Why prenuptial agreements are valuable in California
Perhaps because the cost of living is higher than in some states, financial agreements before marriage are popular in California. Often, couples recognize that divorce is always a possibility and try to protect themselves in the event their marriages fail. Even so, some people hesitate to get a prenuptial agreement done.
Certainly drafting a prenuptial agreement in the middle of wedding planning can seem unromantic. Many people think that creating a prenuptial agreement means two people do not completely trust one another. For financial planning experts, however, belief in romance should never eclipse discussion of a topic that couples should have as soon as possible.
It might be sensitive and awkward to discuss a prenuptial agreement, but it is one way to protect both spouses’ financial interests. Even though those financial issues may seem irrelevant for couples about to marry, especially for those who are experiencing the blush of happiness, having a legal document that clarifies responsibilities and rights if the marriage fails is prudent.
If a couple chooses to draft a prenuptial agreement, they must pay attention to several significant factors, including enforceability, reasonableness, equitability and the impact on one or both parties’ financial stability. It is also important to remember that a prenuptial agreement should be in writing. The marital contract should be created based on full disclosure of assets, properties, income and debts. Full disclosure is important because it is the only way each party’s interest and rights can be protected during marriage and in a divorce. In addition, both long-term and short-term financial goals should be taken into account.
Source: The Huffington Post, “Prenuptial Agreements for Peace of Mind and Post-Coital Bliss,” Tara Fass, Dec. 15, 2014