Why should you get a premarital agreement?
/Protection of Separate Assets: A premarital agreement can specify that certain assets or income remain separate property, unaffected by community property laws. This is particularly useful for protecting assets like a sole proprietorship, partnership interests, or other equity positions in a company.
Intellectual Property: For creative or innovative individuals, a premarital agreement can ensure that inventions, patents, copyrights, and other forms of intellectual property created during the marriage remain separate property.
Business and Professional Goodwill: If one spouse owns a business or has professional goodwill (such as a medical practice, law firm, etc.), a premarital agreement can protect this from becoming community property, which would otherwise be subject to division upon divorce.
Management of Financial Contributions: The agreement can outline the handling of financial contributions to marital assets, providing clarity and preventing disputes over the source and ownership of funds used during the marriage.
Avoiding Spousal Support Obligations: Premarital agreements can include provisions that limit or eliminate spousal support, which might otherwise be mandatory under state laws. This can be particularly important in cases where one spouse has significantly higher earnings or assets.
Clarity and Certainty: A premarital agreement can provide clear guidelines and expectations for the management of financial issues in the marriage, which can help avoid misunderstandings and conflicts.
Estate Planning: For those with significant assets or complex family situations (like children from previous relationships), a premarital agreement can integrate with estate plans to ensure assets are distributed according to specified wishes without interference from community property laws.
Overall, a premarital agreement offers a way to preemptively address and manage potential financial disputes, providing peace of mind and financial security for both parties.