While some younger couples in California may have too few assets to make a prenuptial agreement seem worthwhile, older people who are going into a second marriage might want one for a number of reasons. A prenup can do more than simply outline how property will be divided during a divorce. It can also address issues such as retirement spending and estate planning.
However, one of the main reasons to have a prenup is in case of a divorce, and ensuring that they are able to leave the marriage with the property they bring into it is one of the main reasons an older couple may want a prenup. The prenup can also specify how the divorce should unfold if there is one. Many couples prefer to attempt an alternative dispute resolution method such as mediation instead of going straight to litigation.
In some cases, one person might have significant retirement savings while the other does not. In that situation, the prenup might include an agreement to only take required minimum distributions from the smaller plan and rely on the larger one for most expenses. As part of the prenup, the couple can also specify that after they are married, they will create estate plans that leave some assets to each other and others to their children.
Couples who are already married may want to look into the possibility of creating a post-nuptial agreement. They may want to work with an attorney to draw up either a pre- or post-nuptial agreement to reduce its vulnerability to challenges. For example, an agreement could be thrown out if a judge thinks one party was coerced into signing or did not receive sufficient legal counsel. Younger people might want to consider a prenuptial agreement as well since under California law, they are supposed to equally split any assets acquired after marriage in a divorce.