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Consider these high net worth prenuptial issues before marriage

On Behalf of | May 30, 2019 | Firm News, High-net Worth Prenuptial And Postnuptial Agreements |

Some California spouses are quite similar to each other. They grew up in similar environments, perhaps were educated at the same universities or maybe even have worked in similar fields before deciding to get married. Other couples are examples of the old cliche about opposites attracting. They are different on nearly every level, especially regarding finances. When potential spouses have a tremendous imbalance of wealth, it makes sense to consider a high net worth prenuptial agreement.

California is a community property state. It is one of nine states that operate under such laws in divorce. Judges in these states usually split marital property 50/50 between spouses in divorce. A prenuptial agreement is an essential tool for a person of high net worth who files for divorce in a community property state.

Full disclosure is required for both spouses when listing assets and liabilities in divorce. A prenuptial agreement can help protect a spouse’s assets by including specific terms regarding future alimony in the event the marriage does not last. A signed prenup can safeguard premarital to ensure they remain separately owned during marriage. This means if a spouse has a high net worth of hundreds of millions of dollars before marriage, he or she would still be the sole owner of said money during marriage and if property division proceedings take place some day in divorce.

Another important issue to consider regarding high net worth prenuptial agreements is that child support and issues related to children’s best interests are off limits. Such matters would be addressed in court if a spouse later files for divorce. However, the parties may not limit or otherwise negotiate with respect to child custody or child support in a prenuptial agreement. A California family law attorney can further explain community property laws and clarify all aspects of a prenuptial or postnuptial contract.