Prenuptial Agreement / Assets/Debts
Although the provisions of a Prenuptial Agreement typically include language stating that the disclosure of assets held prior to the marriage is not intended as an inducement to marry (just as the disclosure of debts is not intended to discourage a marriage from occurring), this is an important step in the process. By disclosing assets, each party specifically identifies what assets are owned prior to the marriage that will be protected by the Prenuptial Agreement, identifying those items as remaining the sole and separate property of that party. Also, by disclosing debts, the parties are better able to work together in deciding on how to treat income, as well as how expenses may be divided fairly. Standard language in Prenuptial Agreements is that the debts brought to the marriage will remain the separate obligation of that party whose debt it was and that if any community property income/funds are spent paying on such debt, the community is entitled to reimbursement form that party.
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