Relationship Planning

For those about to be married, a prenuptial agreement, also called a premarital agreement, is the one opportunity to opt out of the arcane and often harsh rules imposed on married people under California’s Family Law Code. A premarital agreement is extremely valuable, because it allows you to take your destiny into your own hands.

In fact, for many, a premarital agreement may be the most important legal document that they enter into in their lifetime. When people marry in California, they receive a single piece of paper – a marriage license. The license does not even hint at the dizzying array of laws and regulations imposed by California State Law for simply saying “I do.” Ironically, even though married people in California are subject to these laws and regulations, the State does not require disclosures – even disclosures that are necessary when one buys an automobile or a piece of property.

Because of the unique dictates of California law, cookie-cutter prenuptial agreement forms have little or no value. If such agreements are not properly drafted, or fail to take into account the unique circumstances of each couple, they can be rendered unenforceable. This could have costly consequences to the parties and members of their families.

Our family law attorneys are experienced in handling complex family law matters, and ably assist clients throughout Southern California to negotiate and prepare prenuptial agreements specifically tailored to individual needs and circumstances. We also prepare cohabitation, domestic partnership, and postnuptial agreements.

Some people have the idea that living together is the same or similar to being married. It’s not. It’s very different. There are approximately 1500 rights, responsibilities, liabilities, and obligations that attach when people say “I do”. That is not the case when people simply live together.

Experts tell us that financial issues are the number one reason relationships end. We encourage people to sit down and talk about what their expectations are – how do they picture the relationship developing. If emotional issues come up – which is normal – bring in a trained psychotherapist or mediator to help address the issues. Since people who live together can buy property together, purchase goods and services, and open joint bank accounts or credit cards, a Cohabitation Agreement is a very good idea and an excellent opportunity to discuss these critical issues. Parties should sit down and decide who’s going to own property, how the bills will be paid, and how they will handle bank accounts and credit cards. They can do it together or with the assistance of a trained mediator. Then all of those agreements should be memorialized in a formal Cohabitation Agreement. If your partner is adverse to discussing a Cohabitation Agreement, you might wonder what it is they aren’t willing to talk about. People who aren’t willing to be open, who aren’t willing to talk about their expectations or disclose their agendas, probably aren’t ready for a serious relationship.

Although not all Cohabitation Agreements are created equal, a typical Cohabitation Agreement may also establish how the parties wish to define their respective rights and responsibilities regarding each other’s income, property, and the income and property that may be acquired, either separately or together, during the period of cohabitation. Cohabitants are encouraged to make a full and complete disclosure to each other of all of their financial assets and liabilities. Many relationships have ended when one party discovered the other had not been honest about their finances. “If one cannot be honest and open about money, can they be honest and open about more sensitive issues?”

A Cohabitation Agreement may also set forth that the Cohabitants wish to waive or establish certain rights regarding “palimony” or other forms of support, sharing in each other’s estates upon death, sharing in the increase in value during the period of cohabitation of the separate property of the parties, and/or sharing retirement benefits.

At a more practical day-to-day level, a Cohabitation Agreement can also set forth how household expenses will be divided and it may memorialize other agreements of the cohabitants such as the custody of pets and the allocation of household chores. However, one issue that cannot be addressed in a Cohabitation Agreement is the legal obligation to pay child support to any children of the Cohabitants. Courts always retain jurisdiction over the issue of child custody and support.

If you would like to talk to one of our experienced family law attorneys about a Cohabitation Agreement or any other family law issue, please give us a call at (818) 348-6700. We are here to serve you.

If you’re already married, it’s not too late to make an agreement which addresses and resolves similar issues to those addressed in a prenup.  Because the agreement is entered into after the nuptial (wedding) ceremony we call them Postnuptial agreements.  Some call such contracts midnuptial or internuptial agreements and they are sometimes mistakenly referred to as Postmarital agreements.  The last is incorrect since the term “postmarital” means “after marriage” and the purpose of these agreements is to establish new conditions while the parties are still married.

Recently a couple came in together to discuss divorce mediation with us.  They said that they wanted to get divorced so they could put their financial differences behind them and start over again… with each other.  They wanted to get divorced so they could return to the relationship they had when they were dating each other.

Based on all of the information they shared and the goals they both expressed, I suggested that they enter into a postnuptial agreement instead of getting divorced.  First, they’d save money not having to file a petition for dissolution and not having to go through the legal service of process and subsequent mandatory filings.  Second, if their only issues were financial issues, we could address most of them* in a postnuptial agreement and avoid the stigma often associated with divorce.  They thought this was a splendid idea and we were able to complete the whole process at a fraction of the time and cost of a divorce AND they continue to celebrate their wedding anniversary without complicated explanations or justifications.

Case law on the issue of postnuptial agreements continues to evolve so in order to best ensure enforceability our experienced family lawyers advise that Postnuptial agreements be prepared and entered into with the same level of formality and financial disclosure as a prenuptial or dissolution agreement.

If you think your relationship would benefit from the “reset” a postnuptial agreement might provide, contact our experienced family law attorneys at (818) 348-6700 or by sending us an e-mail.

Spousal support (formerly known as alimony), is the money that is paid by one spouse to the other for their support and maintenance. Since January 1, 2019, spousal support is no longer deductible on the payor’s taxes and no longer taxable as income for the payee at the federal level. California still considers these payments taxable income to the person receiving it and a tax deduction for the person paying, however, it is important to note that in order to be deductible for tax purposes, the payments must be pursuant to a written agreement or court order and otherwise meet the requirements of current tax laws. A tax expert should be consulted in this regard.

The court has discretion to award support to either spouse depending on a variety of factors, including but not limited to actual income, ability to earn income, marital standard of living, length of marriage, degree of education, health issues, and more. Awards of spousal support may also include life insurance, health benefits, and mortgage payments.

At The Law Collaborative, Los Angeles our family law attorneys are determined to obtain the best outcome for your support case. We design unique legal strategies based on the individual factors of your case. When necessary, we consult forensic financial experts to ensure the best outcome. We are committed to making sure your needs are met. We are also experts in obtaining modifications to existing support orders.

The Sixteen Personality Factor Questionnaire, or 16PF, will help identify personality factors that may predict marital compatibility and satisfaction. Results also highlight existing or potential problem areas.

If you are interested in conducting a Pre-Marital Assessment, and would like a referral to a qualified mental health professional near you, please call (818) 348-6700.