What to Know About Prenuptial Agreements : Part 2
It is very important for each party entering into a prenup in California to disclose all of their assets, debts, income and expenses.
See What to Know About Prenuptial Agreements : Part 1 for an explanation of what is a prenup.
A prenuptial agreement must comply with certain legal criteria in order to be considered legal and binding. In the event that a couple signs a prenup and later decides to separate or divorce, it is possible that one spouse may challenge the validity of the prenuptial agreement in court. The court will then rule on whether or not the prenuptial agreement is binding and enforceable. If the court rules that the agreement is not enforceable, then the parties are not required to comply with its provisions.
This is why it is important to decrease the likelihood of the prenuptial agreement being challenged in court. One way to do this is to ensure that both parties disclose all of their assets, debts, income and expenses. It is a bad idea to attempt to hide something from your future spouse.
Here’s why…
When prenups are challenged in court, one of the arguments a spouse may bring is a claim that they weren’t aware of the other party’s assets, expenses or debts and had they known that information they would have never entered into the prenup agreement. They can argue that because they didn’t have certain information prior to signing the prenup, they were misled and therefore the prenup should be unenforceable. In order to avoid your prenup being challenged based on this argument, make sure that there is full transparency and that you take the time to disclose all the information about your income, expenses, assets and debts. There are specific forms that can be used to make these disclosures and specific language that should be included in your pre-nuptial agreement regarding what has been disclosed. This could potentially save you a lot of time and money by avoiding the costs associated with the other party challenging the validity of your prenup in court.
Stay tuned for more blog posts about how to decrease the likelihood of your prenup being challenged in court.
If you have any questions about prenup agreements or what disclose forms you need to use, please call us for a free 30-minute consultation.
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Attorney Jeffrey P. Mach, Jr. is a Certified Family Law Specialist in the state of California. Mr. Mach is not a specialist in any other state.
Information provided on our website does not constitute legal advice. This blog and video are strictly for informational purposes and not for the purpose of providing legal advice. Please be advised, the law is constantly changing. If you need legal advice, please contact your lawyer and they can answer your legal questions with respect to a particular issue or problem. Nothing posted or anything herein forms an attorney-client relationship. This a communication/solicitation/advertisement. Mach Law does not make any guarantees, warranties, or predictions regarding the result of representation.