than just protecting the assets of a wealthy individual. Prenups can be used to:

·         Protect one party's assets

·         Protect a party from assuming the debts of the other party

·         Determine how property will be passed upon death

·         Clarify financial rights and responsibilities during a marriage

·         Avoid long, costly disputes in case of divorce

What if I don’t get an agreement?

In this case, California court has given certain guidelines that determine how property is handled during and after marriage. In most of the cases, your spouse is entitled to:

·         Share and receive ownership of property acquired during the marriage

·         Receive some of your property upon death

·         Share in any debts acquired during the marriage

·         Share responsibilities in managing property acquired during the marriage

Many people have a preconception that signing a prenuptial agreement in California is a full-proof way to protect his or her property, but in actual, it’s not. Therefore, a number of guidelines must be followed when creating a prenuptial agreement in a big to ensure that assets are adequately protected. Without following these guidelines, a person going into marriage is prone to the risk of losing everything he has in the case of a divorce.

While creating a prenuptial agreement in California, it is highly important to get a full written disclosure of all assets and liabilities of both the parties. It is advised to be honest in this regard as courts take those assets into consideration that you mentioned earlier.

Another important point to note is that the terms of the agreement are fair and reasonable. Make sure both parties are represented by separate legal counsel. Last but not the least,it is important check into laws specific to the state the marriage is supposed to take place.