The specific details that individuals include in their legal documents can play a significant role in how useful those documents are. For instance, when marrying California couples choose to create prenuptial agreements, they may simply think that stating that each party keeps his or her own assets will simplify the property division process. However, because there can often be blurred lines when it comes to which assets belong to whom, being detailed may prove beneficial.
One example of a potentially complicated division aspect relates to gifted items. If a person bought an item and gifted it to his or her spouse, does the property belong to the individual who purchased it or to the party who received it? By addressing this specific scenario in a prenuptial agreement, couples may avoid unnecessary complications later on.
Additionally, parties may often overlook their retirement accounts when they consider assets that could be divided. If individuals are at a young age when they marry, they may not give much thought to their 401(k) or other retirement account, but they may want to be aware that the funds in those accounts could be up for division. By using a prenup to indicate that those funds remain separate property, parties may feel less of a financial blow.
Being as specific as possible may leave little room for confusion should a prenuptial agreement need to be used. California residents who are interested in creating such a document may wish to closely assess their circumstances and desires to determine what details they may want to include in their agreements. Speaking with experienced attorneys can help concerned parties learn more about property division and the use of prenuptial agreements.
Source: popsugar.com, "The Most Important Things to Put in Your Prenup (Including Items You Probably Didn't Think About)", Nicole Yi, July 5, 2017