Prenuptial agreements or premarital agreements in California are governed by California’s Uniform Premarital Agreement Act.  This an agreement made by a couple prior to marriage that will automatically be effective upon marriage. This article will examine what can be accomplished and what is unenforceable in a premarital agreement.

 

Can I punish my spouse financially if he/she cheats?

 

Some couples may want to include a financial punishment for the other spouse who cheats, and this is commonly referred to as an infidelity clause.  California is a no-fault divorce state, so “fault” such as infidelity will not be a relevant consideration to a California court. As such, California courts will not enforce a financial punishment against a spouse for cheating.  

 

Can we negotiate child support or child custody in the prenup?

 

No, a court is going to look at the best interest of the child standard for child support and custody, and visitation rights so a premarital agreement will not be binding with respect to those issues.  

 

What are some topics where a prenup can be helpful?

 

• Each spouse’s rights to property.  

• The right to manage or control property, such as buying, selling, using, etc.

• What is going to happen to property in the event of death, divorce, etc.

• Spousal support in the event of divorce (special rules apply)

 

Is there an alternative to a prenup?

An irrevocable trust is an estate planning mechanism that can be used to protect property.  A revocable trust permits the grantor to place the assets under the control of a trustee, then who administers the assets for the benefit of beneficiaries named by the grantor.

Unfortunately, an irrevocable trust has a number of disadvantages, so it may not be the right mechanism for you.  The grantor loses ownership of the trust property, so you generally won’t be allowed to change your mind and take the property back.  Additionally, there are taxation issues involved with an irrevocable trust that may not be advantageous. Consult with a Vallejo attorney to see whether an irrevocable trust is right for you.

 

How is a prenup changed?

After marriage, a premarital agreement can be changed only by a written agreement signed by both the parties, so consider carefully the terms you are including.