california prenuptial and separate property agreements

California Prenuptial & Separate Property Agreements

california prenuptialIt is always important to establish the ground rules as you enter into a marriage, a civil union or basic cohabitation agreement, especially if you enter the relationship with sole and separate assets. LA Law Center can help, if you find that a California Prenuptial or Separate Property Agreement are options you are considering.

Joseph McHugh is our Estate Planning Lawyer that offers personalized Estate Planning for Singles, Couples, Same Sex Couples, and LGBT couples before or during the time that they are living together as a couple.

It is important for you to take control of your assets and make your life with another person understood before you take the PLUNGE!”
 

What is a Prenup or Postnup Agreement?

A Prenuptial Agreement, antenuptial agreement, or premarital agreement, commonly abbreviated to prenup or prenupt, is a contract that is drawn up between two people prior to marriage, civil union or any other agreement prior to the main agreement by the people intending to marry or contract with each other. This should be drawn up with two attorneys representing the interests of each person separately well in advance of the marriage.

The content of a Prenuptial Agreement varies, but generally includes decisions for division of property in the event of divorce or breakup of the marriage. It may also include terms for the forfeiture of assets because of divorce on the grounds of adultery; further conditions of guardianship of children may be included as well.

A Post Nuptial Agreement is a written agreement after a couple gets married, or have entered a civil union, to settle the couple’s affairs and assets in the event of a separation or divorce or death of one of the spouses.

It should drawn up with two attorneys representing each person. Like the contents of a prenuptial agreement, provisions vary widely but commonly includes provisions for division of property and spousal support in the event of divorce, death of one of the spouses, or breakup of marriage.

 

Why Do I Need a Prenup or Postnup Agreement?

In today’s society, it is critical that you and your intended life partner be prepared for your life together and defines your financial affairs in case the relationship does not work out. This includes, determining which assets should be jointly owned and which assets should remain separate property.

Too many times people make the mistake of thinking only the “RICH PEOPLE” need asset protection or estate planning. In fact, if you have even a modest positive net worth, you should investigate protecting your assets, especially before moving into what you consider a life time relationship.

Prenup or Postnup Asset Protection Planning is the legal way to protect your hard-earned assets in case of a failed relationship.

Joseph McHugh, our Asset Protection Attorney can help you legally establish the legally agreed ownership percentages of assets like the following:

  • Primary Residence
  • Other Real Estate Investments
  • Retirement Accounts
  • Savings or Valuable Collections
  • Automobiles and other Vehicles
  • Jewelry
  • Salary Income
  • Business Ownership 
  • Inheritance Assets or expected Inheritance Assets
  • Debts before Marriage or Civil Unions

 

Best Advice-Seek Experienced Legal Counsel!

If you are over 18 years old and do not have legal documents in order and especially if you are bringing assets into the relationship, it advised to seek experienced legal counsel, especially if you are planning a marriage, civil union or living together as a couple!
 

California Prenuptial Agreements (Before Marriage or Relationship)

A prenuptial agreement (also called a premarital or ante nuptial agreement) is a contract between two people who intend to marry and to be effective upon marriage. It can address how you will divide your property and responsibilities:

  • During the Marriage
  • At the Death of Either Spouse
  • At their Divorce

Basically, you can use the prenuptial agreement to dictate everything from how the monthly bills will get paid to what religious institutions your children will attend. However, one of the main reasons that you might want a prenuptial agreement is to ensure that what is yours before the marriage remains yours if the marriage ends.

Most often, a prenuptial agreement is used by people who are getting married for the second or third time or in a situation where one person has substantially more income or assets than the other person coming into the marriage. However, considering the increased divorce rate in this country, many people are using prenuptial agreements as a way of decreasing the emotional and financial toll of divorce by specifying in advance how their marital property will be divided.

The LA Law Asset Protection Attorneys will be able help you decide what is right for your situation and document the specifics in a prenuptial agreement before you get married or set up a couple’s relationship.
 

Separate Property Agreements (During Marriage or Relationship)

Attorney Joseph McHugh can help you create Separate Property Agreements (Post Nup) are documents that list those assets which, by definition, are the separate property of each spouse. This includes any property that was owned by the individual prior to the marriage, or any gifts, inheritances or awards from lawsuits. If a Living Trust is used, the list of separate property is attached to, and becomes an integral part of, the Trust. Since a Trust is simply a contract between two parties, if the parties agree to identify certain assets as separate property, the assets are so identified.

The effect of a Separate Property Agreement is that separate property assets placed in the Trust will retain their characteristic as separate property, even though they will take on the name of the Trust. This means that the separately belonging to each spouse may be brought together for the enjoyment of both spouses. Upon the death of one spouse, the assets remain in the Trust to provide for the surviving spouse. However, on the death of the surviving spouse, the separate property will go to the heirs specified by the spouse who owned the property.

Assets held as separate property are often commingled as the marriage progresses. For instance, you may enter into marriage and then receive an inheritance of stock, which you later decide to invest in your home for expansion or upgrading. Before you know it, this asset has become a part of the marriage property. However, with Separate Property Agreements included as part of your Living Trust that property may easily be identified as separate property and be treated as such.

Separate Property Agreements are especially beneficial if a husband and wife have each been married before, and both have children by their former marriages. When these two people are married, they brought their previously acquired assets together so that together they might enjoy a higher standard of living. The couple desires that, upon the death of one of them, the surviving spouse should continue to enjoy that same standard of living. However, upon the death of the surviving spouse, the couple wants his or her share of the estate to pass on to the children of his or her former marriage.
 

Post-Nuptial Agreements (During Marriage or Relationship)

A postnuptial agreement is a voluntary marriage contract between spouses that is created after their wedding. This agreement addresses the same issues as the Pre-Nupital Agreements.

COHABITATION AGREEMENTS: Living Together Without A Legal Marriage for both SAME SEX & OPPOSITE SEX Relationships

A Cohabitation Agreement is a voluntary contract between two individuals that are or will be living together for a long period of time, but not in a legal marriage arrangement. This can be the best thing for any couples to establish the property agreements as stated above.

However, it is critical that the same sex couples have additional Estate Planning documents to protect their rights as a couple, especially if they plan to travel to areas where same sex marriages are not recognized.

Best advice… get legal advice to protect your assets if you are considering enters a life time relationship!

Call us for a free 30 minute initial consultation for our legal services at: (818) 241-4238. Or you can submit this form to request this free 30 minute consultation to determine if our services meet your needs.