There are many steps that go into planning a wedding, but thinking about divorce usually is not one of them. This could actually be a mistake. California couples may want to look ahead at more than just future jobs or children and, in particular, consider what property division should look like during divorce. This outlook might strike some as distinctly unromantic or pessimistic, but it can actually prove beneficial in the long run.
Financial problems and stress are the second most common cause of divorce. Many people go into marriage either blind about their significant others’ finances or only understanding very little. While talking about money will not necessarily prevent fighting over it, having this conversation can minimize tension around finances. Creating a prenuptial agreement is an excellent way to start this conversation, and it also gives both people an opportunity to protect personal assets.
A prenuptial agreement can also protect future assets. An entrepreneur in California who is developing a new business idea might choose to specify that future growth and earnings in the company are his or her separate property. Individuals who expect to receive significant inheritances may also want to specify the same.
Talking about money and property before marriage can help a couple create a strong foundation for open communication. However, having an open line of communication does not mean that a couple will not divorce. By already having an agreement that specifies which property is separate and what is considered marital, the difficult and sometimes emotional process of property division can proceed much more smoothly than it might have otherwise.
