Wedding Season: Is a Prenup Part of Your Wedding Plans?

June is the month when wedding season gets into full swing, which means April is crunch time for wedding plans. Increasingly, those wedding plans include a Prenuptial Agreement.

We read about celebrities and other wealthy individuals who wouldn’t dream of getting married without a carefully conceived Prenuptial Agreements to protect their fortunes. Other couples create their Prenuptial Agreements with provisos that leave us skeptical about the long-term stability of a marriage that’s based on these kinds of priorities:

• Who gets the pool boy, the gardener and the dog.
• The right to perform random drug tests.
• A claim on all frequent-flier miles should a spouse be unfaithful, plus severe financial penalties for incidents of unfaithfulness
• Thresholds on the amount of weight both partners can gain. If either exceeds the limit, he/she will be fined $500/pound.
• Limits on the number of football games the husband can watch with his BFFs; the wife’s constraints on the number of reality TV shows she’s allowed to watch.
• Assurances that the kids will be raised as vegans.

We can laugh at these silly stipulations that have little relation to the hard work of making a long-term commitment and sharing a life with someone. Thankfully, these are rarely the kinds of terms that we see our clients including in their Prenuptial Agreements.

Prenuptial Agreements are on the rise for a few very good reasons

• Couples are entering marriage later in life. They’re likely have gone to have graduated from college and often graduate school and have well-paying jobs. They’ve worked hard and accumulated assets—a home, a portfolio, a 401k. These are level-headed people who may have fallen in love and truly want to get married and live happily ever after, but they’re also practical enough to want to protect their assets.
• Divorce has created another demographic that is increasingly inclined to create Prenuptial Agreements. These couples, like the ones described above, also tend to be older and have accumulated assets that they want to protect. But there’s another big factor here—each partner is likely to be bringing children into this relationship as they merge and become one of America’s many blended families. Especially for older couples who are getting remarried later in life, there’s a likelihood that each spouse wants to protect the assets that he/she is bringing into the marriage and, ultimately, the inheritance of his/her own children.

While there is often some initial reluctance to talk about money and creating a contract before the wedding has even taken place, it is really a very logical thing to do. Marriage is a contract, and thoughtfully working through the process of creating this agreement is an excellent way to begin a marriage.

Attorney review: A very good idea

Because a Prenuptial Agreement deals with the property rights of the marrying parties, it is advisable for both parties to have separate and independent attorneys review the agreement. Certain provisions, such as giving up the right to spousal support, are unenforceable if the party who later wants support (in a divorce proceeding) did not have an independent attorney explain the agreement to that party. California Document Preparers has relationships with excellent local attorneys and can provide referrals for the reviews. Combining quality legal document assistance with legal advice is an excellent use of your legal dollars.

Are you and your fiancé considering a Prenup? We know this can sometimes be difficult for couples, so we’re sensitive to their needs. Contact California Document Preparers at one of our three Bay Area locations and schedule an appointment today! We’re helpful, compassionate and affordable.

Prenuptial Agreements: Who Needs ‘Em? Johnny Depp!

Johnny Depp and 30-year old model-turned actress Amber Heard are apparently divorcing after only 15 months of marriage. Heard filed for Divorce in May, citing irreconcilable differences and requesting spousal support. Two days after filing for divorce, she also filed domestic violence charges, accompanied by graphic photos of her bruised face and black eye she claimed were caused by Depp’s throwing his cell phone at her.

Depp: A prenup poster boy

To the surprise of everyone, this Hollywood couple did not have a Prenuptial Agreement, which leaves Depp extremely vulnerable. At 50, Johnny Depp is among Hollywood’s most enduring actors; he’s had an extraordinarily successful film career that began with the improbable Edward Scissorhands in 1990 and has continued steadily for 25 years.

Since this marriage only lasted 15 months, legal experts predict that Heard will have a hard time winning a hefty sum from Depp in court. One attorney described the marriage as more of a long date than a marriage. Nevertheless, they were married, and for whatever reasons, Depp failed to protect himself with a prenup. Depp not only asked the judge to deny Heard’s support request, he also asked that she pay her own attorney’s fees.

It may be worth it for Depp pay up

If Depp has to give Heard a million dollars to get rid of her, under the circumstances, many believe that would be a great deal. The alternative is a protracted legal battle that could stretch out over a long period of time, cost millions of dollars in legal fees and be followed closely in the media. It may be worth it for the wealthy actor to pay up to avoid a lengthy, unpleasantly public divorce.

Unlike Johnny Depp, most people haven’t amassed huge fortunes that they need to protect from greedy spouses. While every couple likes to think that their marriage will last forever, the reality is that an estimated 50% of US marriages end in divorce. For those over 50, the divorce rate has increased even more dramatically. Yet it’s a sociological face: people are inclined to mate. Divorced people remarry, but they are now older, have accumulated assets, children and heirs. Their financial landscapes are much more complex than they were when they first exchanged their vows some 20 or 30 years before.

For older couples on their second or third marriages, Prenuptial Agreements are becoming increasingly common. They’re the contract that defines the couple’s financial relationship.

Generally speaking, prenups are an important consideration for:

• Older couples, those on their second or third marriages, often with assets.
• People who have children from prior relationships.
• Those who expect future celebrity and significant income. Johnny Depp is likely wishing he’d taken the time to prepare and sign a prenup before marrying Heard, who was 20 years his junior.

Other considerations

• A prenup can protect your assets not just in divorce, but in death. A prenup could be worded to require your new spouse to waive the right to dissent or take an elective share in your estate.
• For young couples, a prenup provides the opportunity identify issues like joint efforts to pay off one partner’s student-loan debt, or how a partner might be compensated for leaving the workforce to care for their children.

Attorney review: A very good idea

Because a Prenuptial Agreement deals with the property rights of the marrying parties, it is advisable for both parties to have separate and independent attorneys review the agreement. Certain provisions, such as giving up the right to spousal support, are unenforceable if the party who later wants support (in a divorce proceeding) did not have an independent attorney explain the agreement to that party. California Document Preparers has relationships with excellent local attorneys and can provide referrals for the reviews. Combining quality legal document assistance with legal advice is an excellent use of your legal dollars.

Are you considering a Prenuptial Agreement? Call the California Document Preparers team today to make an appointment.

Same-sex Marriage: Do You Need a Prenuptial Agreement?

It’s been a little over a year since the Supreme Court passed the landmark civil rights decision in favor of same-sex marriage in Obergefell v. Hodges. For thousands of gay couples who have lived together for years, bought homes, raised their families and become involved in their communities, the decision was a long-overdue recognition of basic human rights.

While the Obergefell ruling was a cause for celebration, it’s important that couples be thoughtful about making the decision to get married. Just because they now have the opportunity to marry doesn’t necessarily mean that marriage is the right decision.

Something interesting’s happening here: Fewer cohabitation agreements since legalization

Before legalization of same-sex marriage, many partners contemplating a long-term cohabitation relationship–especially those with considerable assets–would often create detailed cohabitation agreements to protect those assets.

Yet a recent American Association of Matrimonial Lawyers survey found that 70% of respondents noted a decrease in cohabitation agreements between same-sex partners since marriage has been legalized. This is a significant decrease in just one year and seems to indicate that those couples who were cautious about protecting their assets as they entered into cohabitation agreements are less cautious when it comes to marriage.

Ironically, once marriage was legalized, as the data is showing, couples are marrying without much thought to formalizing the same issues that they carefully documented when they began their live-in relationship many years before.

In same-sex marriage world, Prenuptial Agreements replace cohabitation agreements

Gay couples contemplating marriage should be cautious and thoughtful, making sure that they’re marrying for the right reasons—not just because they now can. They should think seriously about whether a Prenuptial Agreement is advisable—marriage is a contract that comes with emotional and financial responsibilities for every couple—regardless of sexual orientation.

Read other California Document Preparers’ blogs about Prenuptial Agreements

Prenuptial Agreements: Not Just for Those with Significant Assets

Prenuptial Agreements: Time for Kiss and Tell

Are you getting married and contemplating a Prenuptial Agreement? An increasing number of couples, especially those who are older and have accumulated assets, are making prenups an important part of their wedding planning. The California Document Preparers team helps you through every step.

Prenuptial Agreements: Not Just for Those with Significant Assets

We’re rapidly approaching wedding season, and these days, many Bay Area couples are including a prenuptial agreement in their wedding plans. While most couples enter a marriage with the intention of spending the rest of their lives together, half of all marriages in the US end in divorce. It may seem like sabotage to be thinking ahead to the dissolution of a union before it’s even become official, but many savvy couples are also pragmatists and know that a prenuptial agreement can serve as an insurance policy against a worst-case scenario.

A prenup can protect even the smallest savings accounts, and it can also protect against the limitless worth of future investments. Many people enter marriages at early stages in their careers. The median marriage age is 25 for women, and 26.8 for men, while careers are believed to peak at age 35. It is important that there is clear, written outline, before marriage, to the entitlements of money as it grows.

Let’s imagine this scenario of a newly married couple

The husband goes back to school to get an MBA, and his wife works hard to put her husband through school—a considerable contribution to the family’s future. With an MBA, the husband will be well prepared to jumpstart a successful business career which would not have been possible without his wife’s sacrifice and hard work. In a prenup, the wife can actually specify how much of the future earning of her husband’s career she is owed, and for how long. The husband can protect himself as well, by placing time, dollar or percentage limits on what he would owe.

Prenups can be customized and negotiated for each unique situation

Prenuptial agreements can actually leave both parties in a better situation than they would have otherwise been. Let’s suppose the wife has a substantial amount of family wealth, and the husband brings no money to the relationship. One way to structure the prenup would be to limit the husband’s claim on the wife’s family assets to a certain dollar amount that would allow him to continue his lifestyle while they were married. This is mutually beneficial; the husband can continue his lifestyle yet it limits his access to the family fortune.

Many of our prenup clients are older, they’ve established careers and this may be their second or third marriage. Their lives have become more complex; they’ve accumulated assets and have children and grandchildren they want to protect. There’s also the likelihood that their future spouse also has significant assets and children of his/her own. Creating a prenup to identity how those assets will be distributed in the event something happens to them is laying the foundation for good communication that will serve them well throughout their marriage.    

That difficult conversation about money . . .

One of our clients told us that the most difficult conversations she and her husband had were about money. A prenup forces couples to have a clear, straightforward conversation before getting married, discussing how much money each is bringing into the relationship and how much each expects to inherit. Other key parts of this conversation include identifying debts and financial goals. Many couples these days live together before marriage and are used to sharing expenses, but don’t really stop to address the larger economic picture. As with a business, each shares responsibility for their mutual long-term financial success, and a prenup is a good place to start.

Attorney review: A very good idea

Because a Prenuptial Agreement deals with the property rights of the marrying parties, it is advisable for both parties to have separate and independent attorneys review the agreement. Certain provisions, such as giving up the right to spousal support, are unenforceable if the party who later wants support (in a divorce proceeding) did not have an independent attorney explain the agreement to that party. California Document Preparers has relationships with excellent local attorneys and can provide referrals for the reviews. Combining quality legal document assistance with legal advice is an excellent use of your legal dollars.

Are you and your fiancé considering a Prenup? We know this can sometimes be difficult for couples so we’re sensitive to their needs. Contact California Document Preparers at one of our three Bay Area locations and schedule an appointment today! 

Love is in the Air—Increasingly Accompanied by a Prenup!

It’s wedding season—that time of year when people are happily planning the ceremonies that will formalize their relationships for a lifetime—at least that’s the plan. They’re caught up in the celebrations—showers, gatherings of families and friends, the bacchanals of bachelor and bachelorette parties. But these days, we’re seeing pragmatic couples adding one more item to their wedding planning to-do lists: a Prenuptial Agreement.

While few couples are thinking about divorce as they plan their weddings, an estimated 50% of all marriages in America end up in divorce. A Prenuptial Agreement establishes the property and financial rights of each spouse in the event of a divorce. While this may seem like a negative way to be starting a relationship, couples who’ve been married or in long-term relationships know there’s a lot of negotiation and compromise that takes place as they learn to live together and raise a family. Creating this initial contract together a good place to start.

Who needs a Prenuptial Agreement?

When George Clooney married human-rights attorney Amal Alamuddin, he apparently did not require her to sign a Prenuptial Agreement. While Amal is a partner in a prestigious British law firm, she can hardly match her husband’ earning power. Clooney consistently chooses meaningful films that are box-office hits, earning him an estimated $20M/film. Clooney has lavish homes in Venice, LA and now in Oxfordshire and is worth some $220M. Yet if we can believe what we read in the tabloids, unlike so many of his wealthy celebrity colleagues, Clooney did not protect himself with a Prenuptial Agreement.

We don’t have George Clooney’s problem

Unfortunately, most of us don’t have $220M in assets that we need to protect from a potential vindictive spouse. These days, however, many couples are not so young when they get married—they may be in their late 20s or early-mid 30s. They’ve graduated from college and grad school, held well-paying jobs, built careers that will continue to reward them with a growing income. They have acquired assets and own their own homes. They’ve worked hard, are pragmatic and independent and feel the need to protect themselves when they marry; a Prenuptial Agreement is becoming increasingly common for many of these couples.

Blended families create the need to protect assets for children

America’s high divorce rate has also fueled the need for prenups. Many divorced couples remarry, and when they do, things often get a lot more complicated. They’re entering these new marriages--not just with assets, but with dependents. They want to protect their assets so that if something happens to them, it’s their children who will become the beneficiaries—not necessarily the new spouse and his/her progeny.

Attorney review: A very good idea

Because a Prenuptial Agreement deals with the property rights of the marrying parties, it is advisable for both parties to have separate and independent attorneys review the agreement. Certain provisions, such as giving up the right to spousal support, are unenforceable if the party who later wants support (in a divorce proceeding) did not have an independent attorney explain the agreement to that party. California Document Preparers has relationships with excellent local attorneys and can provide referrals for the reviews. Combining quality legal document assistance with legal advice is an excellent use of your legal dollars.

Our California Document Preparers team is sensitive and skilled at assisting couples with Prenuptial Agreements. If you have questions, please contact us at one of our three Bay Area locations.