Prenuptial agreements are effective legal tools that allow a couple to resolve certain issues before they get married. These include determining how property will be divided and how other issues will be handled in the event that they divorce. It is important to remember that these agreements are legally binding contracts that are generally enforceable later down the road. That’s the main takeaway from a recent case out of California’s First District Court of Appeals.
Husband and Wife signed a prenuptial agreement shortly before they married in November 1990. Under the terms of the agreement, which they signed in Arizona, the couple pledged to treat all income and property obtained by one spouse during the marriage as separate property. That meant that each individual spouse would be entitled to all of that income and property in the event of a divorce.
Wife eventually filed for divorce in 2011, and a trial court found that the agreement was enforceable over Husband’s objection. It also denied his request for alimony and a separate request to be reimbursed for improvements that he started but didn’t finish on a home that Wife purchased.