Bohm Wildish: California Postnuptial Agreements – Singing a prenup (prenuptial agreement) is fairly common practice that everyone is aware of. Many couples decide to sign a prenup to figure out financial issues that will save headaches and protect individuals in the case of a split. But what about a postnuptial agreement? Are you considering signing one?
Postnups are becoming increasingly popular in California. Under the California Family Code, postnups can address marital issues and create divorce settlement terms. The California Family Code states that “either husband or wife may enter into any transaction with the other, or with any other person, respecting property, which either might if unmarried.” However, the California Family Code also makes it clear that the couple has a “fiduciary” relationship similar to a business partnership. Both spouses owe each other “a duty of the highest good faith and fair dealing.”
With those restrictions in mind, a postnuptial agreement can cover almost anything! For example, if your spouse gains a large sum of money (an inheritance, for example), the couple may wish to revisit the financial arrangement. Or maybe the couple no longer agrees on how to save for retirement or pay off large debts… these can be scenarios when signing a postnup would be worthwhile.
A postnup can also be very useful for couples who want to end their marriage but can’t do so under California’s laws. The postnuptial agreement will allow these couples to structure the settlement and divide property, income, etc. on their own terms.
Be sure to contact an experienced California family law attorney to assist with your postnuptial agreement.