I Signed A Prenup... Now What?

A prenup starts to take effect the minute you get married. However, its central relevancy is triggered later by specific events like divorce or the death of a spouse. At that point, its provisions become important in determining the division of money and property and the payment of spousal support.

A Prenup Works in the Background When You Get Married

If you sign a prenup but never get married, it has no effect because it only addresses issues related to married couples. But once you do get married, it's an enforceable contract.

In California, all the income either spouse earns during marriage is considered community property. A prenup agreement will often change this default rule to allow a spouse to keep some or all his or her income earned after marriage as separate property. Property from before marriage is also each spouse's separate property.

Community property is split equally in divorce, but if the prenup states that there isn't any community property, there's nothing to split. This may not come up in married life because your day-to-day financial decisions aren't based on this property classification.

You Are Held to What You Agreed to for Your Entire Marriage

Once you sign a prenup and get married, it applies for the length of your marriage, whether that's five days or fifty years. You can't undo it on your own. The only way to undo it is if you both agree in writing to change or revoke it.

Your life circumstances, opinions about financial matters, and feelings about your spouse may change during your marriage. But your prenup agreement's terms are whatever you agreed to when you signed it before marriage.

Keep in mind that by not having a prenup, you are subject to the rules for married couples created by the California legislature, including the rules for splitting property in a divorce. These laws can be changed by the legislature.

A Prenup Resolves Issues in Advance

Just as marriage is a joining of finances, the end of a marriage is a split of finances. Whether through divorce or death, money and property have to be divided.

A prenup can resolve divorce issues by stating how property is to be divided and how much spousal support will be paid to whom and for how long. Because you agreed on these issues in your prenup, you don't have to argue over them in family court.

In estate planning, each spouse may want to will their property to loved ones or a specific cause. A prenup agreement can work in connection with a will or a trust to make sure your wishes are followed. This is especially true if you want assets to go to someone other than your spouse.

One of You Has to Present the Prenup Agreement as Evidence

A prenuptial agreement is a contract between a married couple. No one else other than the lawyers who assisted you may know it exists. It doesn't get filed anywhere. If you get divorced, the court will not have a copy unless you provide one.

When you submit the prenup to a court in a divorce, it's the evidence and proof of your marital financial arrangement. Since you both agreed to and signed this contract, it will be hard for either of you to argue that there should be a different outcome.

If there is a dispute about who should get your property when you die, a prenup can resolve what you have a right to give away.

Keep in mind that if you lose your prenuptial agreement, you will have no proof that you and your spouse agreed to specific terms for your marriage. You will then have to follow whatever the default rules are in California. Because it can be decades between the time you sign a prenup and the time you need to use it, it's essential to keep it in a safe but accessible place.