The Complete Guide to a Postnuptial Agreement in California

Each year, hundreds of thousands of couples file for divorce in California. But here’s what’s more interesting: couples with clear financial agreements are significantly more likely to report higher marriage satisfaction.

Welcome to the new world of postnuptial agreements, where protecting your assets actually strengthens your relationship.

Whether you’re managing a thriving business, inheriting family wealth, or simply setting clear financial expectations, a postnuptial agreement provides a path to peace of mind and a stronger partnership.

What is a Postnuptial Agreement?

At its core, a postnuptial agreement also known as a postnup, is a legal contract made between spouses after marriage. It outlines how assets, debts, and financial responsibilities will be managed during the marriage or divided in a divorce.

Unlike prenuptial agreements, which are signed before marriage, postnups address financial realities that arise later.

Postnuptial agreements are particularly valuable in California, where community property laws treat most assets acquired during marriage as jointly owned.

With a postnup, couples can redefine these default rules to reflect their unique circumstances.

The Evolution of Postnuptial Agreements

From Skepticism to Acceptance

Historically, courts were hesitant to recognize postnuptial agreements, fearing they could lead to coercion or disrupt the marital relationship.

Marriage was often seen as an indivisible financial unit, making such agreements seem unnecessary.

The Dawley Case: A Legal Milestone

The 1976 California case In re Marriage of Dawley changed this perspective. The court upheld that postnuptial agreements could be valid as long as they were fair, transparent, and voluntary.

This landmark ruling paved the way for modern postnups to become vital tools for financial and marital planning.

Why Couples Choose Postnuptial Agreements

A postnuptial agreement offers more than just financial protection. Here’s what it can do for your marriage.

Benefits of a Postnuptial Agreement

Protecting Business Interests

For entrepreneurs and business owners, a postnuptial agreement ensures that a company remains separate property, safeguarding its ownership and profits in case of divorce.

Clarifying Financial Responsibilities

Money can often be a source of conflict in marriage. A postnuptial agreement helps establish clear expectations for managing expenses, debts, and savings.

Inheritance Planning

For families with significant assets, postnups ensure inheritances remain within the intended family lineage, providing clarity for both spouses.

Rebuilding Trust

When couples face challenges like infidelity or financial disputes, a postnuptial agreement can help rebuild trust by fostering transparency and accountability.

How to Create a Legally Enforceable Postnuptial Agreement in California

A postnuptial agreement must meet certain legal standards to hold up in court. Here’s how to create one that is enforceable under California law:

1. Full Financial Disclosure

Both spouses must provide a complete and honest account of their financial situations, including assets, debts, and income. Concealing any information can lead to invalidation of the agreement.

2. Voluntary Agreement

The agreement must be entered into willingly, without coercion or undue pressure. Both spouses should feel free to negotiate and decline terms.

3. Independent Legal Representation (Optional but Strongly Recommended)

Although not legally required, having separate attorneys ensures that both parties understand their rights and the potential consequences of the agreement. It also helps establish fairness and reduces the risk of future disputes.

4. Fair and Reasonable Terms

The terms must be equitable at the time of signing. Agreements that heavily favor one spouse or are deemed “unconscionable” may be rejected by the court.

5. Written and Signed

Verbal agreements are not enforceable. The postnuptial agreement must be documented in writing, signed by both spouses and ideally notarized to strengthen its validity.

If any of the above requirements are not met, a court may declare the agreement unenforceable.

What Can and Cannot Be Included in a Postnuptial Agreement

Postnuptial agreements are highly flexible but must stay within certain legal boundaries.

What Can Be Included

• Property Division: Specify how assets will be classified as separate or community property.
• Debt Allocation: Clearly define who is responsible for existing or future debts.
• Spousal Support: Include terms for alimony, such as amounts or waivers.
• Business Ownership: Protect businesses and professional practices from division during divorce.

What Cannot Be Included

• Child Custody or Support: Courts determine these based on the best interests of the child, regardless of any agreement.
• Illegal Provisions: Any terms that violate public policy, such as unfair or coercive clauses, will not be enforced.
• Unconscionable Terms: Courts may reject agreements that are overly one-sided or unfair at the time of signing.

Your Next Steps Toward Financial Security

A postnuptial agreement is more than just a legal document—it’s a way to protect your assets, clarify your financial plans, and strengthen your marriage. By addressing financial matters proactively, you can focus on what truly matters: building a secure and lasting partnership.

To get started, contact Provinziano & Associates at 310-820-3500.

Our experienced attorneys are here to guide you through every step, ensuring your agreement is tailored to your unique needs.