A significant amount of California couples decide to get prenups as part of their future plans removing the age-old stigma that prenups are only for wealthy couples. In reality, everyone wants protection in unforeseen circumstances. So, how do prenups work in California?
Read on as we explore California’s legal requirements for getting a prenuptial agreement.
How Do Prenups Work in California?
Prenups allow couples to plan ahead and protect themselves in case of divorce. Through open discussion, California couples can decide and sign off on financial decisions during their marriage and in the unfortunate case of a divorce.
With a prenup, both parties can protect themselves and their assets. Prenups do not actually become effective unless you divorce. At that point, the parties would abide by the agreement they came to when they dissolve their marriage. This also answers the question of whether prenups expire in California. The answer is no, and they are valid indefinitely unless you modify them or it was signed under duress. The language in the prenup becomes language in your divorce judgment.
Because there are several legal considerations regarding prenups, it is advisable to get the help of a prenup lawyer California.
California’s Legal Framework for Prenuptial Agreements
The Uniform Premarital Agreement Act (UPAA) in California
The Uniform Premarital Agreement Act (UPAA) governs prenuptial agreements in California. This statute describes the form of a legally binding premarital agreement. It also specifies what topics are allowed and prohibited for discussion in the contract.
A California prenuptial agreement may cover a wide range of marital issues under the UPAA. These elements include the following:
- Division of property and assets (separate and marital property)
- Management of debts (existing and future)
- Spousal support and alimony terms
- Business interests and investments
California’s Community Property Laws
When spouses file for a divorce in California without a premarital agreement, the courts will apply community property laws to determine how their assets will be divided.
All assets acquired during a marriage are referred to as “community property,” while pre-existing ones are “separate property.” In a state divorce, the marital estate will often be divided 50/50 by the courts in California.
One way around this rule is through prenuptial agreements. They let partners categorize what belongs to them and what doesn’t. Prenuptial agreements also allow couples to decide how community property will be allocated and divided.
Legal Requirements for a Prenup to be Enforceable in California
First of all, for a prenup to be enforceable, it must be in written form and notarized.
The other legal requirements include the following:
- Signed voluntarily – both partners must sign the prenup voluntarily without coercion
- Full disclosure – it is required that both parties fully disclose assets, liabilities, and debts.
- Fairness – the prenuptial agreement must be coherent and fair for both parties. If the court determines that the prenup is fundamentally unfair to one person, it may not enforce it.
- Time consideration – the prenup must be signed well before the wedding. In California, there’s the “7-day rule”, meaning that there must be at least seven days between receiving and signing the agreement.
- Legal representation – the best way to ensure enforceability for both parties is to have separate legal counsel.
Limitations to What a Prenup Can Cover in California
The courts will not enforce child support and custody rights stipulated in a prenuptial agreement. Other topics not enforceable in prenuptial agreements are unconscionable terms or conditions.
For example, non-financial criteria could include making one spouse become a stay-at-home parent. Prenuptial agreements with such clauses will be considered unenforceable in court.
Process of Creating a Prenup in California
Step 1: Discussion and negotiation – the best start to getting a prenup is both parties having an open discussion to decide on the terms surrounding the prenup.
Step 2: Drafting the agreement – It is best to have the help of a lawyer to ensure every term included is lawful and that the prenup will be enforceable.
Step 3: Review and revision – once the agreement is drafted, lawyers will review it and ensure that the prenup meets all legal requirements.
Step 4: Signing the agreement – once the agreement is signed, it will take effect immediately upon the marriage.
Conclusion
This should answer the basics on how do prenups work in California. Equipped with knowledge, a couple should be able to take the next step to protect their future. If you have any questions or need help drafting your agreement, contact Moore Family Law Group, and one of our experts will be available to help.