In California + Nevada, under Community Property laws, both parties enter a marriage (or a registered domestic partnership) with “separate” property- basically, stuff you owned before the union.
During marriage, spouses acquire marital property, which Nevada + California law treat as 50/50 community property. This is where Premarital Agreements may come into play.
A prenuptial (or “pre-marital”) agreement is a contract that a couple enters into before they become married, allowing them to “opt out” of Nevada community property law, should they wish.
It also allows the parties to decide how property acquired during their marriage is to be characterized. Sometimes couples will create a similar agreement after they marry, referred to as a “postmarital” agreement.
There are many reasons why people choose to create a premarital or post marital agreement. These agreements are commonly known as a “prenup” or “postnup”.
A Premarital Agreement Can Protect More Than Your Money… (Your Kids!)
Sadly, many U.S. marriages end in divorce. A premarital agreement can help avoid costly litigation over assets. Premarital Agreements also support asset protection and estate planning goals. They’re especially important for business owners, second marriages, blended families, and high-net-worth individuals.
Read more about Asset Protection Planning…
Can’t We Just Do it Ourselves?
You can, but you probably should not. The success of a premarital agreement is based on the intricacies of the document and the laws governing these contracts. If the agreement isn’t drafted properly, or if it doesn’t follow the proper rules, it can fail by being declared unenforceable by the court.
The attorneys at Phillips Ballenger help clients in the counsel and preparation of premarital agreements by working closely with you to properly identify your goals, analyze your circumstances, and guide you to make the best choices.