In the United States, premarital agreements found little support in the law until late in the 20th century. They were seen as antithetical to the true spirit of marriage, and courts were reluctant to recognize them, let alone enforce their provisions. Today, the “prenup” is recognized by every state, including California, which accepted the validity of such agreements in 1976. Enforcement, however, is not automatic. It depends on the circumstances of the parties and, most of all, on the document itself.
A premarital agreement is a contract and, like any contract, it must meet certain threshold requirements in order to be valid. In California, a premarital agreement will not be enforced if there was inadequate disclosure by either party, if the agreement was not entered into voluntarily or if its terms were unconscionable or in violation of public policy.
California law begins with the proposition that every premarital is presumed to be involuntary unless certain conditions are met: each party must be represented by counsel or must have knowingly waived representation; there was adequate disclosure of the meaning and effect of the agreement; and there was no duress or fraud involved. In addition, at least seven days must have passed between the day a party first saw the agreement and was advised to obtain counsel, and the day the agreement was signed. All of this – the premarital agreement itself and any documentation that shows the requirements were met – should be duly memorialized in writing.
A valid premarital agreement can do many things. It can determine the division of assets and debts, provide for spousal support, delineate rights in the event of a party’s death, and protect a party’s business interests. Perhaps its most important power is its ability to make an advance determination of what constitutes community property and what constitutes separate property, a highly significant distinction under California law. It was that very distinction, supposedly settled in a premarital agreement, that led to the payment of a $130 million divorce settlement by Dodgers owner Frank McCourt in 2011.
There are also some things a premarital agreement cannot do. It cannot provide for penalties for infidelity or drug use, or require that children have a certain religious upbringing. In fact, matters of child custody and support cannot be disposed of in advance by premarital agreement. There, because of the law’s focus on the best interest of the child, the court will always have the last word.
To be effective, a premarital agreement requires counsel with a solid understanding of California law and superior legal drafting skills. For further information, please contact Seeley Family Law Practice.