According to California law during the divorce in the absence of a prenup agreement all the property that is not a gift or inheritance will be divided equally between the spouses, and it doesn’t matter if the property is in one party’s name.
If the property is a gift, or inheritance, then it is considered a separate property and belongs exclusively to the spouse that acquired it. However, efforts to improve, enhance, or contribute to separate property can create a community property interest in that separate property. This is where a prenup can come into play. A prenup can provide that your spouse never acquires a community interest in your separate property.
In the absence of prenup, in order to determine what is separate property and what community one, the use of forensic accountants is required, during which all the dates of purchases, prices, contributions increases and decreases should be traced. But in most cases it will require hundreds of thousands or even millions of dollars.
Furthermore, in the absence of the marital agreement, all the earned money of one spouse during the marriage will be separated equally in a divorce process, i.e. if you earn 50.000.000 during the marriage, the half of it will go to your spouse after the divorce.
However, premarital agreement can be a very useful tool in order to save your property from future conflicts with your spouse. Thus, if you believe that a drafted marriage contract can serve in your best interest, do not hesitate to contact The Margarian Law Firm. Our experienced and professional CA family law attorneys will explain all the pros and cons of this legal document.
You may file your request online, by telephone or by mail. 818-553-1000