The very last thing most couples want to think about while planning a wedding is the financial side of marriage, particularly planning for the possibility that a marriage may end. Most conversations focus on venues, invitations, flowers, guest lists, and outfits. Money usually isn’t part of the excitement, so it gets pushed aside. Financial planning can feel unromantic and complicated, and is often delayed or avoided altogether.
Despite this, financial issues play a significant role in nearly every part of a marriage. Decisions about income, property, debt, and long-term financial responsibility affect daily life and future stability. Addressing these issues before marriage allows couples to establish clarity and reduce uncertainty. For many couples, working through a prenuptial agreement is simply one way to have those conversations early and clearly.
Prenuptial Agreements
A prenuptial agreement is a written contract signed by two parties prior to marriage. It sets forth how certain financial matters will be addressed in the event the marriage ends by divorce or death. Prenuptial agreements commonly address the division of property, responsibility for debts, and the issue of spousal support.
Every prenuptial agreement looks different because every couple’s situation is different. That said, the purpose is to define financial rights and obligations in advance rather than leaving those determinations solely to state law. Most prenuptial agreements begin with disclosure of each party’s assets and debts. This usually includes bank accounts, retirement funds, real estate, investments, valuable personal property, and existing debts.
A prenuptial agreement may also address how certain property will be treated during the marriage, not just upon divorce. In some cases, couples include provisions related to practical matters, such as responsibility for pets.
However, a prenuptial agreement cannot determine issues of child custody or child support. Those issues are reserved for the court and must be decided based on the best interests of the child at the time of separation or dissolution.
California’s Default Prenup
Absent a valid prenuptial agreement, California couples already have a default set of rules. California is a community property state, meaning that, in general, assets and debts acquired during the marriage are divided equally upon divorce.
As a result, the California Family Code effectively establishes default financial outcomes for married couples who do not enter into a prenuptial agreement. These outcomes may not reflect the parties’ individual expectations or financial circumstances. A prenuptial agreement gives couples the ability to adjust those rules instead of relying on a one-size-fits-all system.
Addressing the Stigma Around Prenups
Prenuptial agreements frequently face two misconceptions: that prenups are only for wealthy or high-profile couples, and that signing one means a couple expects the marriage to fail. Neither assumption accurately reflects the purpose or function of prenuptial agreements.
Prenups are not just for celebrities or people with significant wealth. Prenuptial agreements are available to couples across a wide range of financial situations. They may be particularly useful where the parties enter the marriage with unequal assets, own real property, operate a business or professional practice, expect future inheritances, carry significant debt, or have children from prior relationships. A prenuptial agreement allows couples to define what fairness looks like for them, rather than relying entirely on default legal rules. There is no single profile for someone who “needs” a prenup.
The idea that a prenup signals a lack of commitment is also misplaced. In practice, creating a prenuptial agreement requires couples to talk openly about finances. Those conversations can be uncomfortable, but they are often necessary. A prenup does not plan for divorce. Instead, it documents agreements made when both people are communicating clearly and making decisions together.
For many couples, a prenup strengthens communication rather than undermines it. The process of negotiating a prenup often requires detailed discussions. Avoiding financial conversations altogether can create confusion or resentment later on. Addressing these issues early helps couples start their marriage with clearer expectations.
Requirements for Prenuptial Agreements
Creating a prenuptial agreement generally starts with clarifying the financial goals the parties want the agreement to address and identifying areas where they may wish to deviate from California’s default rules. This requires thoughtful discussion about how finances will be handled during the marriage and in the event it ends. Open communication between future spouses is critical, and some couples find it helpful to work with a counselor to support those conversations.
California law imposes specific requirements for prenuptial agreements to be enforceable. Each party must provide full and fair disclosure of their financial circumstances. In addition, each party must be represented by independent legal counsel or execute a written waiver of that right. These requirements are intended to reduce the risk of coercion and ensure that both parties understand the legal consequences of the agreement. Failure to comply with these statutory safeguards can render a prenuptial agreement unenforceable.
Prospective spouses considering a prenuptial agreement should also take sufficient time to review and negotiate its terms. Agreements signed under pressure or without adequate opportunity for review may be subject to later challenge.
Postnuptial Agreements
For couples who are already married and did not execute a prenuptial agreement, a postnuptial agreement may be an alternative. A postnup is entered into at any point during the marriage and can address many of the same financial issues as a prenup.
Postnuptial agreements are often used when circumstances change during a marriage, such as the acquisition of significant assets, receipt of an inheritance, or significant changes in income. As with prenuptial agreements, postnuptial agreements must meet statutory requirements to be enforceable.
Final Thoughts
Marital agreements, whether prenuptial or postnuptial, serve as tools for financial planning and risk management. When properly drafted, they can clarify expectations, reduce future disputes, and provide a framework tailored to the parties’ circumstances rather than relying solely on default statutory rules.
While discussing finances before or during a marriage may be uncomfortable, those discussions are often necessary to ensure informed decision-making. Clear agreements reached in advance can help reduce uncertainty and conflict in the future.
If you are considering a prenuptial or postnuptial agreement, the Law Offices of Steven B. Chroman can assist you in navigating the legal requirements and drafting an agreement that reflects your circumstances. Contact our office at (661) 255-1800 or email office@chromanlaw.com to schedule a consultation.
This post is for informational purposes only and does not constitute legal advice. Please call our office to schedule a consultation at (661) 255-1800.