California couples who are getting married or who are already married might want to keep their assets separate as a precaution for the future. As divorce is so common, having a prenuptial or postnuptial agreement might be a priority for some.
What are prenuptial and postnuptial agreements?
Prenups and postnups are legal contracts agreed upon by couples who are engaged to be married or already married, respectively. These documents can help keep some assets and property owned by each party separately in the event of a future divorce. However, they can also outline what’s expected from both parties during the marriage and state a specific amount of money granted in a divorce.
A prenuptial agreement is presented before marriage. Some people might find that they cannot bring up the subject of a prenup to their fiance(e) before the wedding. As a result, they might consider the option of a postnuptial agreement later after the couple has been married for some time.
A postnuptial agreement is almost the same as a prenup. However, it’s a contract between those who are already married.
When is a prenup or postnuptial agreement needed?
Couples may find it necessary to have a prenup or postnup based on certain situations. If one person has a lot more money than the other, they might want to preserve those assets in the event of a divorce. Some people choose a prenuptial or postnuptial agreement due to receiving a large inheritance or to preserve family heirlooms.
When one person has children from a previous marriage or relationship, a prenup or postnup is helpful. It allows them to ensure that those children will receive an inheritance in the event that they pass away before their spouse.
Owning a business is another good reason to get a prenuptial or postnuptial agreement. The contract allows the owner to retain full ownership and all profits garnered by the business.