Prenuptial agreements, commonly referred to as prenups, outline how assets and debts are divided in the event of a divorce. In California, the courts can enforce prenups as long as both parties voluntarily enter into the agreement and its provisions are otherwise legally enforceable.
In recent years, prenups have become popular among couples seeking to protect their assets before marriage. Understanding the enforceability of prenuptial agreements in California is crucial for anyone considering this legal arrangement. The state has specific laws and standards that must be adhered to, and without meeting these standards, the courts may invalidate a prenup.
You Must Voluntarily Agree to a Prenup
Prenuptial agreements must be entered voluntarily by both parties to ensure their enforceability in California. Each party must willingly and freely consent to the terms without coercion, duress, or undue influence.
If a party can prove that they were pressured or manipulated into signing the agreement, the court may invalidate the contract. For example, presenting a prenuptial agreement shortly before the wedding date, creating a situation where one party feels they have no choice but to sign, can be considered coercive. The voluntary nature of the agreement is crucial as it reflects both parties' genuine intentions and consent to the outlined terms.
The 7-Day Rule in California
California law requires a minimum seven-day waiting period between presenting and signing the agreement. This waiting period prevents rushed decisions and allows both parties to seek independent legal advice.
By honoring this timeframe, couples can ensure that their agreement reflects a mutual and voluntary commitment, thereby upholding its enforceability in court.
You Must Disclose All Assets & Debts
If you wish to enter a prenup in California, you and your fiancé must disclose your assets and debts to each other. This requirement ensures that both parties comprehensively understand each other's financial situations, promoting fairness and transparency.
Failure to disclose significant financial information can invalidate the prenup because it undermines the foundation of trust and mutual understanding necessary for a fair contract. On the other hand, transparency helps prevent future disputes and potential claims of deception or fraud. It also allows for equitable provisions within the agreement because both parties negotiate with full awareness of their financial landscape.
Your Prenup Must Contain Legal Provisions
A prenup can’t contain illegal provisions or those that violate public policy. For example, any clause that attempts to dictate child custody or child support arrangements will not be enforceable. The court prioritizes the child's best interests, and such matters are decided based on current circumstances during a divorce, not predetermined terms in a prenup. Additionally, provisions that promote divorce, such as financial incentives for ending the marriage, are considered contrary to public policy and will be invalidated.
Including illegal provisions can jeopardize the entire prenuptial agreement, leading to parts or even the entire document being deemed unenforceable. Couples must draft their prenuptial agreements carefully, ensuring that all terms comply with California laws. Consulting with independent legal counsel can help both parties understand what can and can’t be included in their agreement, safeguarding its validity.
Common Issues & Challenges
No prenup is guaranteed to be enforceable. Certain issues can challenge its enforceability even if you think you did everything right when you signed your prenup.
Unconscionability
An unconscionable prenuptial agreement is excessively one-sided or unfair to one party, and California courts will not enforce such agreements. When determining unconscionability, the court will consider factors such as the timing of the agreement, the financial disparity between the parties, and whether one party was disadvantaged during the negotiation process.
Changes in Circumstances
Significant changes in circumstances, such as the birth of children or substantial changes in income, can impact the enforceability of a prenuptial agreement. While the agreement may address these potential changes, it’s essential to periodically review and update it to accurately reflect the current situation.
Public Policy Considerations
As previously discussed, certain provisions in a prenuptial agreement may be unenforceable if they violate public policy. This includes issues involving child custody and child support but isn’t limited to these topics.
Should public policy change from when a prenup was originally created, a judge may not enforce it if certain provisions violate any public policy created in the intervening period.
Contact Us for Legal Assistance
While prenups aren’t impervious, a well-prepared one can stand the test of time and become useful during a divorce. When each soon-to-be spouse has something that they wish to protect, a prenup can be an effective way to answer difficult legal decisions ahead of time.
If you are considering a prenup, rest assured that our legal team at Arnold Law Group, APC can provide the legal assistance you need. With more than 30 years of combined experience, our lawyers have what it takes to address your legal needs.
Reach out to us today to learn more about our services.