Here in Orange County, California couples may encounter the term prenuptial agreement. Most people have probably come across the marital agreement from news about celebrities and business tycoons. However, couples who are curious about the agreement should bear in mind that it is also perfectly applicable and advisable for all married residents to have one in place.
A prenuptial agreement seeks to protect the assets and rights of both spouses. However, more and more people are becoming familiar with how useful it is in helping make a divorce run smoothly. For one, it can prove useful in determining which assets are considered marital property and which assets are considered separate property during property division. This can be quite helpful, especially if a couple shares a considerable amount of assets, businesses and property.
Provisions in a prenuptial agreement can also help resolve issues concerning 401(k) and 403(b) retirement accounts. The same goes for the marital home. A divorce poses so many potential complications when it comes to dividing or selling a marital home. However, including a stipulation on the possible outcome of a home in the event of a divorce or death could lessen the complications. With all its advantages, a prenuptial agreement also has its limitations. For one, it cannot prohibit alimony or child support.
Orange County couples should also realize that a prenuptial agreement’s value is not just related to the divorce. A couple should think of having a prenuptial agreement as a marital guide that helps keep the marriage organized when it comes to their property and other important aspects of a marriage. As sad as it may seem, a marital agreement can make a considerable difference if a spouse passes away and the surviving spouse decides to remarry.
An Orange County couple interested in having a prenuptial agreement before they get married may wish to consult a family law professional. The legal professional can help shed light on questions as well as help to determine which details should be included in the agreement.
Source: Post-gazette.com, “Divorcing couples face sea of potential issues when dividing financial assets,” Tim Grant, Sep. 2, 2013