A marital property agreement can play an important role in creating clarity about ownership and avoid costly disputes during a divorce.
The property that a person owns prior to marriage is that person’s separate property . After marriage, any property acquired during the marriage – such a wages or profits from a business or investments – are presumed to be community property.
Agreements regarding marital property may be made either prior to or after marriage.
- The purpose of a marital property agreement made prior to marriage is to:
1. identify each person’s separate property, and
2. define how income received during marriage will be classified (i.e., separate or community).
Additional features may be included in a pre-marital (pre-nuptial) marital property agreement.
- The purpose of a marital property agreement made after marriage is to:
1. identify each person’s separate property, or
2. to divide community property into separate property, or
3. to convert separate property into community property.
Other features may be included in the post marital (post-nuptial) marital property agreement.