A California postnuptial agreement is a legally binding document designed to outline the division of assets, liabilities, and responsibilities between spouses in the event of a divorce or separation.
Unlike a prenuptial agreement, which is crafted before marriage, a postnuptial agreement allows couples to address financial matters after they are married and clarify expectations.
Legal Considerations
The relevant statutes and legal principles that apply to postnuptial agreements in the state are typically enforced under the California Family Code, particularly Part 5 (Marital Agreements).
- Signing Requirements: Both parties must sign the document in the presence of an attorney or a notary public (In re Marriage of Friedman, 100 Cal.App.4th 65, 122 Cal. Rptr. 2d 412 (Cal. Ct. App. 2002)).
- Dividing Property: Community property (§ 2581).
Understanding Postnuptial Agreements in California
Undue Influence
- This legal concept applies when there is a significant power imbalance or when one spouse exerts pressure or coercion on the other to agree to terms that are overly favorable to them.
- In such cases, the law aims to protect the disadvantaged spouse from exploitation or manipulation, ensuring that postnuptial agreements are entered into voluntarily (In re the Marriage Bonds, 24 Cal.4th 1, 99 Cal. Rptr. 2d 252, 5 Cal. Rptr. 2d 815, 5 P.3d 815 (Cal. 2000)).
§ 721 – Transaction between Spouses
- Spouses are permitted to engage in property transactions with each other or third parties, similar to what they could do if unmarried.
- Spouses must adhere to fiduciary rules, including providing access to transaction records, disclosing full information about transactions involving community property, and accounting for any benefits derived from such transactions without the other spouse’s consent.
§ 1501 – Minor Making Agreement
A minor can create a legally binding premarital agreement or other marital property agreement under certain conditions:
- If the minor is emancipated or deemed capable of contracting marriage according to Section 302 or 303.
- If the minor is entering or has entered into a valid marriage in the jurisdiction where the marriage is solemnized.
§ 1502 – Recording Agreement
- Premarital agreements or other marital property agreements can be recorded in county recorders’ offices if they are executed and acknowledged or proved similarly to real property grants.
- Recording or nonrecording of such agreements holds the same legal weight as recording or nonrecording a real property grant.
