How Much Does a Prenuptial Agreement Cost in California?
Based on ContractsCounsel's real life marketplace data, the average cost of a prenuptial agreement in California is $690.00 [1]. This includes all types of prenup projects. Below is a summary:
What is a Prenuptial Agreement?
A prenuptial agreement, commonly shortened to “ prenup,” is a legally binding contract executed by couples before marriage. A prenup is a helpful planning tool for couples because it documents each person's assets and debts before the marriage and acts as a settlement agreement if the couple divorces.
Suppose a couple marries without a prenup in place. Then, if they ever get divorced, they will be subject to their state’s divorce laws for property division.
California is a “ community property ” state. This means that any new assets or debts acquired by a spouse automatically belong to the other at the start of a marriage. In addition, California state laws require that all marital assets and debts be split equally in a divorce.
One criticism of community property laws is that they tend to favor the spouse in the marriage who earns less. Even if one spouse contributes zero money during the marriage, they will still end up with half the assets in a divorce.
To avoid this automatic property division, couples can use a prenuptial agreement to dictate how they want their assets to be divided in a divorce. A prenuptial agreement must be adequately drafted, so it is common for couples to hire an attorney for help. A lawyer will know how to draft a contract that protects both parties and is legally enforceable under California laws.
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What's Typically Included in a California Prenuptial Agreement
In California, prenuptial agreements are governed by the Uniform Premarital Agreement Act (UPAA), so every prenup must adhere to these laws. Every prenuptial agreement will be different based on the couple, but the most common items covered in a prenup include:
- Premarital assets. A list of each person's assets before entering the marriage and how the assets will be treated after the marriage.
- Premarital debts. A list of each person’s debts before the marriage and who will be responsible for the debts after the wedding.
- Marital assets. California considers any property gained during the marriage equally owned by both spouses. However, a prenup can override this law and dictate that certain assets remain the sole property of one spouse.
- Marital debts. Like assets, in California debts acquired during the marriage will be both spouses’ responsibility. Prenups can be used to split up any marital debt.
- Right to alimony. The couple can agree whether one spouse will pay alimony to the other.
- Distribution of property. How property will be divided in a divorce.
- Inheritance. Suppose either spouse has children from a previous marriage. In that case, the prenup can dictate what assets will go to the children if their parent dies.
In addition to these clauses, California prenups are unique because they allow couples to include information about the rights, roles, and responsibilities of each partner in the marriage if the terms do not violate public policy. Some examples of roles and responsibilities can include:
- Who is expected to pay specific bills
- How tax returns are filed
- How bank accounts are handled
- Rules for large purchases
To be legally enforceable, prenuptial agreements must be made voluntarily with one’s free will and signed by both parties.
Benefits of a Prenuptial Agreement
Considering that half of all marriages end in divorce, prenuptial agreements have become valuable documents that provide spouses with many benefits, including:
- Protection of assets
- Protection from debts
- Customized plan to distribute assets in a divorce
- Avoidance of a typical divorce settlement
- Comprehensive planning for the future
- Peace of mind knowing that financial matters are settled
Types of Prenup Projects
A lawyer that helps with prenups can complete a number of different types of projects for clients. The two most common projects are drafting, or creating a prenup on behalf of their client, and reviewing, which is reviewing a prenuptial agreement that was already drafted. Let's explore both.
Drafting a New Prenuptial Agreement
In California, a prenuptial agreement is not legally binding if an attorney doesn’t represent both parties. For this reason, couples must hire family lawyers to draft their prenuptial agreement even if there are no disputes over the terms and conditions.
The lawyer hired to draft the agreement will record the couple’s assets and debts and create a comprehensive agreement that includes the couple’s terms and wishes for their property.
Reviewing an Existing Prenup
Both parties must be represented by a lawyer to have a valid prenuptial agreement in California, so the party who did not draft the prenup will need to retain a lawyer to review the contract on their behalf.
The lawyer will review the prenuptial agreement with their client’s needs and interests. The attorney will ensure that the prenup is fair and that their client fully understands all the terms and conditions to which they agree.
How Much Does it Cost to Draft a California Prenup?
When a couple hires a lawyer to draft their prenuptial agreement, they will incur legal fees because drafting a contract requires a licensed lawyer's time and legal expertise.
According to ContractsCounsel's marketplace data, the average cost to draft a prenup in California is $930.00.
How Much Does it Cost to Review an Existing California Prenup?
Hiring an attorney to review a prenuptial agreement also comes with legal fees. The lawyer will use their legal expertise and knowledge of California law to review the contract and make sure their client’s rights are protected.
ContractsCounsel's marketplace data shows that California's average prenuptial agreement review costs are $540.00.
How Do California Lawyers Charge for a Prenuptial Agreement?
Hourly Rates for Prenups
An hourly rate fee structure is one of the more popular arrangements for hiring a family law attorney in California. When using an hourly rate structure, the attorney will bill the client at a set hourly rate for the number of hours worked on the project.
Billable hours can include:
- Meeting with the client to discuss the content of the prenup
- Time spent drafting
- Revisions
- Being present when the agreement is signed
The marketplace data for ContractsCounsel shows that the average hourly rate for a family lawyer in California ranges from $200 - $350 per hour.
Flat Fees for Prenups
Flat rate billing structures are becoming more common for contract drafting projects. When using a flat fee rate, a lawyer will provide the client with a quote for the entire job. If the client agrees, they will pay upfront, and the lawyer will begin working on their case or project.
Clients usually prefer flat fee rates because they know their total bill before agreeing to legal services. In addition, lawyers benefit from this fee structure because they collect payment upfront and don’t have to keep track of their billable hours.
ContractsCounsel's marketplace data shows the average flat fee rate for a prenuptial agreement in California is $690.00.
Who Pays for a Prenuptial Agreement?
Legal fees for prenups are paid by the individuals within the couple that plan to get married. Each are responsible for their owns fees, but may choose to use a joint account to pay for the work.
In California, each couple is required to hire a lawyer to represent them when getting a prenuptial agreement in place before a wedding. So each member of the couple will need to pay legal fees.
There may be certain situations where parents of the engaged couple insist they put a prenup in place (potentially because of inheritance reasons), so they may end up paying the legal fees associated with the prenup.
How To Get a Prenup in California
Getting a prenuptial agreement will involve finding and hiring a family law lawyer that has a deep understanding of the laws in California to make sure the couple is legally protected. The different ways you can find a lawyer are:
- Post a project on a legal marketplace, like ContractsCounsel, to get quotes from lawyers to handle the project.
- Find lawyers by Googling them online and making inquiries into their offices.
- Go to the California State Bar website to find lawyers and make inquiries.
- Ask for referrals within your personal network to a family law lawyer.
Online templates are widely available, however, California requires legal representation for a prenup to be valid, so you will ultimately need to hire a lawyer. Most lawyers do not like working with prenuptial agreement templates since they find them inadequate and spend more time cleaning them up than working from their own baseline template.
If you want to find a quick way to get quotes from vetted California family law lawyers, post a project on ContractsCounsel’s marketplace. You can expect to receive multiple quotes from lawyers in our network on a flat fee basis and be able to speak to them before hiring.
