marital agreement Archives - Lonich Patton Ehrlich Policastri

About forty percent of all marriage proposals occur during the proposal season – the time between Thanksgiving and Valentine’s day – with Valentine’s day as one of the most popular days of the year. While Valentine’s day brings a romantic feeling full of roses and chocolates, February is also the beginning of another season: divorce season. February has the highest rate of divorce filings out of the year, and there is a dramatic increase in referrals for divorce lawyers the day after Valentine’s day. Valentine’s day can elicit strong emotions and the statistics show that people follow their passions this month either by beginning or ending a marriage.

Staying married is not always easy or simple. In the United States, the divorce rate is around 50% and is even higher for second and third marriages. There are many complex issues that arise during marriage that a couple must navigate, particularly surrounding finances. Money is often the number one cause of conflict in a marriage, and as many as thirty percent of couples that fight about money end up divorced.

Typically, a premarital agreement is intended to create conditions that will encourage the growth and health of a marriage. The traditional agreement tends to focus on property owned before marriage by the couple as well as property that may be earned during the marriage. Although it seems like a premarital agreement would be counter-intuitive to romance, discussion of these important financial issues can help a couple grow. It can benefit the confidence in a relationship for couples to openly discuss their concerns and to plan together for the future.

Because of the cost, a premarital agreement may not be for everyone. The traditional factors a couple should consider include the total amount of wealth they possess, and whether there is an un-equal amount of wealth between the couple. Additionally, premarital agreements are gaining popularity with young people who have pursued careers that may lead to a lucrative profession. Protecting their personal efforts is an increasing concern amongst people who might rather not have the state determine their financial future.

If you are feeling swept up by Valentine’s day romance and are planning to propose, considering a premarital agreement may be a great benefit to your future. For more information and advice, please contact one of the experienced attorneys at Lonich Patton Ehrlich Policastri.

Please remember that each individual situation is unique, and results discussed in this post are not a guarantee of future results. While this post may detail general legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

California family law is quite complex. For those who are not familiar with the workings of California law, it may be very difficult to differentiate between the terms “premarital agreement,” “marital agreement,” and “marital settlement agreement.”

A premarital agreement is a contract that is executed between two prospective spouses. The premarital agreement, or “prenup,” is entered into in anticipation of marriage with the idea that it will become effective upon the marriage of the two prospective spouses. Premarital agreements often address issues of the parties’ present and future property rights. Premarital agreements must comply with certain formalities to be enforceable.

A marital agreement, or postnuptial agreement, is a contract that is executed by spouses during marriage. This type of contract affects the rights and obligations incident to an ongoing marriage, both during life and after death. Post-nuptial contracts can be broad in scope, laying out in comprehensive detail the parties’ rights and duties towards each other and the characterization of property. This category also includes “transmutation” agreements, which are contracts changing the property status of a specific asset from its current form to another form (e.g. separate property to community property). Like a prenuptial agreement, marital agreements must comply with certain formalities in order to be enforceable. Additionally, spouses entering into postnuptial agreements must comply with their fiduciary obligations and act with the “highest good faith and fair dealing” towards one another.

A marital settlement agreement (MSA) is executed as part of a dissolution of marriage or legal separation. The MSA typically addresses the parties’ ownership of marital property and other rights and obligations in relation to divorce or separation. Usually, an MSA is incorporated into a judgment of dissolution, and the rights and obligations of the ex-spouses are governed by the terms of the final judgment.

Note that the same rules governing these agreements between spouses also generally apply to domestic partnerships. For more information about prenuptial agreements, marital agreements, or marital settlement agreements, please contact us.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

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Premarital Agreements vs. Marital Agreements vs. Marital Settlement Agreements

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