What Are The Advantages Of A Premarital Agreement?
The premarital agreement is a powerful tool. With it, the parties can override California’s community property presumption and keep separate property separate. A good example of this would involve earnings. In California, wages and earnings acquired after the date of marriage (and before the date of separation) are community property. However, the parties can stipulate in a premarital agreement that all wages and earnings shall be separate property. Another area where a premarital agreement is helpful is where one party owns a house prior to the marriage and this is where the couple choose to live after they get married. The house is the separate property of the person who bought it. However, the community can earn an interest in the house by virtue of making the mortgage payments with the couple’s earnings. In order to avoid this outcome, the parties can stipulate in a premarital agreement that the community will not earn an interest in the house as a result of community earnings cont
