10 Topics That Should Be Covered In Your Prenuptial Agreement

August 15, 2025

A prenuptial agreement is a written contract that couples sign before getting married, outlining how they will manage their finances. While often misunderstood, a prenuptial marriage agreement isn't just for the wealthy; it's a practical tool that helps protect both parties, clarify financial expectations, and reduce future conflict.


Many couples hesitate to bring up a prenup out of fear that it will cause tension or seem like a lack of trust. But avoiding the conversation can lead to greater uncertainty down the road. When approached thoughtfully, a prenup can strengthen the relationship by fostering transparency and planning. 


This blog covers ten key topics every couple should consider including in their prenuptial agreement to ensure it's fair, transparent, and tailored to their needs.


What is a Prenuptial Agreement?


In California, a prenuptial agreement (or premarital agreement) is a legal contract that two people sign before getting married. It sets out each person’s rights and responsibilities for property, income, debts, and other finances if the marriage ends in divorce or death. It allows couples to override certain default rules under California’s community property system by agreeing in advance how they will handle assets and liabilities.


To be valid and enforceable in California:


  • Both individuals must sign a written agreement before getting married.
  • Each party must provide a complete and honest disclosure of its financial details.
  • Each party must enter the agreement voluntarily, without pressure or coercion.
  • The agreement becomes effective only upon the couple's legal marriage.
  • Legal professionals strongly recommend that each person hire separate counsel, mainly when the agreement includes spousal support provisions.


Couples sign prenuptial agreements before marriage, while they create postnuptial agreements after getting married to serve a similar purpose. Both can address many of the same issues, such as property division and debt responsibility. California courts scrutinize postnups more closely and hold them to a higher standard of fairness and disclosure.

Pros and Cons of Creating a Prenuptial Contract


A prenuptial contract offers several legal and practical benefits, but it also has limitations that couples should weigh carefully before moving forward.


Pros


  • Identifies Financial Duties and Ownership Rights
    A prenuptial contract spells out how both spouses will manage assets, income, and debts during the marriage, reducing confusion and the risk of future disputes.
  • Protects Separate Property
    The agreement allows each spouse to protect assets they owned before the marriage, including businesses, investments, or inheritances, from being classified as shared property.
  • Supports Estate Planning
    Couples use prenuptial agreements to complement their estate plans, ensuring that children from previous relationships or family heirs receive designated assets.
  • Reduces Legal Conflict in Divorce
    By resolving key issues in advance, couples simplify the divorce process, reduce legal costs, and avoid unnecessary litigation.
  • Overrides California’s Default Property Rules
    Instead of relying on the state’s 50/50 division of marital property, a prenup lets couples create a more personalized and flexible arrangement.


Cons


  • Emotional Sensitivity
    Discussing a prenup can feel uncomfortable or even confrontational. Some may see it as a sign of mistrust, which can create tension before the marriage begins.
  • Potential for Unequal Bargaining Power
    If one spouse has more financial or legal knowledge, they may draft terms that favor them, resulting in an unfair agreement and potential legal challenges later.
  • Limitations Under California Law
    California courts may refuse to enforce specific terms, such as a spousal support waiver, if they find the terms unjust or if the agreement was signed under pressure.
  • May Not Address Future Changes
    A prenuptial agreement may become outdated if the couple experiences major life changes. Unless the couple reviews and updates the agreement, it may no longer reflect their current circumstances.


A well-drafted prenuptial agreement can offer clarity and peace of mind. Still, it’s important to approach it with careful planning and professional guidance to ensure it reflects both parties’ interests.


10 Topics to Include in Your Prenuptial Agreement


An effective prenuptial agreement covers more than just who gets what. It provides structure for how couples will manage finances, property, and obligations throughout the marriage and in the event of separation or death. Below are ten essential topics every couple should consider when creating a prenuptial agreement.


1. Property and Asset Division

Use your prenuptial agreement to define which assets each spouse will keep as separate property and which will be shared. In California, most property acquired during marriage is community property.


2. Debts and Financial Obligations

Assign responsibility for existing and future debts clearly in your prenup. You can protect each spouse from becoming liable for the other’s student loans, credit card balances, or business debts. By setting these terms early, you reduce confusion and protect both parties from unexpected financial burdens.


3. Spousal Support

Use the agreement to clearly state whether either spouse will receive spousal support after divorce and to specify the terms. Set the amount, duration, or waive support. California courts will review these clauses to ensure that the terms are reasonable and voluntary for both parties.


4. Inheritance and Estate Rights

If you have children or wish to protect inheritances, include terms that support your estate plans. You can ensure certain assets go to children born outside the current marriage or specific beneficiaries. Match these terms with your will or trust for consistency.


5. Business Ownership and Interests

Clearly state how the agreement will address any business interests. If you own or expect to start a business, outline what claim, if any, your spouse will have. By doing so, you clarify ownership, prevent conflicts, and reduce the risk of disputes about the value of your business during a divorce.


6. Retirement Accounts and Investments

Specify how to handle retirement accounts and investments in your marriage. Decide whether you and your spouse will keep IRAs, 401(k)s, pensions, and other investments separate or share them. Set clear rules for contributions and how you will divide any growth in value.


7. Financial Responsibilities During Marriage

Set clear expectations for day-to-day finances. Decide who will pay household expenses, whether to use joint or individual accounts, and each spouse’s contribution to savings. Doing this helps avoid financial misunderstandings during marriage.


8. Real Estate Ownership

Explain how you will treat real estate owned before and purchased during the marriage. Clearly define who owns the home, who pays for what, and how you will split the property value if you separate. When one partner already owns a home, defining these terms helps prevent confusion and protect individual interests.


9. Children from Previous Relationships

Use your prenup to protect the financial interests of children from prior relationships. Preserve their assets or inheritance rights, and outline any agreed-upon responsibilities for support or education. While the agreement can’t set custody or child support terms, it helps ensure your children remain financially secure.


10. Dispute Resolution Methods

State how you want to resolve disagreements if you separate. Agree on using mediation, collaborative divorce, or arbitration instead of immediately going to court. This plan helps reduce conflict and keeps costs and stress down.


Importance of Working With a Prenup Lawyer


Working with a prenup lawyer ensures your agreement is valid, enforceable, and in compliance with California law. While online templates and samples may look convenient, they often miss critical legal requirements or fail to reflect your unique financial situation. A spouse or attorney can challenge a poorly drafted agreement in court or, in some cases, convince the court to throw it out entirely.


A skilled prenuptial agreement attorney helps you navigate complex legal issues, ensures both parties fully disclose their assets, and avoids unfair or one-sided terms that could put the agreement at risk. Each spouse should have independent legal counsel to protect their individual interests and prevent claims of coercion or misunderstanding.


Frequently Asked Questions About Prenuptial


What does a prenuptial agreement actually cover?

You and your spouse use a prenuptial agreement to set the rules for managing money, property, and debt during the marriage, and for dividing them if the marriage ends.


It can cover:


  • Which assets remain separate property
  • How to handle debts
  • Terms for spousal support
  • Rules around business interests, investments, and more


A prenup provides both spouses with clarity and legal protection while avoiding the pitfalls of California’s community property laws.


Is it smart to get a prenup before marriage?

Yes. A prenup is a smart and responsible way to plan.


It doesn’t mean you’re planning for divorce; it means you’re taking steps to protect each other and avoid future conflict. With clear terms in place, you reduce the risk of legal disputes and costly court battles later.


Who should consider a prenuptial agreement?

Anyone getting married can benefit from a prenup, but it’s essential for people who:


  • Own a business
  • Have significant assets or income
  • Expect to receive an inheritance.
  • Carry substantial debt
  • Have children from a previous relationship


Can a prenup unfairly leave one spouse with nothing?

No. California law will not enforce a grossly unfair agreement.


Courts look closely at prenups that waive spousal support or create an extreme financial imbalance. If either spouse signed the agreement under pressure, without legal counsel, or without full financial disclosure, the court may set it aside.


To protect both spouses, each should have their own attorney and enough time to review and understand the agreement before signing.


Protect Your Future


A prenuptial agreement gives you peace of mind, legal protection, and financial clarity all before you say “I do.”


At Harris & McKeown Law Firm, we help couples in Southern California create fair, enforceable agreements tailored to their needs. Whether you need to protect your business, plan for your children, or outline financial roles in your marriage, we’re here to guide you through it.


Schedule your confidential consultation today!

Hands shaking over a desk with a gavel and scales of justice, likely after a legal agreement.
November 14, 2025
Family Law Attorney traits: empathy, communication, strategy, assertiveness, integrity, and family law expertise. Learn how to choose the right one.
Person sitting on couch with head in arms, appearing distressed.
October 16, 2025
Learn 5 signs of domestic violence at home, how to recognize them, and when to seek legal help in Orange, Riverside, and Los Angeles counties.
Judge with gavel and family figurines on a table; legal concept.
September 19, 2025
If you’re a parent, one of your biggest concerns is what will happen to your child if you can’t care for them. Illness, injury, or unexpected events can leave them without a clear caregiver. Many families assume a verbal agreement or a will is enough, but in California, you must follow a formal legal process to appoint a guardian. Without a clear plan, relatives may disagree over who should step in, or the court could place your child in temporary foster care while it makes a decision. That can lead to delays, confusion, and stress for both your child and your family. You can avoid these problems by learning how guardianship works and taking a few practical steps now. With the right legal guidance, you can appoint someone reliable to take responsibility for your children and give your family clarity for the future. What Is Legal Guardianship in California? Legal guardianship in California is a court order allowing an adult (not the child's parent) to care for a minor, including making decisions about education, healthcare, living arrangements, and daily needs. Guardianship becomes necessary when parents cannot care for their child due to illness, incarceration, substance abuse, death, or other serious situations. Unlike informal caregiving, legal guardianship must go through the court system and meet specific requirements under California law . It may last for a limited time or continue long-term, depending on the situation. Once appointed, the guardian assumes many of the responsibilities that a parent would normally have. Guardianship does not terminate parental rights. In most cases, the child’s parents still retain some legal rights and may be allowed visitation or, in certain cases, may petition the court to regain custody if circumstances improve. Guardianship vs. Conservatorship: What’s the Difference? Guardianship and conservatorship are often confused, but they serve different purposes. Guardianship applies to minors , children under 18 who need someone to care for them when their parents are unable to do so. The guardian steps in to make decisions about the child's well-being and daily life. Courts use conservatorship for adults who cannot manage their personal or financial responsibilities due to physical or mental limitations. In short: Guardianship = for children. Conservatorship = for incapacitated adults. Understanding the Types of Guardianship in California Not all guardianship arrangements are the same. In California, the court can grant different types of guardianship based on the circumstances and urgency. Temporary Guardianship Temporary guardianship allows a person to take immediate responsibility for a child for a limited period, usually while the court reviews a longer-term guardianship petition. Families often choose temporary guardianship when a child needs care right away, for example, if a parent is hospitalized or becomes suddenly unavailable. In these cases, there may not be enough time to complete the whole legal process for permanent guardianship. The person seeking guardianship files a petition explaining the need and urgency. If the court grants the petition, the temporary guardian will be legally authorized to make decisions about the child’s care until the court holds a hearing on permanent guardianship. Emergency Guardianship Some people use 'emergency guardianship' interchangeably with 'temporary guardianship', but in California, the courts apply it more narrowly to cases involving an urgent threat to a child’s safety or well-being, such as abuse, neglect, or abandonment. In these situations, a person can petition the court for immediate authority to care for the child, often without giving prior notice to the parents if doing so would put the child at risk. The court calls this an ex parte request. If approved, the court grants emergency guardianship quickly, sometimes within 24 to 48 hours. Emergency guardianship is short-term and remains in effect until a regular guardianship hearing can take place. Permanent Guardianship Permanent guardianship is a long-term arrangement for situations where a child’s parents are unable to provide care for an extended period or permanently. Relatives, close family friends, or others with a strong relationship to the child may request it as part of a family’s estate or care plan. Once granted, permanent guardianship remains in place until the child turns 18, unless the court modifies or terminates the order. While parents still retain some legal rights, the guardian has full authority over the child’s daily care, education, and medical decisions. 5 Practical Considerations When Choosing a Guardian Selecting a guardian for your child involves legal, emotional, and practical factors that can impact your child’s well-being and your family's peace of mind. Here are five key points to think about when making this important decision. 1. Is Your Chosen Guardian Legally and Practically Suitable? In California, a guardian must be at least 18 years old, mentally competent, and able to provide a stable home environment. But beyond meeting the basic legal requirements, consider whether the person is truly in a position to take on the responsibility, both emotionally and financially. Ask yourself: Does this person have the time and energy to care for a child full-time? Do they live in a location that would allow the child to maintain stability (school, friends, routine)? Are their values, parenting style, and lifestyle compatible with how you would want your child raised? It’s also important to think about any potential legal complications. For example, someone with a criminal record or ongoing financial problems may face challenges getting court approval. 2. Have You Considered the Child’s Needs and Preferences? Choosing a guardian isn’t just about who you trust; it’s also about what’s best for your child. Think about their emotional, educational, and medical needs, as well as their existing relationships with potential guardians. California courts may consider the preferences of older children, particularly those aged 12 or older. If your child is old enough to express a reasonable preference, involve them in the conversation, or at least keep their feelings in mind when making your decision. Also, consider factors such as: Does your child already have a strong bond with the proposed guardian? Will they need to relocate or change schools? Will their cultural, religious, or language background be maintained? 3. Do You Have the Right Legal Documents in Place? To make your decision legally enforceable in California, you must complete the proper paperwork and, in most cases, go through the court process. At a minimum, your guardianship plan should include: A nomination of a guardian in your will Any related forms required by the court (such as Form GC-210 for guardianship petitions) Supporting documents showing why the guardian is suitable Working with a family law attorney ensures that your documents are complete, accurate, and in compliance with California law. It also helps prevent delays or disputes during the court process. 4. Have You Communicated Your Plans With Key People? Once you’ve chosen a guardian, don’t keep it to yourself. It’s essential to communicate your decision with the proposed guardian to confirm they’re willing and able to take on the role. An unexpected guardianship can place strain on everyone involved, even if the court approves it. You should also consider talking to close family members, especially those who might expect to be involved in your child’s care. A transparent and open conversation now can prevent confusion, disagreements, or even legal disputes later. In some cases, families choose to write a short letter explaining their decision, which they can include with legal documents or share during the court process. 5. Are You Prepared to Review and Update As Life Changes? Guardianship planning isn’t something you do once and forget. Life circumstances can change: yours, your child’s, and the proposed guardian’s. The person who seems like the best fit today may not be the right choice in five or ten years. Make a point of reviewing your guardianship documents every few years or after major life events, such as divorce, death, relocation, or changes in relationships. You can update your nomination or modify your legal documents as needed. Keeping your guardianship plan current helps ensure the guardian you choose can continue protecting your child in accordance with your wishes. When to Contact a Guardianship Lawyer Planning for guardianship requires both selecting the right person and following the legal process. In California, the court must approve guardianship, and even straightforward cases involve paperwork, deadlines, and legal requirements that are easy to miss. You should contact a guardianship lawyer if: You want to formally nominate a guardian in your will or through the court. You’re unsure what type of guardianship fits your situation (temporary, permanent, emergency) There are complex family dynamics, such as disagreements among relatives or an absent parent. You need help completing or filing court forms correctly. You want to make sure your plan aligns with California law and will hold up in court. An attorney with experience will support you through each phase, explain your options, and help you avoid delays or errors. Most importantly, a guardianship lawyer ensures that you clearly document your wishes and that someone you trust protects your child. Frequently Asked Questions About Guardianship What are the grounds for guardianship in California? Families typically seek guardianship when a child’s parents are unable to provide care due to serious issues like illness, death, incarceration, substance abuse, or abandonment. In these cases, a relative, a close family friend, or another responsible adult can petition the court to appoint them as the child’s legal guardian. Are there any downsides to guardianship? Yes, there are a few considerations. First, guardianship requires court involvement, which can be time-consuming and emotionally difficult for families. It may also lead to disputes among relatives, especially if more than one person wants custody of the child. In some cases, parents may object or try to regain custody, which can create further legal challenges. Additionally, the guardian must take on full responsibility for the child’s well-being, including financial and medical decisions. What exactly does “guardianship” mean in legal terms? Legally, guardianship is a court order that grants a non-parent the authority to care for a minor and to make decisions on the minor's behalf. In California, this includes providing a home, enrolling the child in school, managing medical care, and handling day-to-day responsibilities. Guardianship is different from adoption; it doesn’t terminate the parents’ rights, but it does give the guardian legal authority to act in the child’s best interest. Secure Your Child’s Future Today Choosing a guardian is a critical decision for any parent. It ensures that a trusted individual will protect, support, and raise your child. We help California families navigate guardianship with clarity and care. Whether you are planning or facing an urgent situation, we guide you through the legal process and help you create a plan for peace of mind. Contact us today to take the next step toward securing your child’s future.
July 22, 2025
Threshold Question: Is the goodwill of attributable to a business opened during the marriage a quantifiable and divisible marital asset upon divorce? What is Goodwill? On the broadest level, “goodwill” is the expectation of continued public patronage. See Business and Professions Code § 14100. One court has described goodwill as “the advantage or benefit which is acquired by an establishment beyond the mere value of the capital stock, funds or property therein, in the consequences of public patronage and encouragement it receives from constant or habitual customers, on account of its local position, or common celebrity, or reputation for skill or affluence, or punctuality, or from other accidental circumstances, or necessity, or even from ancient partialities or prejudices.” See Marriage of Lyons (1938) 27 Cal. App. 2d 293, 297-298. Is Goodwill an Asset Which Can be Valued and Divided in a California Divorce? Yes. Incident to the valuation of a business, the court must determine whether goodwill exists. If goodwill exists, the goodwill must be assigned a value and factored into community property division. See Marriage of Greaux & Mermin (2014) 223 Cal. App. 4th 1242, 1251; see also Marriage of Watts (1985) 171 Cal. App. 3d 366, 370-372. How is Goodwill Valued in a Divorce? There is no “rigid and unvarying rules for the determination of the value of goodwill, but have indicated that each case must be determined on its own facts and circumstances.” See Marriage of Foster (1974) 42 Cal. App. 3d 577. While there is no bright line rule for valuing goodwill in a California divorce, courts generally utilize one of two approaches: Market Value Approach: Analysis of what a willing buyer would pay in cash for the community business if it were sold at the time of separation or divorce. Capitalization of Excess Earnings: Analysis of the net income of a professional practice for one year, subtracting of a reasonable salary for a person of comparable experience, and multiply by a number which is usually determined by an expert forensic accountant. In any event, goodwill cannot be valued by any method which takes into account post-marital efforts of either spouse. Where Do You Go From Here? If you are a business owner, or you are the spouse of a business owner, the issue of goodwill either exposes you to liability or gives you negotiating power in division of your estate upon divorce in California. Call one of our Southern California family law attorneys today to set up a consultation and talk about your rights and responsibilities. **DISCLAIMER** THIS INFORMATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. EVERY CASE IS DIFFERENT AND THIS GUIDE SHOULD NOT BE CONSTRUED AS LEGAL ADVICE. THIS ARTICLE DOES NOT CREATE AN ATTORNEY CLIENT RELATIONSHIP BETWEEN THE READER AND ITS AUTHOR. IF YOU HAVE LEGAL QUESTIONS, CONSULT WITH A FAMILY LAW ATTORNEY.