Top 3 Benefits of a Prenuptial Agreement
Most think of a prenuptial agreement as less-than romantic, but others argue it is one of the best things you can do for a relationship. A prenuptial agreement or prenup has a number of different benefits; particularly in a community property state like the state of California. Even so, less than 10% of couples take advantage of the benefits that the prenuptial agreement has to offer them. One of the most common misconceptions is that to ask your fiancé to sign a prenup is to indicate a lack of trust. Yet many people feel more trust in their partner after they go through the process of obtaining a prenup.
- Chance to Discuss Issues Prior to Marriage: The process of obtaining a prenuptial agreement requires that you sit down with your partner and discuss a number of important marital issues. This is a wonderful opportunity for many couples to sit down and understand each other’s expectations, standards, etc. regarding different vital topics, such as: finances, employment expectations, ownership of assets, etc. It is surprising how many couples do not communicate these types of expectations prior to entering a marriage; particularly because differences of opinions in these areas can lead to tremendous levels of resentment later. Many choose to work with an experienced mediator when discussing the important prenup topics. Couples engaging in the prenup process are also able to include concerns specific to their situation as they go forward with the process.
- Prenups Mean Greater Control: Couples who do not have a prenuptial agreement in place who end up going through a divorce will find that they are automatically governed by the California Family Code and local laws. As California is a community property state, that means that each spouse automatically gets 50% of assets obtained during the marriage, including: business earnings, retirement, etc. For some, this would be an acceptable scenario. For other couples that own their own business or have other financial complications, it can be devastating. Unless there is a prior agreement in place through a prenuptial agreement, you lose a lot of control over your own divorce. Some divorces turn into long, expensive court battles. With a prenuptial agreement, both parties can dictate exactly what they would both want to happen if it should ever come to divorce.
- A Type of Marriage Insurance: The prenup agreement is a good way to offer protection to both spouses in a marriage against the possibility of divorce. No one plans on getting divorced before they have even said their marriage vows, but no one plans on their house burning to the ground or getting in a car accident or catching a sickness. These are unexpected events, and most people purchase insurance to protect themselves against these unexpected events with homeowner’s insurance, car insurance, and health insurance. A prenup is simply marriage insurance without the monthly payment.
If you need to discuss the benefits of a California prenuptial agreement, please get in touch with one of the experienced family law attorneys at The Maggio Law Firm today.