The Essence of a Pre-Nuptial Agreement:
/In California, the framework for pre-nuptial agreements is laid down by the Uniform Premarital Agreement Act as per the Family Code 1600 et seq. This statute outlines the fundamental requirements for a valid pre-nuptial agreement, yet the scope of such agreements extends to a broader range of issues not explicitly mentioned in the statute.
Whether you like it or not the day you get married as a california resident you have signed up for a premarital agreement called default california law which governs how your property is shared in divorce and death.
It's important for anyone considering a pre-nuptial agreement to fully comprehend its terms, especially how it will affect their rights in the event of divorce or death. The recent case, Estate of Eskra (2022), 78 CA5th 209, underlines the significance of thorough understanding and legal representation in ensuring that the terms of a premarital agreement are clear, well-understood, and in compliance with California law.
Here are the essentials for an enforceable pre-nuptial agreement under the Uniform Premarital Agreement Act as practiced at Gordon Family Law:
Full Disclosure: Each party is required to make a full disclosure of their property and financial obligations.
Independent Legal Counsel: It's recommended that each party be represented by independent legal counsel to ensure fair representation.
Review Period: The final form of the agreement should be in the hands of each party at least seven (7) days prior to the execution of the document.
When considering a pre-nuptial agreement, it’s imperative to have a discussion with your prospective spouse regarding key areas, including:
Property Characterization: Character of separate property during marriage and characterization of income and appreciation of separate property assets after marriage.
Income Characterization: How income earned during marriage will be treated.
Debt Liability: Liability for debts incurred during the marriage or payment of debts incurred before marriage.
Household Expenses: Arrangements for household accounts and reimbursement for expenses.
Tax Filings: Agreements on tax returns and the option to file separately or jointly.
Asset Disposition: Disposition of assets acquired before or during marriage upon divorce.
Alimony: Arrangements for alimony or spousal support in the event of divorce.
Borrowed Funds: Character of assets acquired with borrowed funds.
Death-Specific Provisions:
Asset Disposition: Instructions on how assets will be disposed of or distributed upon death.
Waiver of Rights: Waiver of statutory rights upon death, which may affect the surviving spouse's entitlements under California law.
Residential Arrangements: Decisions regarding the use of the marital home by the surviving spouse after death.
Retirement Plans: Control and distribution of pension/retirement plans to the surviving spouse or other beneficiaries.
At Gordon Family Law, we emphasize a meticulous review and explanation of all terms within the pre-nuptial agreement to ensure that our clients are well-informed and their interests are adequately protected, both in marriage and in unforeseen circumstances such as divorce or death.