The main goal of prenuptial and postnuptial agreements is to protect assets and set financial expectations between couples going through a divorce. It’s common to think that these agreements are automatically enforced, but California has very strict requirements surrounding them. These requirements fall into the realm of examining how the agreement was made, and if both parties fully understood its content. Full and fair financial disclosure is also vital in the state of California when it comes to prenups and postnups.
The Difference Between Prenuptial and Postnuptial Agreements
Simply put, prenuptial agreements are signed before marriage and postnuptial agreements are signed after marriage. They’re both known to focus on issues like property division, debt responsibility, and any spousal support.
People tend to sign prenuptial agreements to protect themselves and their assets in case of a divorce, especially if one or both parties holds a large amount of wealth. Postnuptial agreements are commonly signed during the marriage because of major life changes such as business growth, newly obtained inheritance, or marital problems that bring up the possibility of a divorce.
Something to note is that the state of California pays extra close attention to postnuptial agreements since spouses already owe each other duties during the marriage, so it’s important that these are handled in the correct legal way to be considered legit.
Legal Requirements in California
One key legal requirement to keep in mind pertains to all documents being created/signed voluntarily by both parties. In other words, no one should have been forced or coerced into signing any type of pre or postnuptial agreement.
Another requirement is the full and fair disclosure of assets and debts. Lying about assets or finances can lead to major problems when it comes to executing these agreements.
Finally, the terms just need to be deemed fair and reasonable at the time the agreement is signed. If any one of these requirements is not met properly, then the agreements can be considered null and void.
It’s also important to understand that according to California state law, prenups can only be amended or revoked by a signed agreement by both parties involved.
The Seven-Day Rule
California operates under the seven-day rule when it comes to prenups. This rule just means that a prenup cannot be signed any less than seven days upon being presented with it. The best way to make sure you are following the legal protocol where this is concerned is to hire the right legal counsel to represent you.
Common Reasons for Prenups and Postnups Being Challenged
There are certain instances where prenups and postnups are challenged in court. These typically happen when they are drafted poorly or not read over properly. Rushing through making your prenup and not having the right legal counsel to help can be detrimental to your case.
Other issues that can happen that relate to prenups are incomplete or hidden financial disclosures and high pressure. It’s important to note that these are all preventable. As long as you follow the standard rules and regulations along with speaking to your attorney, the chances of running into these problems diminish significantly.
How Are Business and Property Impacted?
Prenups and postnups are known to override California’s community property rules. This is particularly important for business owners, professionals that have high income, and people that are entering second marriages.
Agreements that are drafted the right way help to limit things like disputes, legal fees, and any uncertainty throughout the divorce process. In addition, well-drafted prenups or postnups can protect businesses from being divided or an ex-spouse from gaining any form of ownership. This type of protection can be essential in maintaining your business structure as it is and avoiding expensive valuations.
Moving Forward
Before you rush into signing or creating a prenup or postnup, make sure to consult the right legal team. Men’s Legal Center in San Diego is a team of experienced attorneys that are here to help. Make sure you reach out for your free case review as soon as possible.