At one time, there was a stigma concerning prenups. There were some who felt it was a roadmap for divorce. As prenups have become more popular, some couples, even for those who have not accumulated many assets separately or together, are comfortable with signing an agreement.
Avoiding prenups, some couples prefer to have one joint bank account for community property from which they will pay their living expenses and another account in their own name for separate property. That sounds easy, but it is not a sure thing that your separate property bank account will be separate property in the event you separate.
Why it is a Good Idea to Have a Prenup
Some common reasons couples may need a prenup are:
- One party may have more assets than the other one, and they want to be sure they can keep that as separate property.
- It is a second or third marriage, and both have children from their prior relationships. They want to keep their property separate for their children to inherit.
- It is a subsequent marriage and one or both parties had a messy divorce, and they don’t want to go through that again.
Benefits of a Prenup: Using the Collaborative Process
Preparing a prenup gives the couple the opportunity to really discuss financial issues relevant to marriage. They may be surprised about how each one has handled their finances in the past and sorting through their finances while preparing a prenup could be beneficial to both Parties. It can be a peaceful solution; it does not have to be an adversarial process.
In the collaborative approach, the couple can work with one attorney who can explain the relevant community laws and how having a prenup would help them with what the couple wants to accomplish financially during their marriage. Couples can think of a prenup as an insurance policy – it’s something you hope you never have to use, but you’re glad to have one if there’s a separation.
For more information about putting together a prenup, and how you can use the collaborative process for putting together your prenup, contact Kim Mediation and Law Center. You can call 213-351-1000 to schedule a free case evaluation.