The wedding planning process is often characterized by joy and optimism. After all, you’ve finally met “The One” and you can’t wait to spend the rest of your life with them. The truth is, however, that not all marriages last a lifetime.
A prenuptial agreement is a contract between a soon-to-marry couple that sets out the terms of the marriage as well as the financial implications should things fail to work. Done right, a prenup can save you money and minimize acrimony in the event of a divorce.
Here are two important reasons why you should consider signing the prenup before tying the knot.
1. To protect your assets
It’s not uncommon to come into a marriage with a significant amount of assets. These can range from a home to a valuable investment, a family heirloom or an anticipation of a significant inheritance. Likewise, it is not uncommon for your fiancé to come into the marriage with debt.
In both scenarios, a prenuptial agreement can protect you during the divorce. A properly executed prenup can separate marital property from personal property and ensure that you neither lose your assets during property division nor end up paying debts that you had nothing to do with.
2. To ease tension during divorce
At the onset of the divorce proceedings, most couples are often on the same page. As the process takes shape, however, it is not uncommon for disagreements to come up, especially on what constitutes marital property and how it will be split. And as you can imagine, this can arouse emotions and lead to a protracted divorce.
A properly drafted prenup can take care of any property disputes that might cause the divorce to drag on for months, thus, shielding you from a lengthy and costly court battle.
Understanding how California prenup laws work can be a great starting point if you are open to the idea of drafting a prenup.