Divorce is a leading cause of bankruptcy and one of the most avoidable destroyers of wealth among adults. Far too few couples go into a marriage with a clear picture of each other’s assets and obligations. Frequently, such an inventory is not conducted until and unless a marriage ends in divorce.

At the Law Office of Mitchell A. Jacobs, we understand that considering a prenuptial agreement can be a delicate subject. No one wants to enter a marriage planning on a divorce. Yet, half of all marriages do result in divorce. And too often the cause is arguments over money or nasty surprises about the amount of debt or other obligations a party was bringing to the marriage.

We see a prenuptial agreement as a rational way to take a look at each other’s assets, debts and obligations, and to create a plan for all eventualities. Such planning can not only avoid animosity during a marriage, it can reduce the risk of costly litigation in the event that a union does not last.

Frequently, a prenuptial agreement is sought by a spouse with significantly more assets than the other. And often both parties have been previously married. The truth is, getting married is one of the riskiest financial decisions a person can make. We don’t even buy houses without contracts. Yet we routinely enter into marriage with nothing more than a marriage license.

California is a community property state - meaning all property acquired during a marriage is subject to equal division. However, determining what is equal and what is communal property is open to rigorous debate. If you own a home that doubles in value in the next decade, is half of it considered community property? Additionally, a spouse can be awarded alimony in any amount for up to half the length of a short-term marriage and for an unlimited period of time for marriages lasting longer than 10 years.

Couples who do not want to be subjected to these default terms should elect to execute a prenuptial agreement. Like any contract, such agreements must obey certain legal requirements and restrictions to be enforceable. Each spouse should either be represented by an attorney or should sign a waiver of that right before signing a prenuptial agreement.

In order to afford the desired protection, a prenuptial agreement needs to be carefully drafted in accordance with California law. Poorly drafted prenuptial agreements will not be worth the paper they are printed on in the event of a contested divorce.

For discussion of prenuptial agreement services in California or the Los Angeles area, contact the Law Office of Mitchell A. Jacobs today for a confidential consultation.