Prenup Laws and Requirements in California

There are certain legal requirements in California law that you must fulfill if you want your prenup to be legally binding.  

  • Firstly, prenups in California must be concluded in writing, meaning that no Court will consider oral agreements in case of a dispute.
  • Secondly, both spouses must sign the document willingly without coercion or threats.
  • Also, different attorneys have to advise both parties to the prenup. 
  • Both parties must have at least seven days to review the document before signing it. 
  • In addition to these, before signing the prenup, both parties must receive complete information regarding financial assets and the property owned by the other party to the agreement. Such disclosure should also contain information on the debts. Concealment of any assets may result in an annulment of the prenup by the courts.
  • There are no requirements to notarize the form. However, it is always advisable to do so. 

Prohibited Clauses 

There are also some legal requirements on what cannot be included in a California prenup form under any circumstances. First of all, any clauses regarding child support or custody over children may result in the annulment of a prenup. Secondly, deceptive or exploitative requirements to one of the spouses have also been prohibited, as well as any links to illegal acts by one of the spouses. Additionally, you cannot include any non-financial requirements into the prenup, for example, requirements to change one’s appearance.    

The issue of spousal support is somewhat dubious. In general, the law does not preclude you from addressing this issue in the prenup or even waving it. However, there are certain limits to this right. The most important limitation is the fact that even a fully legal waiver of spousal support at the time of the conclusion of a prenup cannot be enforced by a court if this waiver became unconscionable at the time of enforcement. For example, if one party is severely disadvantaged compared to the other party. 

Also, a prenup cannot include any provisions that are contrary to the state’s public policy. 

UPAA in CA and What it Means

Uniform Premarital Agreement Act or (UPAA) in California is an act of law that can be found in the Family Code of California. It contains criteria for prenups without which a prenup would not be a legally binding document and will not perform its functions in case of a divorce. 

What to Include in a California Prenuptial Agreement

The UPAA in California prescribes that the spouses may make clauses in a prenup regarding the next steps. This includes the disposition of property in case of separation, divorce, or death of one of the spouses. Also, the spouses are free to mention any other event that is not considered unjust.  Moreover, parties may contract the disposition of the death benefits received from life insurance. 

Additionally, the spouses may address the issue of rights to buy, sell, lease or manage property in any other way. Clauses that touch on future debts and liabilities can also be included. 

Last but not least, we have to mention that if one of the spouses has ties in a different state, they may include a choice of law option in the prenup and use the family law of another state to govern this document. 

Community property issue

Probably the most common reason to conclude a prenup is the issue of community property. Because under California law, in case of a divorce, a court has to divide the property based on financial disclosure. In most cases, courts opt for equal distribution. However, a prenup can prevent such a situation by including a clause that limits the community interest of one of the spouses in the separate property.