Will My Prenup Agreement Affect My Mortgage?
What Is a Prenup Agreement?
As the name implies, a prenuptial agreement is a legal agreement between two spouses that they draft before marriage. This type of agreement details what happens to each spouse’s assets in case of a divorce or the death of one of the partners in the marriage. You and your future spouse can work together with a prenup lawyer to draft a prenup agreement that is fair to both parties before your wedding ceremony. There are a lot of different items that you might include in a prenup - not just pieces of property, but things like business plans, alimony, retirement benefits, and more. While many people are under the impression that a prenup only benefits the person who enters the marriage with more assets, this is not the case. A prenup can mutually benefit both parties entering the marriage. Some people think that getting a prenup signifies that you think the marriage will end in divorce, but it is really a form of protection and assurance that you won’t drain your bank account during legal battles.
California is what’s known as a community property state, meaning that if you acquire a piece of property together during the mortgage, it’s considered community property and belongs to both spouses equally. However, a prenup can override these laws. If you do not have a prenup in place, a house that you purchase together will automatically become community property. When you draft a prenup, you can decide what happens to these pieces of property in advance to avoid legal battles later. You should make sure that your prenup is very specific to avoid any negative consequences. If you have a prenup and decide to purchase a home, you can decide whether or not you add the property to your prenup agreement. You can account for the purchase of future property in your prenup agreement and decide how to separate the responsibilities of the property such as mortgage payments, who is listed on the mortgage, who is listed on the title, and more.
A prenup can protect both you and your spouse’s current and future property purchases. If you decide to get a prenup agreement before you get married, you can avoid legal battles in the event of a divorce because you have already decided how your property will be split in the case of a divorce.
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