Do you own rental property? Are you getting married?

It is important to get a premarital agreement in California if you own a real estate development business before marriage.

If you manage your properties during marriage, the profits may become in part community property entitling your spouse to some of the rental income or alternatively you could be imputed with a reasonable wage that the community should be entitled to based on the use of your time energy and effort towards the rental properties. If you previously worked in a business and now are only a passive investor, then your assets are protected but if you actively manage any properties then under Van Camp v Van Camp (1921) 53 CA 17 the court allocates to the community reasonable compensation for the efforts of providing spouse or RDP (if they had not already received such compensation). The balance of profits or increased values attributable to normal earnings on separate property investment will go towards separate property.

A prenuptial agreement can protect both parties from any potential disputes regarding division of assets after divorce and also help both parties understand their rights regarding ownership before entering into marriage. This helps avoid costly litigation down the road by providing clarity about who owns what prior to getting married. It also sets out how financial decisions should be made when it comes to investments done together during marriage which can save considerable time and money later down the line.

Getting an enforceable prenuptial agreement in California is essential for couples who intend on starting businesses together or have existing ones prior to entering into marital union since it provides legal protection for all involved parties regardless what happens afterwards!