When to protect assets with a premarital agreement
For many Californians, getting married requires that they decide if they should consider a premarital agreement. Understanding the value of these agreements before entering a marriage can be critical. In some situations, considering a prenup might be a reasonable question. In others, it is a key strategy to protect assets accrued before the marriage.
With a premarital agreement, the circumstances will dictate its importance. If a person is approaching their second marriage and children are involved, a premarital agreement can avoid complications. Blended families can spark confusion regarding how property is divided. For example, the new spouse could be named as the beneficiary of assets if the former spouse dies.
Businesses should also be shielded with a premarital agreement. A spouse who is entering the marriage with a family business should think about protecting it. This is true whether it is a business that has been in the family for generations or is a relatively new business. Intellectual property rights are a consideration as a divorce can ruin a lifetime of hard work. Mitigating against that possibility with the legal protection of a premarital agreement could be a wise step.
Often, one spouse will start a marriage with more assets. When this is the case, a premarital agreement is like a protective tool. The person with more assets does not need to have millions. Someone just starting out with what they hope is a bright future should understand the value of premarital agreements. Asking for a premarital agreement, frequently referred to as a prenuptial agreement, does not mean there is a plan in place to divorce. It is simply a way to be protected if the marriage does not work out. Discussing various aspects may be vital, and legal assistance might be needed.