When to Consider a Prenuptial Agreement
- You and your partner are individually secure in your finances
- You or your future spouse have a significant difference in financial circumstances
- You are entitled to a large or substantive inheritance
- You own your own business
- You own interest or equity in a family-owned business or other valuable venture
- You own a home that was purchased prior to marriage that you plan to inhabit after the marriage
- You or your future spouse have substantial debt
Why You Should Speak to an Estate Planning Attorney
You could use a prenuptial agreement to clearly define which assets should remain individual assets, making probate and inheritance disbursements easier for your heirs. However, a prenuptial agreement should never be considered a replacement for a will or trust. While you could create a prenuptial agreement without a will—or a will without a prenuptial agreement—you must ensure that these documents do not conflict with one another. Any apparent conflict could be misinterpreted by a court or used by a prospective beneficiary to contest the estate.
People planning to tie the knot are often reluctant to discuss prenuptial agreements and for good reason. When you are about to embark on an exciting new future with a loved one, the last thing you want to imagine is a divorce. However, prenuptial agreements have other purposes. Your prenuptial agreement could complement an estate plan, ensuring that your children and future heirs are afforded a legacy that is free from conflict and California’s difficult probate system.
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