A prenuptial agreement, or a premarital agreement, is a legally binding contract that a couple enters into before their marriage. It can address what happens to property and whether a spouse will receive alimony in the event of a divorce. Contrary to popular belief, prenuptial agreements are not just something that celebrities use. Instead, they are a vital tool for risk management, which can protect each spouse’s property, preserve generational wealth, and provide financial security. This allows future spouses to enter their union with confidence and certainty.
How Do Prenuptial Agreements Work?
Prenuptial agreements allow couples to preempt and avoid the existing laws of community property, which normally governs how property is divided when couples divorce. Community property law generally gives each spouse an equal right to all property acquired during the marriage, including income, real estate, stocks, business interests, and retirement savings. Courts will take the total value of community property and make an equal distribution of property between the spouses. Typically, all property that a spouse had coming into a marriage remains the separate property of that spouse and is not subject to division.
In contrast, a prenuptial agreement allows future spouses to agree to ownership rights of any property acquired before or during a marriage, can address alimony, and can contain other terms that do not violate the law or public policy. Not only do prenuptial agreements protect a person’s wealth, but they also simplify the legal issues a couple must resolve if they divorce.
Prenuptial Agreements Protect Children from Prior Marriages
For people who have been married before, a prenuptial agreement can protect children from prior marriages. By preemptively designating property as separate property, a person can ensure that there are assets for the children to inherit. Also, a prenuptial agreement can provide for the creation of a will or marital trust that can ensure those children are taken care of.
Viloria, Oliphant, Oster & Aman L.L.P., Family Law Representation
If you are interested in protecting your wealth and entering a marriage with confidence, you should consider a prenuptial agreement. At Viloria, Oliphant, Oster & Aman, L.L.P., our family law attorneys provide client-focused legal counsel and can help create a clear, enforceable prenuptial agreement. With our years of experience and excellent reputation, we can help you protect your rights. Call Viloria, Oliphant, Oster & Aman L.L.P. today at (775) 227-2280 to schedule a consultation or contact our office through our website.