Understanding What Types of Assets Can Be Included in a California Prenup
Understanding What Types of Assets Can Be Included in a California Prenup
A prenuptial agreement (prenup) is an important legal tool that helps couples clarify financial expectations before marriage. In California—a community property state—these agreements are particularly useful for protecting separate property, defining how assets will be divided, and avoiding future disputes. Understanding which types of assets can be included in a prenup can help you make informed decisions about your financial future.
Assets Commonly Included in a California Prenup
1. Real Estate
Homes, vacation properties, and investment real estate can all be included in a prenup. Couples often use the agreement to specify ownership rights, determine how property appreciation will be handled, or decide whether certain properties will remain separate.
2. Bank Accounts and Investments
Cash savings, checking accounts, stocks, bonds, and retirement accounts can be listed in a prenup. This ensures that each spouse’s existing and future investments are properly categorized as separate or community property.
3. Business Interests
If one or both spouses own a business, a prenup can protect the company from division during a divorce. The agreement can define ownership shares, control, and how business profits or losses will be treated.
4. Debts and Liabilities
Prenups don’t just address assets—they can also assign responsibility for debts. Couples can decide in advance which debts will remain separate and which will be shared, protecting each spouse from unexpected financial burdens.
5. Inheritances and Family Assets
Prenuptial agreements can preserve inheritances or family heirlooms for one spouse or their children from a prior relationship. This ensures that these assets remain protected and pass according to your wishes.
6. Future Income and Support Provisions
Spouses may also set terms for future income or spousal support in their prenup, as long as the provisions are fair and comply with California law.
Protecting Your Future with a Well-Drafted Prenup
A California prenup must be fair, transparent, and signed voluntarily by both parties after full financial disclosure. Each party should also have independent legal counsel to ensure the agreement is enforceable.
At Collis Law, APC, we can provide legal assistance to the Walnut Creek public in preparing and reviewing prenuptial agreements that safeguard your financial interests while complying with California’s family law requirements.
