Divorcing in California with a Prenup Versus without a Prenup

Prenup vs no prenup how it changes divorce outcomes in California.

California Prenuptial Agreements

Divorce

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Getting a divorce in California (or any state, for that matter) can be complicated. Having a prenup in place eliminates many question marks that may exist during this difficult process.

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The Process

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Step 1

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Filing for divorce

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With or without a prenup, every divorce begins when one spouse filing for divorce or legal separation, officially starting the legal case with the Court. The other spouse then has a chance to file a response.

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Step 2

Sharing financial information

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The next step is the legal requirement to share financial information with the other spouse. The point of this step is to put everything on the table: assets, debt, income, and expenses. Regardless of a prenup or not, you will need to disclose all of your finances, but having a prenup may require less attorney work at this step because certain assets may be entirely separate property pursuant to the agreement. Less attorney work means less legal fees.

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Step 3

Making decisions

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After both spouses share financial information, decisions must be made by either the court or the couple. This is when having a prenup is extremely useful since you’ve already agreed on what will happen in the divorce in regard to most of the financial issues in your case. If you do not have a prenup, you will now need to decide what to do (property division, debt division, spousal support, etc.). If you can’t decide, the judges will decide for you. Remember, with a prenup, the attorneys and judges have less work to do at this step, thus cutting down on legal fees and making the whole process a lot faster.

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Step 4

Finalization

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The last step: finalization of the divorce. This step is the same whether or not you have a prenup, but it may arrive faster if you do. After you and your spouse have ironed out the details of spousal support, property division, and child matters, you will submit final documents to the court and your divorce will become final.

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California Divorce Process With a Prenup versus Without a Prenup

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When you get divorced, a prenuptial agreement could make the process faster, and possibly less expensive by providing an outline of how issues are to be resolved. However, without a prenup, you are leaving complicated issues such as spousal support and property division up to various interpretations that a Court may consider when it has to make its decision.

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Spousal support

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Many couples that are self-supporting before marriage want to maintain that self-support after marriage. Hence, many couples choose to eliminate the possibility of spousal support in their prenups. If you don’t want to get rid of spousal support completely, you might just modify the amount or duration of spousal support payments in your prenup. For example, you could agree that one spouse will receive support only during the divorce proceedings or limit support to a specific dollar amount.

When a couple agrees to alter spousal support in their prenup, the California family court will generally oblige by the couple’s request. Of course, there are always exceptions, and if your spousal support provision is unconscionable at the time of the divorce, the court may decide not to uphold the modification or elimination of spousal support.

Be aware, under the California UPAA (the California Prenuptial Agreement statute), if you or your future spouse plan to eliminate or modify spousal support in your prenup, it is imperative that the person losing out on support be represented by an attorney at the time the prenup is signed. For example, if you both want to waive your right to receive spousal support from each other, you must each be represented by your own attorney.

[/et_pb_tab][et_pb_tab title="Without a Prenup" _builder_version="4.16" _module_preset="default" global_colors_info="{}" theme_builder_area="post_content"]What are the laws around spousal support when you don’t have a prenup in tow? Without a prenup, standard California family law will apply, and a judge will have discretion in determining how much and how frequent spousal support shall be paid. (Read: if you don’t want someone else telling you what to do, you should write it up in a prenup!) Types of Spousal Support under California Law If you do not have a prenup, a California family court will decide how much spousal support you will pay or receive, and for how long. While your divorce is pending, you may be entitled to temporary spousal support, which is meant to provide support at a higher level during the divorce process. On the other hand, your final judgment may include a permanent spousal support order based on the marital standard of living, which may be for a limited time (depending on the length of your marriage), or it may continue indefinitely until either spouse died, or the supported spouse remarries. Legal factors in determining spousal support under California Law A California family court will determine whether spousal support should be paid and how much should be paid based on several factors set forth in Family Code section 4320, including:

The extent to which the supported party contributed to the attainment of an education, training, career position, or license by the supporting party,
The ability of the supporting party to pay (considering the supporting party’s earning capacity, earned and unearned income, assets, and standard of living),
The needs of each party based on the standard of living in the marriage,
The obligations and assets, including the separate property, of each party,
The duration of the marriage,
The ability of the supported party to engage in gainful employment without unduly interfering with the interests of dependent children in the custody of the party,
The age and health of the parties,
All documented evidence of any domestic violence,
The immediate and specific tax consequences to each party,
The balance of the hardships to each party,
The goal that the supported party shall be self-supporting within a reasonable period of time (with some exceptions),
The criminal conviction of an abusive spouse, and
Any other factors the court determines are just and equitable.

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Property and Debts

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Have you ever heard the phrase “you get what you get, and you don’t make fit?” Well, that pretty much sums this section up. “You get what you previously contracted to in a legally sound prenuptial agreement.” Rolls off the tongue!

In a prenup, you may delineate what happens to your property and debt after the marriage ends. Many people write into their prenup that certain things should be kept separate, like bank accounts and retirement funds, in the event of a divorce. With a prenup, the court does not apply standard California family law that requires a judge to divide your stuff 50/50. Instead, the court will oblige by what you agreed to in your prenup (unless the provision is unconscionable).

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Property and debt division is one of the most contentious aspects of divorce because a judge is telling you how to split up your house, car, bank accounts, jewelry, beanie babies, NFTs, loans, and pretty much anything else you can think of with significant value! Without an agreement, you will have no say in what happens to your stuff because standard California family law will apply, and the court will have discretion in determining who gets what.

So, what does California law say about the division of property? California is a “community property” state, meaning that there is a presumption that all “community” property and debt acquired during marriage should be divided 50/50 by the court. Separate property (property you owned before the marriage or were gifted or inherited) will not be split up in the divorce; however, the “community” property can gain an interest in certain separate property assets during marriage. This may cause one party to pay the other their portion of the community property interest created during marriage.

Okay, so there’s community property, separate property, and a mix between both community and separate property – now what? Now, you will keep the separate property, and the court will split up the community property. In most instances, the property and debt will be valued as close as possible to the time of trial to provide the most equitable division; however, there are some assets and debts that may be valued at the date of separation. In other words, by placing a numeric value on your assets and liabilities, the court can determine who gets what as fairly as possible.

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A Quick Note on Child Custody and Child Support

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California does not allow couples to agree to child custody or child support terms in a prenuptial agreement. Why? Children are human beings with feelings and needs that change over time, and a contract shouldn’t dictate their lives, made years before they were possibly even born. If you have children, you must go through the typical legal process to determine child support and custody. In other words, there is no way to predetermine child custody and child support via prenup.

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Raymond Hekmat’s practice of law has been devoted exclusively to areas of California family law focusing on prenuptial agreements, divorce consulting and mediation, since earning his Juris Doctorate degree from Loyola Law School in 2009. During his tenure at Loyola, Raymond was President of the Evening Bar Association, and was awarded the Alumni Association Governors’ Alumni Award. While earning his degree, Raymond worked as a law clerk, and later an associate, for a Beverly Hills family law firm.

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Prior to founding HLM, Raymond’s practice involved complex family law litigation involving high-asset property division, complex custody litigation, jurisdictional issues, division of community estates and prenuptial agreements.

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