Articles Posted in Prenuptial Agreements

Tom Brady and Gisele Bundchen have finalized their divorce almost as quickly as news came out that they filed for divorce. But how were they able to reach a settlement so quickly?

There were a few important factors that allowed Tom and Gisele to reach an agreement quickly, including participating in mediation prior to ever filing for divorce  and remaining amicable, by all accounts (which will always speed up the process in a divorce case). However, the main reason their divorce remained uncomplicated? Reports say that Tom and Gisele signed an “iron clad” prenup prior to their marriage in 2009.
By signing a well written prenuptial agreement prior to their marriage, Tom and Gisele removed any question of how their assets would be divided in the divorce. This is important, not only because of their high profile status as a couple, but also because they are each independently worth hundreds of millions of dollars. Their prenuptial agreement likely addressed their net worth entering the marriage, their earnings during marriage, any properties already owned prior to or purchased during the marriage and spousal support. By having a prenuptial agreement that they both voluntarily signed and understood, there really was very little left for them to fight over, other than custody of the kids, which they agreed to share.

2020 was not an easy year for many relationships. Studies show that the divorce rate in California alone has spiked immensely. Couples who normally had the security blanket of leaving for work every morning were now being forced to stay home, and dare I say it…. spend time together. This created a lot of problems for many relationships that were avoiding the inevitable. With couples having to spend 24 hours in the same home, many slowly began to realize that maybe their marriage wasn’t as harmonious as they once had believed. COVID-19 has profoundly expedited the end of many relationships and marriages. Divorce rates have spiked and it has never been a busier time in the family law community.

So, it’s no surprise that celebrities are following suit. Kim Kardashian West has filed for divorce, seeking to end a nearly seven-year marriage to Kanye West that seemed to be coming for many months. In the past few years, Kanye West has run for U.S. president with no political qualifications, followed by his admission into Los Angeles’s Ronald Reagan UCLA Medical Center for “observation after suffering from exhaustion”, according to Billboard Magazine. He has also made some unnecessary comments via social platforms like Twitter, making his manic episodes even more public and embarrassing.

According to Entertainment Today, the infamous couple are already in the process of reaching a property settlement agreement. When it comes to custody of their four children together, North, 7, Saint, 5, Chicago, 3, and Psalm, 1, Kim is asking for joint legal and physical custody, which Kanye agrees to. They are dedicated to co-parenting together.

Earlier this year, after the Coronavirus outbreak happened, a survey of engaged couples found that over 60% of them had decided to postpone their wedding plans.[1] While the initial shock of postponement is a bit depressing, the additional time taken to plan one’s wedding provides the opportunity for a couple do decide whether to enter into a Prenuptial Agreement.

Many people are suffering through financial difficulties caused by job loss and new lifestyle changes due to lack of in-person schooling for both children and adults. We have found that these sudden changes have caused many couple’s marriages to break down and has led to the increase in divorces this year. Although entering into a Prenuptial Agreement doesn’t sound romantic, it can help you and your soon-to-be life partner have a long-lasting marriage that does not end in divorce.

California is a community property state, meaning that all property acquired after a marriage with community funds (such as a paycheck) belongs to both spouses equally. Any property or debt owned prior to the marriage or bought after the marriage with money from the sale of property owned prior to the marriage, is property that is owned by each spouse as their separate and sole property. A prenuptial agreement or a “prenup” allows couples to agree to keep any property and earnings acquired during the marriage as separate property and even allows couples to limit the amount spousal support a spouse is entitled to in the event of a divorce.

When getting married, most people don’t like to think about the possibility of divorce, but in some situations, considering what would happen to your property and money if an impending marriage were to end in divorce would be the wise thing to do. California is a “community property” state. That means that everything acquired by either spouse during marriage is presumed to be “community property.” This means that at the time of a divorce, everything acquired during marriage will likely be split equally, including property, businesses, retirement assets, bank accounts, and debts. In most cases, spouses also owe each other a duty of support following marriage, at least until the other spouse can become self-supporting. While these results may not be undesirable for some, for others, including those who are older and more established, have already been married, have significant assets and/or earn a lot of money, it might be prudent to consider a prenuptial or premarital agreement, or as it is commonly called a “prenup.”

As part of a prenup, parties can agree to keep all of the property and earnings he/she owned prior to marriage separate. They can also agree to keep any property and earnings they may acquire during marriage separate. Additionally, it is permissible to limit the payment of spousal support or to even cut off a party’s right to receive spousal support at all. However, contrary to popular belief, a prenuptial agreement will not be valid if it attempts to limit the payment of child support in any way. Simply put, parents cannot bargain their way out of their legal responsibility for supporting their minor child(ren).

Prenups can be extremely powerful and if drafted and executed properly, will most often be enforced by California courts. However, there are very specific procedures that need to be followed to ensure that a prenup will withstand a challenge in court. If you are considering a prenuptial agreement or have been presented with one by your soon to be spouse, it is imperative that you seek legal advice. Similarly, if you are facing a divorce and a prenuptial agreement was signed at the time of marriage, seeking legal advice as to whether the agreement is valid is extremely important. At Argyris Mah, LLP, we can provide you with sound legal advice no matter what issues you have surrounding a prenup. Call us to schedule a free telephone consultation at (408) 564-5674, and we would be happy to explain your rights and the possible ramifications with respect to your prenuptial agreement.

Asking your soon to be spouse to sign a prenuptial agreement is a subject that is guaranteed to cause tension. Thinking about the end of a marriage before it has even started can be very difficult, but at times, necessary.

A recent survey of the American Academy of Matrimonial Lawyers recently showed that 62% of clients, particularly millennials, are now requesting prenups prior to getting married. There are a variety of reasons for this, but regardless of the reason, a prenup is typically a topic that no one wants to discuss. However, there are ways to have the discussion with your partner in a collaborative and positive manner that may ultimately make everyone in the relationship happy as outlined in the article below:

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