Attorney Jason Wright Helps Hutto, Texas Couples Clarify Their Plans Before Marriage
Marriage is a partnership. Texas law recognizes married spouses as partners, and facing life’s decisions together requires significant partnership work.
As in every partnership, each spouse brings a unique perspective, personal history, values, and tastes to the table. Each spouse may also bring certain assets, debts, family relationships, and other factors to the new marriage.
A prenuptial agreement or premarital agreement helps the soon-to-be spouses articulate a shared vision for the marriage. It helps them determine how they’ll divide assets and debts for themselves and any children or other dependents. If the couple later decides to end the marriage partnership, the prenuptial agreement can help them do so with less stress and conflict.
At the Law Office of Jason Wright, our experienced Hutto prenuptial agreement attorneys have extensive experience helping couples articulate their shared vision and include it in a valid prenuptial agreement. We can help you strengthen your lines of communication and enter your marriage confident that you’ve laid the groundwork for a strong partnership.
Basics of Texas Prenuptial Agreements
In a prenuptial agreement, two soon-to-be spouses outline what will happen if the marriage ends – for example, if the spouses later divorce or one spouse dies.
Prenuptial agreements are optional in Texas. Without one, however, the couple’s divorce will be governed by Texas’s default rules for divorce. For example, the couple’s property will be divided according to Texas’s community property rules. The spouses will have limited options for determining which property should stay with which spouse.
A prenuptial agreement is a legal contract. When two spouses create a premarital agreement, they are bound by its terms. Some exceptions exist, but these are narrow. An attorney can help you ensure that your interests are represented and your resulting prenuptial agreement is valid.
Contents of a Prenuptial Agreement
Most prenuptial agreements focus on property-related questions. Common focus areas of a prenuptial agreement include:
How can each spouse use or transfer property after divorce? For example, a premarital agreement may explain each spouse’s right to a family or vacation home after divorce. It may outline how each spouse can access the couple’s frequent flyer miles or investment accounts.
How will the spouses divide the property they acquired during the marriage? Texas’s community property rules presume that all property the spouses acquire during the marriage belongs to the community estate. After divorce, spouses are “on their own” for items like home, auto, or health insurance. The premarital agreement can lay out different terms, such as assigning certain retirement vehicles to certain spouses or placing one spouse in charge of paying for insurance on a family vacation home.
How should property be managed if a spouse dies? A prenuptial agreement cannot replace an estate plan, but it can serve as an important part of an estate plan. For instance, a prenuptial agreement might specify that certain assets “stay with” a spouse’s children if that spouse passes away. Instead of becoming part of the marital property the surviving spouse receives, those assets go immediately to the surviving children.
If one spouse’s misbehavior destroys the marriage, what should happen? A premarital agreement can set conditions that trigger specific sets of rules. For example, an agreement might state the spouses will divide their property equally if they divorce – but if one spouse’s infidelity leads to divorce, the faithful spouse will receive a larger share of the property.
Prenuptial agreements have limits. As noted, a prenuptial agreement cannot substitute for an estate plan, although it can be part of an estate plan.
A prenuptial agreement cannot set terms for child custody or support payments. Texas law requires child custody and support terms to support the “best interest of the child.” A best interest determination is made at the time of the divorce. It considers factors like the child’s age and educational, medical, and social needs. Because a premarital agreement cannot predict these needs, it cannot override a court’s determination.
Finally, a prenuptial agreement cannot contain terms contrary to law or public policy. A premarital agreement that allows a spouse to be married to two people at the same time would be void, for instance, because it violates Texas’s laws prohibiting bigamy.
When to Consider a Prenuptial Agreement
All couples benefit from honest, good-faith conversations with one another. Discussing your finances, your coming partnership and your plans in the event of death or separation can strengthen your bonds. These discussions can also provide clarity and transparency as your marriage begins.
While no Texas couple is required to have a premarital agreement, many couples can benefit from one. A premarital agreement is particularly helpful when:
- One or both partners were previously married or have children from a prior relationship. Each person may have assets from a previous marriage or wish to leave certain things to their children. The premarital agreement can specify how these items should be handled if the spouses divorce or one dies.
- One or both partners are carrying substantial debt. Debts are a form of property, and they’re distributed during a Texas divorce like other forms of property. A prenuptial agreement can lay out how spouses will split the debt if they divorce.
- One spouse has significantly more assets than the other, or one or both spouses have unique assets. When one spouse brings most of the assets into the marriage, how should the assets be divided? A premarital agreement can help answer this question. The agreement can also indicate what should happen to unique assets like collectors’ items.
- The spouses want to keep their finances separate. Texas’s community property laws assume that a married couple’s assets are pooled collectively. If the spouses want to keep their finances separate, a prenuptial agreement can lay the groundwork.
Elements of a Valid Texas Prenuptial Agreement
Texas law allows for flexibility in the specifics of a prenuptial agreement. To be valid in Texas, however, a premarital agreement must:
- Meet the requirements of a valid contract in Texas,
- Be reasonable for both sides – not requiring either party to give up substantial rights (such as the right to keep any property at all),
- Be entered freely by both parties, with no pressure or coercion,
- Reflect that both parties had a full understanding of relevant information and that neither spouse hid material information from the other, and
- Conform to all applicable laws.
Texas courts will reject premarital agreements that do not meet these requirements. Discovering that what you thought was a valid agreement is void can be highly disruptive during divorce or while handling the estate of a deceased spouse.
The best way to ensure your prenuptial agreement is valid is for each spouse to work with their own experienced Hutto family law attorney. Each spouse can discuss their needs and concerns openly with their lawyer, confident they’ll receive advice tailored to their perspective. With this advice and support, each partner and their respective lawyers can work together to ensure everyone understands what they need to know and the resulting agreement works for everyone.
When You’re Already Married
True to its name, a “premarital” agreement is one created before a marriage occurs. A couple that is already married cannot create a premarital agreement in Texas.
This does not mean, however, that a married couple has missed their chance to articulate how they want to handle matters upon divorce. Married couples in Texas may create a “postmarital” agreement.
Prenuptial and postnuptial agreements can cover the same issues related to property division, inheritance, and what to do in the event of divorce. Working through these questions can help a married couple clarify their situation and make joint decisions about finances and future plans, just as a premarital agreement can help a soon-to-be-married couple envision their future. A postmarital agreement has many of the same benefits as a premarital agreement.
Both pre-and post-nuptial agreements must meet Texas’s legal requirements. They must contain all the elements of valid contracts, be based on open disclosures of relevant information, be entered freely by both parties, and not otherwise violate Texas law. Working with a respected Hutto postnuptial agreement lawyer can help you ensure your postmarital agreement accurately reflects your needs and concerns.
Speak to a Dedicated Hutto Family Law Attorney to Learn More
Preparing for marriage can be exciting. It can also be stressful. A premarital agreement can help reduce stress by clarifying what the new partnership should look like. During the process, you and your new partner can have honest, in-depth conversations about finances, blending your families, and other important matters. You can start your married life on the same page.
At the Law Office of Jason Wright, our experienced Hutto family law practice understands the importance of clear, open communication within families. Attorney Jason Wright takes a practical approach to each case and client, encouraging soon-to-be spouses to communicate clearly and find common ground within their premarital agreement.
To learn more, reach out to us today by calling 512-883-5196 or using our online contact form to schedule a confidential consultation.