Most often, when two adults meet and fall in love, they hope to live happily ever after. However, no one knows what tomorrow holds. Before getting married, it is prudent that you safeguard your financial well-being. And this is where is prenuptial agreement comes in.
A prenuptial agreement, also known as a prenup, is a written agreement that a soon-to-marry couple gets into before tying the knot. This contract details each party’s assets and stipulates what will happen should the marriage come to an end via divorce. While signing a prenup is generally a good idea, certain circumstances make the need for this contract all the more compelling.
Here are two clear signs that you need to sign a prenup before tying the knot:
1. You are coming into the marriage with significant assets
More and more people are getting married late in life these days. As such, it is not uncommon for couples to accumulate significant assets prior to getting married. This is also common when people are getting into second or subsequent marriages. If you are getting into a marriage with significant assets, then you need to protect your possession with a prenuptial agreement.
2. Your partner has significant debts
Assets are not the only thing that will be up for division during a California divorce. Just like marital property, any debt that is acquired during the marriage must be divided according to California community property laws. If your soon-to-be spouse has significant debt, then signing a prenup may be a great idea. This will protect you from being held liable for debt that your spouse acquired.
A prenuptial agreement gives you peace of mind knowing that your hard-earned assets will be protected should the marriage end in divorce. Find out how you can safeguard your rights and interests while creating and signing a prenup in California.