A prenuptial agreement is a legal contract between two people who plan to get married, should the marriage eventually fail (as roughly half of all marriages do). A prenup settles crucial questions such as:
- Who owned what prior to the marriage?
- How property acquired during the marriage will be divided upon divorce?
- What spousal payments will occur after the marriage ends?
The benefits of signing a prenuptial agreement in Texas are extensive, and it often makes excellent financial sense to enter into one of these agreements.
Avoiding a Messy Divorce
If it comes to divorce in the first place, there are almost certainly hard feelings, confrontations, and deep frustration. Add money to that mixture and the dispute becomes explosive. Many divorcees have lamented after the fact that they didn’t sign a prenuptial agreement. In Texas, a prenup is a reliable tool to avoid much of the chaos of a messy divorce, especially a high net worth divorce.
Young Newlyweds Have More Prenuptial Wealth to Protect
When you sign a prenuptial agreement in Texas, you can protect your existing assets and investments, including inheritance rights, business ownership, and other sources of wealth that often become a major point of contention in divorce proceedings.
A growing trend of younger generations is to marry later in life than their parents and grandparents did. With this delay comes a corresponding increase in the wealth they bring to a relationship. The same is true for older individuals entering into a second or third marriage. The more wealth you have prior to getting married, the stronger the arguments for a prenuptial agreement become.
Establish How Assets Will Be Divided
Prenuptial agreements are especially helpful when it comes to dividing co-owned property acquired during the marriage.
Settling the Question of Spousal & Child Support Payments
Known as spousal maintenance, many divorces result in an agreement that one spouse will provide various forms of financial support to the other. These costs can potentially be very significant, which strengthens the case for signing a prenuptial agreement in Texas prior to your marriage.
And while a prenup cannot be used in determining child custody, it can be used to settle the question of what sort of compensation will be provided in the event one of the parents leaves the workforce to care for the kids.
Protection Against Spousal Debt
A prenuptial agreement isn’t just about protecting wealth. It can also provide protection against debt liability if you plan to marry someone who carries a lot of debt. The average American household carries roughly $140,000 in debt. Many of today’s college graduates can vouch for the enormous debt load that comes with their diploma, to say nothing of the debts from home, auto, or business loans.
By signing a prenuptial agreement in Texas, each spouse can limit their liability to existing debts carried by the other partner, thereby providing considerable protection.
Let Ramos Family Law Help You Shape This Crucial Document
While once written off as cynical and cold-hearted, prenuptial agreements have proven to be valuable instruments of personal protection, and today they are growing in popularity.
Prenups must comply with the Texas Family Code and other applicable laws, and must be written carefully so as to minimize the risk of being invalidated or misinterpreted if challenged.
Ramos Law Group has years of experience in drafting and negotiating these contracts. Contact us today to discuss your situation.