Call now for a free, risk-free consultation - (510) 916-2100
In this article, you can discover…
California is a community property state, which means that any income or assets acquired during a marriage are generally considered to be owned equally by both spouses. When dividing property and debts during a divorce, the law typically requires a 50-50 division of those assets.
However, a prenuptial agreement allows couples to make alternative arrangements. If both parties are
represented by their own attorneys and the terms are fair, a prenup can specify how assets will be divided,
overriding the default community property rules. This can help protect family assets and clearly define what
belongs to each party before entering the marriage.
Under California trust laws and prenuptial agreements statutes, prenuptial agreements are considered special arrangements. As such, they can legally determine how specific assets will be handled in the event that you divorce, even if that differs from standard community property laws.
A postnuptial agreement functions similarly to a prenuptial agreement, except it is signed after you have already married. It sets forth how assets should be handled in the event of a divorce. Like a prenup, a postnup is enforceable as long as:
Without such an agreement, California’s default community property laws will apply.
The main risk is that a prenuptial agreement typically addresses only what happens should you divorce. It often does not provide for what should happen if one spouse passes away.
In California, a trust is usually necessary to avoid probate and ensure that assets are distributed according to your wishes after death. So, while a prenuptial agreement is useful for divorce-related matters, it should be complemented by a comprehensive estate plan, including a trust, for your full protection.
Estate planning and prenuptial agreements often require coordination between multiple attorneys unless the same attorney is qualified to handle both. Ideally, you and your spouse should have independent legal representation. The estate plan, including any trusts therein, should reference the existence of the prenuptial or postnuptial agreement. Likewise, the prenup or postnup should be written with awareness of the estate planning strategy.
Doing so ensures that both legal instruments work together rather than at cross-purposes, providing a more secure and comprehensive plan for your future.
Still Have Questions? Ready To Get Started?
For more information on California trust laws and prenuptial agreements, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (510) 916-2100 today.