The Terms You Can Put In Your Prenuptial Agreement
A prenuptial or premarital agreement not only provides a sense of security to both the partners but also minimizes marital conflicts and disputes. However, the State of California stipulates specific rules and guidelines of the terms and clauses that can be incorporated in a prenuptial agreement.
Keep your finances separate
Every state has its own guidelines to classify certain assets acquired within a marriage as marital or separate property. In the event of a divorce or a death of either spouse, the court of law is obliged to equally divide the marital assets between both the parties. In case you do not want your individually acquired property to be divided according to the state laws, you can mention the same in your prenuptial agreement.
Limit your debt liability
Both you and your spouse might bring along individual assets as well as debts to your marriage. However, in case of a default, the creditors might turn to your marital or community property in a bid to pay off the debt of either spouse. In order to ensure that your marital assets remain untouched, you can limit each other’s debt liability by mentioning a term to that effect in your prenuptial agreement.
Inheritance for your children from a previous marriage
If either you or your spouse has children from another marriage from the past, you can ensure that they inherit their share from your property, by mentioning it in your prenup agreement. This will not only minimize conflicts, but also ensure that your children receive adequate financial support in the event of your demise.
Keep your family property within your bloodline
If you own a family business or heirloom or are entitled to a future inheritance, you can keep it within your birth family by specifying the details of your wish in the prenuptial agreement. Since your spouse will be in agreement of keeping the property separate from the relationship, you can stay assured that there will no conflicts regarding its distribution in the future.
Provide instructions for property distribution in a divorce
As aforementioned, every state has its specific laws that govern the ultimate division and distribution of property in the event of a divorce. In other words, the court of law decides who gets what. However, you can effectively bypass the protocol by specifying in your prenup agreement, as to who will be entitled to what asset or property in the event of a divorce.
If you are thinking of creating a prenuptial agreement with your partner, contact The Maggio Law Firm who can assist you in clearly defining the terms of the agreement.
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