Collaborative Practice Marin
Why, and When, Should We Create a Collaborative Pre-marital Agreement ("Pre-Nup")


               When couples marry in California, there are laws that automatically apply to their assets and income. For instance, income received as a result of either spouse’s labor, skill and efforts is community property and belongs to the marital partnership. Assets owned prior to marriage or received during marriage as a gift or inheritance is separate property unless it increases in value during the marriage due to either spouse’s efforts.

               These default rules can be changed in a premarital agreement. The process for creating such a contract is an important consideration. The relationship needs to be valued and the communication about financial topics facilitated to encourage open and heart felt discussions about the terms to be included. Instead of having a proposed premarital agreement prepared by one client’s attorney and delivered to the other client, in a collaborative process the couples and both attorneys work together to develop a Premarital Agreement. The process should be commenced well before the intended wedding date to assure the topics can be considered thoughtfully without any pressure related to timing.

               Collaborative practitioners begin the premarital agreement process with a meeting between the prospective spouses and drafting attorneys where we learn together about the clients’ personal and professional backgrounds, as well as their goals for their marriage as a couple and as individuals. Full disclosure of all assets, obligations and income is required regardless of process. During the meeting, we review each person’s financial information and ask questions to ensure understanding. A review of what California law provides is given so those rights and responsibilities are known. Then we identify topics to be included in the document and brainstorm options for solutions. After all possible options are identified, each is evaluated to determine viability and connection to the clients’ marital goals and interests. If consensus about the terms is reached, the attorneys will then prepare a draft agreement for review. If the couple needs time to further reflect on the options together, another meeting is scheduled to hear the results of this conversation. After the draft is read by all, there is a final discussion to confirm the document is understood and consistent with the couple’s intent.


Susan Stephens Coats is certified as a Specialist in Family Law by the State Bar of California Board of Legal Specialization.  http://www.collaborativepracticemarin.org/members/Coats


Photo Credit: Ann Buscho, Ph.D.


Do I Need a Premarital Agreement?

 

            A very frequent question I am asked in my practice is do I need premarital (or sometimes referred to as a Prenuptial) Agreement.  A premarital agreement can be important to someone for a variety of different reasons.  The first important aspect of deciding whether you want or need a premarital agreement, is to understand what such an agreement can accomplish and address.  A premarital agreement can address things like:

 

•           how you are going to treat assets and debts that each of you bring into a marriage (examples include real property, retirement assets, inheritance, student loans, support you pay for a prior relationship); 

 

•           how you want to treat assets your earn or are gifted to you during the marriage (this can include compensation, bonuses, stock option grants, inheritance, etc.);

 

•           how you are going to pay your day to day bills;

 

•           do you want to pay each other spousal support (or do you want to limit it in some way);

 

•           do you want to provide for each other in your estate plans;

 

•           do you want to make gifts to each other;

 

            A premarital agreement can be a very positive experience for a couple when it is approached openly and collaboratively.  The objective of a premarital agreement, in my view, should be to address both parties needs and concerns going into their marriage in a way that allows a couple to (1) start their lives together with a solid foundation of being able to talk to each other about difficult topics and (2) find their own solutions.  Often, people's needs and concerns arise from their past experiences (fears that arise from their parents bad divorce, their own bad divorce, or pressure from their families). 

 

            My feeling is that a premarital agreement should be something that is created together, addressing your respective needs and concerns, and reflecting who you are as individuals as well as who you want to be as a couple starting your lives together.  Such an agreement can help a couple set their expectations going into their marriage and allow them each to express how they visualize their marital partnership.

 

            If you decide you do want a premarital agreement, your next step would be to meet with a family law professional to talk about how to best go about creating a premarital agreement and the different processes and professionals you can utilize to help you.


Lissa Rapoport is a family law attorney in San Francisco and Marin County.  lrapoport@lpslaw.com

Photo Credit: Ann Buscho, Ph.D.




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About Collaborative Practice Marin

CPM is a community of legal, mental health and financial professionals working together to create client-centered processes for resolving conflict.  We are located in Marin County, California. 

Why Collaborative Divorce?

“Divorce is never easy but the collaborative process made mine bearable.  I had more control and therefore less stress and anxiety because I had an active role.”

~JF

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