Why Everyone Needs a Premarital Agreement

Responsible financial planning includes protecting your assets from unnecessary risk. In addition to safeguarding your finances, a premarital agreement can also be useful in coupling with your estate plan. This may be especially true in the event of a second marriage that comes later in life.

But before we get into the benefits, let’s review what we mean by a prenuptial agreement.

What is a Prenup?

A premarital agreement is a legally binding contract that future spouses use to determine how assets will be divided if unforeseen circumstances occur, such as divorce, or legal separation.

During the length of a marriage, it can become confusing which assets are separate, and what’s shared. Financial concerns are one of the most common sources of relationship conflict, but having an agreement in place before the wedding day draws clear lines, and offers peace of mind.  

Here are 5 reasons why you need a prenuptial agreement:

Premarital Agreements for Financial Transparency

Premarital agreements require both individuals to examine the greater financial picture, allowing for conversations about money. Being open about financial matters from the start sets a healthy precedent for future discussions, and increases trust.

Business Owner

In particular, business owners need the protection a premarital agreement provides. If the marriage doesn’t last, the business could end up being divided.

State Laws

States have their own laws governing the division of assets, however, a premarital agreement takes precedence, regardless of where you call home.

Deep in Debt

It’s not uncommon for people to enter a marriage with significant debt from student loans, or credit cards. Without a premarital agreement, you could be vulnerable to your spouse’s financial burdens. 

Spousal Support

You can contract around the state’s guidelines for spousal support by specifically terminating the rights to spousal support. Or, designating the amount and duration of any future spousal support. If the prenup addresses spousal support, both sides must be represented by independent attorneys for the terms to be enforceable. Also, be aware, if at the time of enforcement the court deems the spousal support provisions in your agreement are unconscionable, it will not enforce those terms.

Our Premarital Agreement Services

If you were recently engaged, legally planning for worst-case scenarios is probably the last thing on your mind. But a premarital agreement can be reframed as a document that defines your lifelong commitment to each other, including your values and priorities.

For an agreement to be valid in court, both spouses-to-be must have their own legal counsel. To schedule an appointment, please contact our office at (925) 344-5050.

Tammy J. Mercado

Tammy J. Mercado has a passion for helping her clients achieve their desired results. She listens and she personally and promptly responds to your texts, emails and phone calls. She offers real solutions to your legal matters. Tammy will carefully evaluate the legal issues in your case, provide you with sound advice and offer you the pros and cons of each possible scenario so you can meet your legal objectives. She encourages clients to participate in their own matters. Tammy believes that client participation is key to a positive result and to keeping attorney fees as low as possible. You can be sure that she will offer you straightforward, sound and honest advice in a professional manner, with integrity and excellence.

Before opening her own law practice, Tammy worked for many high-volume law firms. This gave her extensive, diversified experience in hundreds of complex family law cases as well as civil matters. She is admitted to practice law before all courts in California and the United States District Court for the Northern District of California. She is also a member of the American Bar Association, the Contra Costa Bar Association, the Alameda County Bar Association and the Bar Association of San Francisco. Tammy is also a member of the Rotary Club of Danville.

Tammy is a graduate of John F. Kennedy School of Law and holds a Bachelor of Science in business management from the University of Phoenix. Tammy is also a licensed real estate broker, which comes in handy for valuing property in family law cases as well as real estate matters in the civil arena.

During her off time, Tammy is an avid sailor who crews and races on various boats in the San Francisco Bay. Tammy approaches each case as she would any yacht race: by assessing the other’s strengths, weaknesses, experience, equipment, history and reputation. She is a member of the American Sailing Association, and she is a certified Coast Guard Auxiliary member.

HONORS AND AWARDS
Tammy was selected to receive the prestigious “Business Person of the Year” Award in 2017 for the San Ramon Chamber of Commerce.

Tammy is currently serving as Danville Rotary President for 2017 through 2019.

Mary C. Whipple, CFLS

Mary C. Whipple opened her first law practice in the summer of 2008. She previously was an associate attorney at the Law Office of Cummins & Holmes, a full-service civil litigation law firm in San Ramon. The majority of her experience is in family law, which includes divorce, custody, support, prenuptial agreements and domestic-violence restraining orders. Certified by the California State Bar’s Board of Legal Specialization, she is a specialist in the area of family law. Mary has also represented clients in a variety of non-family-law cases, including juvenile dependency, probate, breach of contract and employment disputes, to name a few.

Mary also previously worked as a contract attorney for O’Melveny & Meyers in San Francisco while simultaneously volunteering at the Bar Association of San Francisco’s Volunteer Legal Services Program, representing defendants in unlawful detainer actions. The program acknowledged Mary with an Outstanding Volunteer in Public Service Award in 2006 for her efforts in providing access to justice.

A seventh-generation Californian, Mary is a graduate of Loyola University Chicago School of Law. She earned her Bachelor of Science in criminology at Southern Oregon University in Ashland, Oregon. She is a member of the State Bar of California, the Alameda County Bar Association, and the Contra Costa County Bar Association.

In addition, Mary is active in her community as a member of the Ambassador’s Committee for the San Ramon Chamber of Commerce; a volunteer at the Contra Costa County and Alameda County Superior Courts, where she assists self-represented litigants in completing their divorces; and a member of Divorce Angel, where she provides information regarding family law matters to members of the community. Since 2007 she has been a volunteer judge for Alameda and Contra Costa County’s Annual High School Moot Court Competition. She is also a member of the Danville/Sycamore Valley Rotary Club. She was awarded the San Ramon Chamber of Commerce 2012 Business Person of the Year; and a graduate of the 2012 class of Leadership San Ramon Valley.

CERTIFIED LEGAL SPECIALTIES
Certified Specialist in Family Law by the State Bar of California Board of Legal Specialization