Prenuptial agreements, aka “premarital agreements” or “prenups,” aren’t only for the rich and famous. Nor do they prove you don’t have faith in your future partner.
Rather, a prenuptial agreement is a valuable tool for providing clarity and boosting communication between two future spouses. Done correctly, a prenuptial agreement protects both spouses’ interests. The process of creating a prenup ensures that both of you understand the financial situation going into your marriage, which empowers both spouses to speak honestly about finances and plan effectively for a shared future.
To learn more about how a prenuptial agreement can benefit you and your spouse-to-be, talk to the experienced Liberty Hill, Texas, premarital agreement attorneys at the Law Office of Jason Wright.
The Texas Family Code defines a premarital agreement as “an agreement between prospective spouses made in contemplation of marriage and to be effective on marriage.” In Texas, a valid prenuptial agreement must also be made in writing and signed by both prospective spouses.
You may notice that this definition in Texas law doesn’t explain much. In fact, you may even notice that the definition doesn’t cover much that isn’t already expressed in the words “premarital agreement.”
Why is the definition so vague? Recognizing that every marriage is different, Texas law seeks to create the option of making a premarital agreement without forcing every couple into a contract that may or may not fit them.
While prenups in Texas must meet certain requirements, spouses are free to include a wide range of topics in their agreement. Common topics covered in premarital agreements include:
Only some possible topics can be included in a prenuptial agreement. For instance, Texas law forbids prenups that violate state or federal law. Prenuptial agreements also cannot reduce or eliminate a child’s right to receive support from both parents.
A premarital agreement determines in advance how the marrying couple wants to handle financial issues if the marriage ends – whether through separation, divorce, or the death of one of the spouses.
Separation, divorce, and death aren’t very romantic topics. Yet they are important topics to discuss before your marriage. Approximately 40 percent of Texas couples eventually divorce, and all human beings eventually die. A premarital agreement can make these major life transitions easier to navigate.
While any Texas couple can decide to create a premarital agreement, prenups are more commonly used when:
When any of these apply, a couple can use a premarital agreement to determine which spouse will handle which property and assets – and which spouse will receive or retain ownership of which items if the marriage ends. The spouses can also work out whether and how one spouse will provide spousal support to the other in the event of separation or divorce.
Failing to create a prenup doesn’t mean no rules apply if you separate or divorce. Rather, it means that the default terms of Texas law will apply to your separation or divorce.
Texas’s default rules for separation and divorce generally split property一both assets and debts一between the spouses. They also generally state that children should have quality time with each parent unless specific circumstances make that risky or impossible.
While a prenuptial agreement can’t change the terms of child support, it can shape property decisions so they more accurately reflect the specific wishes of the couple at the time they marry.
Similarly, if one spouse dies without a premarital agreement or estate plan, the default terms of Texas law will apply to the estate. (This is called dying “intestate,” or without an estate plan.) Texas law includes specific default rules for how spouses and children inherit when a person dies intestate. While a prenuptial agreement cannot fully replace an estate plan, it can provide essential guidance for interpreting an estate plan so that each spouse’s final wishes are carried out.
Prenuptial agreements are flexible – but they are not a free-for-all. To be valid, a Texas prenuptial agreement must be:
The best way to ensure your prenuptial agreement meets these requirements is to work with an attorney who represents you and your interests throughout the process.
Bringing up the idea of a prenuptial agreement can feel intimidating. You may fear your partner will assume you don’t trust them or you’re having second thoughts about the marriage.
If this is the case for you, consider addressing your partner’s specific concerns about a prenuptial agreement. For instance, you may wish to bring up points like:
Even if you and your spouse decide not to create a prenup, having an honest conversation about money, future uncertainties, and the needs of your newly combined family can strengthen your bond as you enter into married life together.
A prenuptial agreement lays the foundation for a lasting relationship. It helps both spouses know what their financial situation looks like entering the marriage, and it helps them understand where each will stand should they decide to end the marriage someday. And the terms of your prenuptial agreement can be kept confidential unless you decide to reveal them.
To learn more about the value of a prenuptial agreement, reach out to the Law Office of Jason Wright today. Our experienced Liberty Hill prenuptial agreement attorneys are here to help. Contact us for a confidential case evaluation.
