We live in an economy that is placing assets for millions of people at risk, and unfortunately anyone’s financial standing can change radically at any time. Given this unfortunate reality, people who are married are beginning to take a close and hard look at their finances and attempting to plan for whatever may come about down the road. One of the ways to place some degree of certainty on marital assets should a marriage encounter trouble is to execute a postnuptial agreement. Those who would like to find out what such an agreement could do for them should seek the advice of experienced San Diego family lawyers, and below is a brief introduction to this step.
What is a Postnuptial Agreement?
A postnuptial agreement is basically a contract that’s executed between spouses while they are still married. While it is not necessarily tied to the possibility of a California divorce, a postnuptial agreement can provide a plan for how assets will be distributed should the marriage end in the future.
Specifically, a postnuptial agreement categorizes assets that are held both by the individuals by themselves and those that are part of the marital estate. The agreement will clearly define which party owns or retains the rights to each of these assets and how they would be distributed should the marital estate ever be divided.
Why Execute a Postnuptial Agreement?
When people do decide to pursue a California divorce, one of the nastiest aspects of the process is often deciding how the estate should be divided. California is known as a community property jurisdiction, which means that overall, the marital estate should be split as evenly as possible between the spouses. However, classifying certain assets can be confusing and lead to drawn-out fights between the parties that accomplish little but add to the costs of the divorce.
Therefore, those who execute a postnuptial agreement can be protected from having to enter into this type of controversy. It will provide peace of mind for the spouses based on the understanding of which assets are classified in which manner and allow the parties to avoid this step in the process.
How Scott Family Law Can Help
Postnuptial agreements, like other contracts, need to meet certain criteria in order to be deemed as legally valid and binding. Mistakes made with this agreement can lead to serious problems should it ever be needed to govern property division. Therefore, those who want to put this issue behind them need to seek the help of experienced San Diego family lawyers who have helped many couples complete postnuptial agreements successfully. Contact the law office of James D. Scott today to schedule an initial consultation.
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