California Prenuptial Agreement with Financial Statements

Acknowledgement of Rights and Obligations / Premarital Agreement Disclosure / Premarital Agreement / Financial Statement

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 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).

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 way you hold title to real property will affect disposition of property upon death of a spouse.

2. DEBTS

Debts incurred during the marriage are presumed to be community property.

Debts incurred before marriage remain the responsibility of the person who originally incurred them.

3. DIVISION OF ASSETS AND DEBTS UPON DIVORCE

In dissolution of a marriage, the court is empowered to allocate assets of comparable value to the former husband and wife to make the overall division of the gross marital estate substantially equal.

If you own a home together and one spouse continues to reside in the home after separation, that spouse could owe "rent" to the community, subject to an offset for payment of the costs of the home.

If one spouse pays on community debts after separation, he or she will generally be reimbursed for those payments.

4. SUPPORT

Each spouse owes a duty of support to the other. Support can be ordered after separation.

Spouses are permitted to waive the right to support upon divorce in a premarital agreement.

5. CHILDREN

Each parent is entitled to custody of the children. Upon a separation, the court determines custody according to the best interest of the child.

Premarital agreements cannot waive or change the authority of the court to make orders regarding children.

6. PREMARITAL AGREEMENTS

Under California law, the property rights of husband and wife prescribed by statute may be altered by a premarital agreement.

Information on the enforceability of premarital agreements is contained in the “Premarital Agreement Disclosure” received and signed concurrently with this “Acknowledgement of Rights and Obligations.”

7. BY EXECUTING THE PREMARITAL AGREEMENT YOU WILL BE WAIVING ALL OF THE FOLLOWING RIGHTS:

(a) Division of community and quasi-community property;

(b) Support to either spouse in any amount and for any period of time that the court deems just and reasonable;

(c) The award of marital assets by the court on such conditions as it feels proper.

This statement of Rights and Obligations has been provided by .

I, , hereby acknowledge receipt of this Declaration of Rights and Obligations on this the day of , 20.

ADVISEMENT AND WAIVER OF RIGHT TO INDEPENDENT COUNSEL

RE: PREMARITAL AGREEMENT BETWEEN AND .

NAME OF DECLARANT:

RIGHT TO BE REPRESENTED BY AN ATTORNEY. I have been advised to seek independent counsel regarding a proposed premarital agreement between myself and .

WAIVER. I understand that I am giving up the rights stated above and hereby waive the right to independent counsel.

State of California

County of

On before me, , personally appeared , who proved to me...

WITNESS my hand and official seal.

Signature (Seal)

PREMARITAL AGREEMENT DISCLOSURE

AS STATED BELOW, IT IS VERY IMPORTANT THAT YOU BE REPRESENTED BY INDEPENDENT COUNSEL, OR WAIVE SUCH RIGHT.

NOTICE:

The parties understand fully the laws of California dealing with the validity of premarital agreements, including, but not limited to the following:

(a) A premarital agreement is not enforceable if the party against whom enforcement is sought proves either of the following:

(1) That party did not execute the agreement voluntarily.

(2) The agreement was unconscionable when it was executed...

(b) An issue of unconscionability of a premarital agreement shall be decided by the court as a matter of law.

(c) For the purposes of subdivision (a), it shall be deemed that a premarital agreement was not executed voluntarily unless...

WE HAVE FULLY READ AND UNDERSTAND THE ABOVE LAWS AND WERE PROVIDED THIS DISCLOSURE, A COPY OF THE PROPOSED PREMARITAL AGREEMENT AND WERE ADVISED TO SEEK INDEPENDENT COUNSEL AT LEAST SEVEN (7) DAYS BEFORE EXECUTION OF THE ACTUAL AGREEMENT.

DATE SIGNED MUST BE AT LEAST SEVEN DAYS BEFORE SIGNING THE AGREEMENT.

PREMARITAL AGREEMENT

THIS AGREEMENT, made this day of , 20, between and .

Address: and .

W I T N E S S E T H

WHEREAS, Husband (check all that apply):

has previously been married;

has a child or children;

has not been married;

Wife (check all that apply):

has previously been married;

has a child or children;

has not been married.

The parties desire to enter into this agreement prior to their contemplated marriage.

WHEREAS, the parties hereto have accumulated separate estates; and

NOW, THEREFORE, in consideration of the parties and of their mutual promises and agreements, they agree one with the other as follows:

(1) Each of the parties shall have full control of his or her own separate property...

(2) Except as otherwise expressly provided, each of the parties hereby waives, relinquishes, conveys, quitclaims, bars, discharges, surrenders and releases...

(3) (check One)

The parties have each executed a Last Will and Testament, copies of which are attached hereto as Exhibits and .

OR

The parties shall not change their existing Will, if any, or make a new Will at this time.

(11) Not applicable or The parties further agree that in the event of divorce, the following additional provisions shall apply...

(a) The Wife shall be entitled to receive property of Husband described as follows:

(b) The Husband shall be entitled to receive property of Wife described as follows:

(c) The following property shall be sold and the proceeds, less expenses divided equally between the parties:

(d) The Husband shall pay a lump sum settlement to Wife described as follows:

(e) The Wife shall pay a lump sum settlement to Husband described as follows:

(f) The marital domicile shall be

(g) Both parties waive the right to alimony and property settlement, except as otherwise provided herein.

(h) Both parties waive all community property rights.

The parties agree this agreement shall be binding on both parties and shall be incorporated into any divorce decree.

(18) Each party further agrees and affirms as follows:

(a) That the party did execute the agreement voluntarily;

(b) That this agreement is not unconscionable when it was executed;

(c) Both parties were provided prior to execution of this agreement a fair and reasonable disclosure of the property and financial obligations of the other party;

(d) That he and she did have, or reasonably could have had, an adequate knowledge of the property and financial obligations of the other party.

Note: This Agreement must be executed before a notary public.

State of California

County of

On before me, , personally appeared , who proved to me...

WITNESS my hand and official seal.

Signature (Seal)

PERSONAL FINANCIAL DISCLOSURE STATEMENT

To: Date:

Individual Information

Name:

Address:

City: State: Zip:

Occupation:

Phone:

Current Assets / Current Liabilities

Individual Income Information (Annual)

Contingent Liabilities

SCHEDULE A - REAL ESTATE

SCHEDULE B - MOTOR VEHICLES

SCHEDULE C - U.S. GOVERNMENT SECURITIES

SCHEDULE D - NON MARKETABLE SECURITIES

SCHEDULE E - STOCKS

SCHEDULE F - NOTES PAYABLE SECURED

SCHEDULE G - NOTES PAYABLE UNSECURED

SCHEDULE H - REAL ESTATE MORTGAGES

SCHEDULE I - AUTO LOANS

CERTIFICATION TO FINANCIAL STATEMENT

I certify this Statement to be true and correct as of the date indicated; that this financial statement is a full and fair disclosure of my assets; and that I provided a true and correct copy of this financial statement to on