Fill and Sign the Hereinafter Referred to as Landlord and Lessees and Form

- 1 - ACKNOWLEDGEMENT OF RIGHTS AND OBLIGATIONS RE: PREMARITAL AGREEMENT BETWEEN AND . I , hereby acknowledge my understanding of the following rights and obligations of the parties to a Premarital Agreement under the laws of the State of California: 1. ASSETS California is a community property state. All property acquired by a married person during their marriage while living in California is presumed to be community property. Upon death or divorce, the value of all community assets is divided equally in terms of value between both spouses. Both marital partners are equal agents of the partnership, and able to bind the partnership if acting within the scope of his or her authority and if acting for the joint benefit of the family. The California community property system adds to joint ownership the right of equal management and control. All benefits which come from either spouse's employment during the marriage are community property to the extent they are earned and/or accrued during the marriage. This can include retirement benefits, pensions, savings plans, stock purchase plans, 401k plans, sick and vacation pay, and stock options. If the benefits are not fully vested at the time of a separation, an allocation is made between the community and separate interests. Separate property is property: a) owned before marriage, b) acquired during marriage by gift or inheritance, or c) acquired after separation. Earnings, income or appreciation from separate property sources remains separate property. If there is a dispute about whether an asset is separate property, you must have proof that you acquired the separate property in one of these ways, and have documentation to trace the separate property back to the original source. If you use separate property to acquire property in joint names during the marriage, you are only entitled to reimbursement for the amount of the separate property contributed (no interest or appreciation) and again, you must be able to trace the contribution back to the separate property source. If you own a business prior to marriage, the community may acquire an interest in the business if the business increases in value during the marriage, depending upon the reason for the increase in value. If you own a home in your own name and community funds are used for mortgage payments or to pay down the principal on a loan, the community will acquire an interest in the appreciation in the value of the property, but only in the ratio that the amount paid on principal bears to the total purchase price. The community will also be reimbursed for the amount paid down on principal
2. Marital debts. If both spouses receive monthly alimony (financial payments), the money must be earned during the marriage. Separate property does not exist for alimony, but all money received while married remains separate property. 3. Medical expenses. When the marriage ends, a spouse may elect to pay alimony until the property is sold. If the recipient spouse dies, the balance of the payments is payable to the surviving spouse. The recipient spouse must make the payments during the marriage or the money will become community property and will revert to the community if the married couple separated after the wedding. If you want the community to receive medical care on your house while you are out of town, you must apply to do this within one year after the divorce. This allows the community time to build a reputation. If you want the community to receive medical care on your house, and you have other debts, you can ask if you can get help from the community to pay those debts on your behalf. If you and/or your spouse have other unpaid debts or claims that the community will assist you with, you must have written notice of the agreement on both sides, and this will be provided to you as soon as possible before the court can approve it. This notice must advise the recipient spouse that the community will make the payment before the court. The community must make the payment within 30 days, unless you file an appeal from the decision of the court making the payment. 4. Property. This title document contains a statement that indicates title to any and all real and personal property at the time of the marriage. If you and/or your spouse had any property before the marriage, that property must be included in your separate property. This includes: a) personal property; b) the marital home, when it becomes separate property; c) the personal possessions which belong to the former spouse; and d) business property which belongs to and is the subject of a separate contract between you and the former spouse. It does not cover things that you and/or your spouse may have purchased together as the couple went through the divorce process. The court recognizes a “separate agreement" for certain "real property” issues, as described more fully in the section below on “marital property and divorce." these issues are also addressed at section 2, above, regarding “assessment and recovery of common wealth.” 5. Family property. This title document also contains a statement that shows the value of the property to be divided and the distribution to the spouses if.