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When to Consider a Prenup

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The last thing you want to think about when you've fallen in love is the possibility that it will end in divorce. The truth is that prenuptial agreements make a lot of sense, especially if you have children from a previous relationship or you're wealthy.

With a prenup, you can open up about important discussions and be honest about your financial picture. Here are the scenarios where you should consider a prenup.

  • You own a business, particularly a new company that might greatly increase in value down the road.
  • You own a home in a particularly high appreciating real estate market.
  • You or your spouse are expecting a gap in income due to going back to school, or staying home to raise children. A prenup can ensure that the partner who paid for the other's education is addressed in the event of a divorce.
  • You want to keep certain assets separate, such as a vacation home or a rental property.
  • You have other beneficiaries, such as children from a previous relationship or aging parents who you want to ensure are cared for.
  • You expect a large inheritance. While inheritances are considered separate property, if community property income is comingled with the inherited asses; for example, an investment account, it can get complicated.
  • You and your fiancé have a big difference in assets or debt. Usually, what assets are brought into a marriage remain separate, but things get murky when spouses use community property income to pay off something such as pre-marriage student loan debt.
  • You're worried about your partner's spending habits. If your partner charges up a lot of debt and you get divorced, you can find yourself saddled with half of their debt. Unpaid taxes and liens are a major cause for concern.
  • You want to address spousal support upfront, this way conflict can be reduced in the event of a divorce.

To discuss drafting a prenup, contact us to schedule a free initial consultation with a Los Angeles family law attorney!

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