Among high net worth couples in the process of divorce, property issues can be considerably complex, and often contentious as well. In a recent post we discussed marital property transfers known as transmutation agreements, and how they may become objects of conflict during divorce proceedings relating to asset division. We have also covered, in previous posts, the role of prenuptial and postnuptial agreements in a marriage or domestic partnership. Here we will address the midnuptial agreement, or midnup, and how its role differs, often, from its fellow marital agreements.
Readers of this blog are already aware of the seriousness of the fiduciary duty between spouses/partners. They might also be aware that prenups and postnups can serve to simplify or reinforce the path toward equitable asset division in a divorce. So, what does a midnup do that these other agreements do not?
First, it is important to remember that not every marriage ends in divorce. Just because a couple has a midnup created does not mean they have an eye toward termination of their relationship. In fact, a midnup is often done with tax advantages or estate planning goals in mind, because the property transfer(s), or transmutation(s) contained in a midnup may serve those purposes well. A midnuptial agreement may change, or reclassify, an asset held in a certain way, changing separate property to community property, or vice-versa. And yes, a midnup may very well come to bear should a divorce occur later on – particularly here in California, a community property state.
This blog and its content are intended not as legal advice, but only for information and/or discussion purposes. Should you have questions or concerns about how California family law may apply to you, you may wish to consult a knowledgeable family law attorney.
As Orange County’s premier family law specialists, the attorneys at Dinnebier & Demmerle can provide answers to your questions and concerns, clarify and establish your legal rights, and represent you in court. If you would like more information about midnuptial agreements in divorce, or any other aspect of California family law, please call to set up a consultation. We’re ready to move forward when you are. Just contact us in Tustin at 714-598-3714.