As a California family law attorney, I often see prenuptial agreements get a bad reputation. To many, the term “prenup” implies a lack of trust or a sign that a couple is already planning for divorce. But in reality, a well-drafted prenuptial agreement is one of the most practical and proactive tools couples can use before marriage.
A prenup isn’t about predicting failure. It’s about protecting each person’s rights, promoting transparency, and reducing potential conflict in the future. So, when is a prenuptial agreement a good idea? Let’s explore.
When One or Both Partners Have Significant Assets
If either party enters the marriage with real estate, investment accounts, a business, or other high-value assets, a prenup is worth serious consideration. California is a community property state, meaning any assets acquired during marriage are generally split 50/50 in divorce. A prenup can protect separate property from being inadvertently commingled or divided.
For example, if one partner owns a home prior to marriage, a prenup can clarify that the property remains separate even if the couple lives there together or pays down the mortgage using community funds.
When One Partner Has Significant Debt
Just as assets can be protected, so can liabilities. A prenuptial agreement can specify that each spouse is responsible for their own student loans, credit cards, or other debts incurred before or during the marriage.
This clarity is especially important in cases where one person is entering the marriage with substantial financial obligations that the other partner did not incur.
When One or Both Partners Have Children from a Prior Relationship
Prenuptial agreements are essential in blended families. If either party has children from a previous relationship, a prenup can help ensure that specific assets are preserved for those children.
Without a prenup, your estate may not be distributed as intended, particularly if you pass away or divorce. A prenup, along with a solid estate plan, can help ensure both your spouse and your children are cared for according to your wishes.
When One Partner Owns a Business
If you’re a business owner, your company could be considered community property unless protected by a prenuptial agreement. That means your spouse could be entitled to a share of the business’s value if you divorce, even if they had no involvement in running it.
A prenup can define how the business will be valued and divided, or protect it as separate property altogether.
When You Want to Set Clear Expectations
Marriage is not just an emotional union it’s also a legal and financial partnership. Having open, honest conversations about money, expectations, and responsibilities can strengthen your relationship.
A prenup doesn’t just define what happens if you divorce; it can clarify how you’ll handle finances during the marriage, including:
- How you’ll share living expenses
- Whether income will be kept separate or pooled
- Who will manage which assets
Smart Tool for YOU?
Prenups aren’t for everyone, but they are a smart tool for many. They require full financial disclosure and mutual agreement, which can actually help build trust and communication. And while no one enters a marriage expecting it to fail, planning ahead can prevent unnecessary conflict if the unexpected happens.
If you're considering a prenup, talk to a family law attorney early (ideally at least six months before your wedding). The agreement must be voluntary, and rushed or coerced prenups can be invalidated in court.
Ultimately, a prenuptial agreement is not about doubting your relationship. It is about having candid conversations with your partner to help protect your future, whatever it may hold.