A prenuptial agreement, commonly referred to as a “prenup,” can be a critical document for many couples preparing to tie the knot in California. This legal contract, established before marriage, outlines the management and division of assets and financial responsibilities should the marriage end in divorce. Harris Poll reported that as of 2022, only about 15% of married couples have a prenup.
While many view prenups as a safety net, it is important to ensure your agreement truly serves your best interests.
Full disclosure of assets
For your prenuptial agreement to genuinely serve your best interests, both parties must fully and honestly disclose all assets and liabilities. If you or your partner hides assets or fails to disclose them, the prenup may not accurately reflect your combined financial picture, and it might not work in your favor in the long run.
Fair and just provisions
The primary goal of any prenup should be fairness. Make sure that the terms of the agreement do not excessively favor one party over the other. If you feel the conditions are heavily skewed or if they leave you at a significant disadvantage, it might not be in your best interests.
Protection from previous debts
One of the benefits of a prenup is that it can shield you from your partner’s prior debts. Ensure that the agreement clearly states who is responsible for what, so you do not find yourself burdened with your partner’s previous financial obligations.
Consider future changes
Life is unpredictable, and circumstances change. Think about potential future scenarios, such as the birth of children, career changes or inheritances. Your prenup should be flexible enough to accommodate these changes or at least provide mechanisms to revisit the agreement’s terms if necessary.
Understandability and clarity
A well-crafted prenup should be easy to understand. Avoid complicated jargon and ensure that all terms are clear. If there are sections you find difficult to comprehend, seek clarification.
Determining whether a prenuptial agreement is in your best interests requires careful consideration and a clear understanding of its terms. By ensuring you and your partner have been honest and upfront about everything, you can be more confident that your prenup will stand as a testament to your mutual respect and understanding rather than a source of contention.