Getting remarried offers a fresh start for many California residents. It may also involve challenges that make the union complicated. The accumulation of assets and children from a previous relationship can raise the financial stakes of your subsequent marriage.
If you and your intended spouse have significant property, a prenuptial agreement may benefit both of you. According to the Los Angeles County Bar Association, California’s premarital agreement statute ensures the enforceability of the document. It requires a seven-day waiting period between the completion of the agreement and the signing.
Understanding each other’s financial situation helps you plan for the future and establish trust. The issues that you can address in a prenup include the following:
- Supporting the new spouse through old age
- Balancing the need of your children with your new spouse
- Bequeathing assets to your children if the new marriage is intact when you die
- Agreeing upon the asset distribution of the union dissolves
- Determining a divorce process if it becomes necessary
A consolidated net worth statement and any other financial planning instruments you utilize can help complete the economic picture.
Your union may have legal implications with a financial impact if you or your future spouse have ownership of a business. If it appreciates during your marriage, it could affect the settlement significantly. Agreeing on a valuation method and defining how you address it in a divorce is essential. If one or both of you have children from previous relationships, protecting their inheritance may be paramount. A prenuptial agreement can detail how you handle these concerns.
A prenup can also establish conflict resolution methods and streamline the property division process. Including a list of separate properties can help minimize divorce costs and potentially help you avoid litigation.