Premarital Agreements

Premarital Agreements memorialize both the current financial circumstances of the parties and their wishes regarding the laws that apply to the marital estate once they get married.  These agreements are completed prior to marriage. Part of the agreement contains a record of what each party owned at the outset of the relationship, so that in the event of a divorce, the property that each party owned when they entered the marriage is clear. Perhaps more important is that Premarital Agreements can also address whether or not California community property laws will apply– in whole or in part- during the marriage. By making these decisions at the onset of a marriage, extensive litigation can often be prevented in the event of a dissolution and assets can be preserved.

Pre-marital agreements are often sought by couples who, for example, are entering a second marriage and want to memorialize their current assets for estate planning purposes; by parties who are beneficiaries of trust funds or those who have received large inheritances; or by individuals of high net worth or business owners who want to ensure their separate assets are documented as compared to marital assets.

Both parties must have attorneys to represent them prior to signing a Premarital agreement. Sometimes, one attorney will draft the Premarital agreement while another will serve as a reviewing attorney, but many Premarital agreements are drafted with the assistance of a mediator, so that the parties jointly understand and agree on the terms initially, instead of trading drafts through their attorneys. It is still necessary for the parties to have legal advice from their own attorneys if a mediator is used in the process, as it is vital that everyone has a thorough understanding of California law and the ways in which their Premarital agreement differs from that law.