Most people create prenuptial agreements with the main goal of protecting assets. A prenuptial agreement can include terms that protect a spouse’s property from division. Prenuptial agreements can be especially important for many couples in California, as the state laws that pertain to community property law will divide all shared property down the middle in a divorce case, even if this is not what is fair for a spouse.
A prenuptial agreement can include terms involving:
Protections against other spouse's debts. A prenuptial agreement can identify and separate one spouse's debts from the community. This can prevent one spouse from absorbing the other’s debts in a divorce.
Protections of assets. Although a judge cannot touch separate property, such as inheritance or gifts, all other assets acquired during the marriage are subject to division. The exception is if a prenuptial agreement specifically protects these assets from going to one spouse. A prenuptial agreement can allow one spouse to protect heirlooms, family property and other assets.
Property distribution during divorce. A prenuptial agreement can also include details on how the couple will divide community property and debts in the event of a divorce. If the marriage does end, a judge will honor the terms of a valid prenuptial agreement rather than creating a new decree for property division.