A prenuptial agreement (also called a “prenup”) is a legal contract entered into before marriage to establish how assets, debts, and financial matters will be handled if the marriage ends in divorce. In California, prenuptial agreements are governed by the Uniform Premarital Agreement Act (UPAA) and must meet strict legal requirements to be enforceable.
If you’re considering a prenuptial agreement in California, you may wonder, “How much does a prenup cost?” The answer depends on several factors, including the complexity of your finances and the attorneys involved. Below, we break down the key factors that affect the cost of a prenup in California and what you can expect to pay.
What Is the Average Cost of a Prenuptial Agreement in California?
The cost of a prenuptial agreement in California typically ranges from $2,500 to $10,000 or more. However, simple prenups with minimal assets may cost less, while more complex agreements involving substantial assets, businesses, or trusts can cost $20,000 or more.
Here’s a breakdown of what you might expect:
Prenup Type Estimated Cost
Simple prenup (few assets) $2,500 to $5,000
Moderate complexity prenup $5,000 to $10,000
Complex prenup (businesses, trusts) $10,000 to $20,000+
Factors That Affect Prenup Costs in California
Several factors influence how much your prenuptial agreement will cost:
1. Attorney Fees
Most of the cost of a prenuptial agreement comes from attorney fees. In California, family law attorneys typically charge $575 to $850 per hour for drafting and negotiating prenups.
Both parties are advised to hire their own attorneys to ensure that the agreement is fair and enforceable. Each party’s attorney fees will increase the total cost of the prenup.
✅ Tip: To save money, look for attorneys who offer flat-fee prenup packages rather than hourly billing.
2. Complexity of Assets
The more complex your financial situation, the more expensive the prenup will be. Factors that increase costs include:
Ownership of a business
Real estate holdings
Investment accounts
Trusts and estates
Debts (including student loans, mortgages, etc.)
Intellectual property rights
If your prenup needs to cover detailed financial arrangements, such as protecting a family business or inheritance, expect to pay more.
3. Negotiation Time
If there is disagreement between the parties during prenup negotiations, it can significantly increase costs. The more back-and-forth between attorneys, the higher the legal fees.
✅ Tip: To reduce costs, try to agree on key terms with your partner before involving attorneys.
4. Whether a Business Valuation or Appraisal Is Needed
If one or both parties own a business, it may be necessary to get a business valuation to determine its worth. This can add $5,000 to $20,000 to the cost of a prenup.
Similarly, if real estate or other valuable assets are involved, appraisals may be required, increasing the overall cost.
Why Is a Prenup More Expensive in California?
Prenups tend to be more expensive in California for several reasons:
Community Property Law: California is a community property state, meaning that assets acquired during the marriage are typically divided equally in a divorce. A prenup can override these default rules, making it essential to draft a thorough and enforceable agreement.
High Cost of Living: Legal services in California, especially in cities like Los Angeles, San Francisco, and San Diego, tend to be more expensive than in other states due to the higher cost of living.
Complex Financial Situations: Many Californians have complex financial situations involving real estate, businesses, and high-value assets, which require more extensive legal work to protect.
How to Save Money on a Prenuptial Agreement in California
Here are some ways to keep your prenup costs down:
Use a Flat-Fee Prenup Lawyer: Some California attorneys offer flat-fee packages for prenuptial agreements. This can help you avoid unexpected costs.
Agree on Terms in Advance: The more you and your partner can agree on before involving lawyers, the less time they will need to spend negotiating on your behalf.
Avoid Templates: While online prenup templates are available, they are unlikely to be enforceable in California and may cost you more in the long run if challenged in court.
Is a Prenuptial Agreement Worth the Cost?
Many couples wonder whether a prenup is worth the expense. Here are a few reasons why a prenuptial agreement can provide significant long-term value:
Protects Your Assets: A prenup can protect premarital assets, family businesses, and inheritances.
Clarifies Financial Expectations: A prenup can help establish clear financial expectations for both parties, reducing future conflicts.
Reduces Divorce Costs: In the event of a divorce, a well-drafted prenup can save thousands of dollars in legal fees by simplifying asset division.
Legal Requirements for Prenuptial Agreements in California
For a prenuptial agreement to be enforceable in California, it must meet the following legal requirements:
Voluntary Agreement: Both parties must sign the prenup voluntarily.
Full Disclosure: Both parties must provide full disclosure of their assets and debts.
Seven-Day Waiting Period: There must be at least seven days between presenting the final agreement and signing it.
Separate Legal Representation: Each party should have their own attorney to ensure the agreement is fair and enforceable.
What Happens If You Don’t Get a Prenup?
Without a prenuptial agreement, California’s community property laws will apply to your marriage. This means that any assets acquired during the marriage will be divided equally in the event of a divorce. Additionally, debts acquired during the marriage will also be shared equally, regardless of who incurred them.
Conclusion: How Much Should You Budget for a Prenup in California?
When planning for a prenuptial agreement in California, expect to pay anywhere from $2,500 to $10,000+, depending on the complexity of your finances. While this may seem expensive, the cost of a prenup is often a fraction of the potential costs of a contentious divorce without one.
To ensure your prenuptial agreement is legally enforceable, hire experienced California family law attorneys who understand the state’s community property laws and can tailor your prenup to your unique financial situation.
Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions, call (626) 460-1763 or email LV@MoravecsLaw.com.
Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.
Comentarios