California couples who are contemplating marriage may be facing the tough decision of whether or not to obtain a prenuptial agreement. There are many benefits to having such an agreement; for example, couples can protect their most valuable assets in the event of a divorce.
Many attorneys argue that there are several reasons that couples may want to seek a prenuptial agreement. For example, older individuals who have already worked hard to build their own company or have worked their way up the proverbial ladder in the business world may want to protect their assets in case of divorce. Athletes who are on the edge of going pro may also be benefited by a prenup.
On the other hand, certain couples may not benefit from prenuptial agreements. One attorney argues that if the family wealth is estimated to be less than $200,000, the costs of drafting the prenuptial agreement may be inappropriate. Otherwise, if a couple has worked diligently throughout their marriage to built up their lifestyle and assets, it may only be fair to equally divide the property the two have worked so hard for.
The state in which the couple lives is also an important factor in determining whether a couple needs a prenuptial agreement. California, for example, is an equal distribution state, which means that any and all property that is obtained during the marriage will be split equally if there is not prenuptial agreement. However, divorce can turn nasty with ex-spouses attempting to hide property. An experienced California family law attorney may be able to assist clients in making sure that they receive all of the assets that they are entitled to regardless of whether they had a prenuptial agreement or not.
Source: CNBC, “How to Know If You Need a Prenup“, Kelley Holland, June 18, 2013