Marital Agreements

Marital agreements, also known as prenups or postnups, are a smart financial decision for couples to consider, especially in light of the high divorce rate. Prenups are not meant to be romantic gestures, but rather a practical way to protect your finances and assets in case of divorce.

Prenups are not a sign that you do not believe in your marriage. They are simply a way to plan for the unexpected. If you are open and honest with your partner about your finances, a prenup should not be a difficult topic to discuss.

At The Law Offices of Richard C. McConathy, we can help you create a prenuptial or postnuptial agreement that is tailored to your specific needs. We can help you protect your property and money, and we can help you avoid a lengthy and contentious divorce process.

Here are some of the benefits of having a prenup or postnup:

  • Protect your assets. If you have significant assets, such as a business, real estate, or investments, a prenup can help ensure that they remain yours during a divorce.
  • Clarify financial expectations. A prenup can also be useful for discussing and clarifying financial expectations before getting married. This can help to avoid conflict and misunderstandings down the road.
  • Simplify divorce proceedings. If you do get divorced, a prenup can help simplify the process by providing a clear roadmap for how your assets and debts will be divided.
  • Give you peace of mind. Knowing that you have a prenup in place can give you peace of mind and allow you to focus on your marriage.

If you are considering getting married, I encourage you to talk to your partner about a prenup. It is a smart financial decision that can protect both of you in case of divorce.

How Prenups and Postnups Work

A premarital or postmarital agreement, also known as a prenup or postnup, is a contract between two spouses that outlines how their assets and debts will be divided in the event of a divorce. Prenups must be in writing and signed by both spouses before the marriage, while postnups can be signed at any time during the marriage.

In Texas, both spouses must disclose all of their assets and liabilities to each other before signing a prenup or postnup. This is important because the agreement may alter your default property rights under existing law, and you need to have a full understanding of your partner’s financial situation in order to evaluate the risks and benefits of the agreement.

An agreement may also be unenforceable if a spouse did not sign voluntarily or if the agreement is unconscionable. This means that the agreement is so unfair or one-sided that it is unjust to enforce it.

Premarital and postmarital agreements can cover a wide range of topics, including:

  • How community property will be divided in the event of a divorce
  • How separate property will be treated during and after the marriage
  • Alimony
  • Child support
  • Retirement benefits
  • Life insurance
  • Business interests

There are certain areas that are off-limits in premarital and postmarital agreements in Texas. For example, you cannot limit the amount of child support that one parent would need to pay to the other in case of divorce or a child custody dispute.

How Prenuptial Agreements Work

Premarital agreements (prenups) are legal contracts between two people who are about to get married. They can be used to protect each person’s separate property and assets in the event of a divorce. Prenups can also be used to clarify financial expectations and avoid conflict down the road.

To be enforceable in Texas, a prenup must be in writing and signed by both parties. It must also be fair and reasonable, and both parties must have a full understanding of each other’s financial situation before signing.

Prenups can cover a wide range of topics, including:

  • How property will be divided in the event of a divorce
  • Alimony
  • Child support
  • Retirement benefits
  • Life insurance
  • Business interests
  • Prenups cannot, however, limit a parent’s child support obligations.

If you are considering a prenup, it is important to consult with an experienced family law attorney to discuss your specific needs and to ensure that the agreement is enforceable. Texas law favors the enforcement of premarital agreements. However, a premarital agreement is not enforceable if the party against whom enforcement is sought proves that:

  • They did not sign the agreement voluntarily.
  • The agreement was unconscionable when they signed it, and they:
  • Were not provided with a fair and reasonable disclosure of the other party’s property and financial obligations.
  • Did not voluntarily and expressly waive, in writing, any right to disclosure of the other party’s property and financial obligations beyond the disclosure provided.
  • Did not have, or reasonably could not have had, adequate knowledge of the other party’s property and financial obligations.

In other words, a premarital agreement can be challenged if:

  • The person who is being asked to enforce the agreement did not sign it freely, without pressure or coercion.
  • The agreement was unfair or one-sided at the time it was signed, and the person who was being asked to enforce the agreement did not have a full understanding of the other person’s financial situation.

If you are considering signing a premarital agreement, it is important to consult with an experienced family law attorney to ensure that your rights are protected. It is important to be mindful of how you manage your finances after getting married, even if you have a premarital agreement. 

If you intermix your separate financial affairs with your spouse’s, it can make it difficult to enforce the premarital agreement in the event of a divorce. Most couples are happy and optimistic when they create a premarital agreement. 

They do not typically expect to get divorced. However, if the premarital agreement was not drafted by an experienced family law attorney, it may not be enforceable.

We highly recommend hiring a premarital agreement lawyer to help you protect your assets from unforeseen asset vulnerabilities before getting married. A skilled attorney can help you create a premarital agreement that is fair and enforceable, and that will protect your interests in the event of a divorce.

Here are some tips for protecting your assets after getting married:

  • Keep your separate financial accounts separate. This includes bank accounts, credit cards, and investment accounts.
  • Do not co-sign on loans or other financial obligations with your spouse unless you are prepared to be responsible for the entire debt if your spouse defaults.
  • Keep track of your separate property. This includes keeping records of the purchase and value of any assets that you owned before getting married.
  • Review your premarital agreement with an attorney regularly to make sure that it is still up-to-date and enforceable.

Prenuptial agreements can be beneficial for all couples, regardless of their socioeconomic status. However, there are certain situations where a prenuptial agreement may be especially important, such as when:

  • One or both partners have significant debt.
  • One or both partners have significant assets.
  • One or both partners have been married before.
  • One or both partners have children from a previous marriage.
  • One or both partners wants to protect their separate estate.
  • One or both partners are starting a new business.

Here are some specific examples of how prenups can be beneficial in these situations:

  • If one partner has significant debt, a prenup can help protect the other partner from being held financially responsible for that debt in the event of a divorce.
  • If one or both partners have significant assets, a prenup can help to ensure that those assets are divided fairly in the event of a divorce.
  • If one or both partners have been married before, a prenup can help to protect the assets and interests of their children from a previous marriage.
  • If one or both partners want to protect their separate estate, a prenup can help to ensure that their assets are not divided with their spouse in the event of a divorce.
  • If one or both partners are starting a new business, a prenup can help to protect the other partner’s financial interests in case the business fails.

If you are considering getting married, it is important to talk to your partner about a prenuptial agreement. A prenup can be a valuable tool for protecting both of your financial interests and ensuring that your marriage starts off on the right foot.

Prenups can also be beneficial for couples who are planning to start a family together. A prenup can help to ensure that both partners are financially prepared for the challenges of parenthood and that their children will be provided for in the event of a divorce.

If you are considering a prenuptial agreement, it is important to consult with an experienced family law attorney to discuss your specific needs and to ensure that the agreement is enforceable.

The process of creating a prenuptial agreement involves the following steps:

  1. Negotiate the terms. The two parties should meet with their respective attorneys (if applicable) to discuss and negotiate the terms of the prenup. This includes discussing the acquisition of assets and debts, both now and in the future.
  2. Obtain independent counsel. While it is legally possible for only one party to obtain a lawyer for the drafting of the prenuptial agreement, it is highly recommended that both spouses retain their own separate attorneys to ensure that the agreement is fair and enforceable for both sides.
  3. Make financial disclosures. Both spouses should disclose all of their assets and debts to each other, regardless of whether they are represented by counsel. This information should be disclosed in writing and signed by both parties. It is also a good idea to include a waiver of financial disclosures in the prenuptial agreement, as this can help to protect each party from potential challenges to the agreement in the event of a divorce.
  4. Execute the prenuptial agreement. The prenuptial agreement should be in writing and signed by both spouses before a notary public. It is advisable to execute the prenup as far in advance of the wedding as possible to avoid any potential challenges to the voluntariness of the agreement in the event of a divorce.

Here are some additional tips for creating a prenuptial agreement:

  • Be honest and open with each other about your financial situation.
  • Be willing to compromise and negotiate.
  • Make sure that you understand all of the terms of the agreement before you sign it.
  • Have your attorney review the agreement before you sign it.

If you are considering getting married, I encourage you to talk to your partner about a prenuptial agreement. A prenup can be a valuable tool for protecting both of your financial interests and ensuring that your marriage starts off on the right foot.

How Postnuptial Agreements Work

Postmarital agreements, also known as postnups, are contracts between two spouses that are signed after marriage. They can be used to achieve many of the same goals as premarital agreements, such as protecting separate property and assets in the event of a divorce, clarifying financial expectations, and simplifying divorce proceedings.

One type of postmarital agreement is a partition and exchange agreement. This type of agreement allows spouses to convert community property into separate property, or vice versa. This can be useful if one spouse wants to protect their assets from the other spouse’s creditors, or if the spouses want to have more control over how their property is divided in the event of a divorce.

To be enforceable in Texas, a partition and exchange agreement must be in writing and signed by both spouses. It does not require consideration, which means that neither spouse needs to give anything up in exchange for the agreement.

If you are considering a postmarital agreement, it is important to consult with an experienced family law attorney to discuss your specific needs and to ensure that the agreement is enforceable. Partition and exchange agreements are not enforceable if the party against whom enforcement is sought proves that:

  • They did not sign the agreement voluntarily.
  • The agreement was unfair or one-sided at the time it was signed, and they:
  • Were not provided with a fair and reasonable disclosure of the other party’s property and financial obligations.
  • Did not voluntarily and expressly waive, in writing, any right to disclosure of the other party’s property and financial obligations beyond the disclosure provided.
  • Did not have, or reasonably could not have had, adequate knowledge of the other party’s property and financial obligations.

Additionally, spouses may agree to make the income or property arising from one spouse’s separate property the separate property of that spouse.

However, the best postnuptial agreement can be damaged if the spouses do not handle their financial affairs carefully after the agreement is signed. For example, if separate property is mixed with community property to the point that it cannot be identified, the separate property may be lost to the community estate in the event of a divorce.

It is important to remember that couples are generally on good terms when they sign a postnuptial agreement. It is not until a divorce is filed that the agreement is typically challenged. If the attorney who prepared the agreement and advised the couple about their financial life after the agreement was signed was not an expert in marital agreements, it may be too late to fix any mistakes.

Here are some tips for protecting your assets after signing a postnuptial agreement:

  • Keep your separate financial accounts separate. This includes bank accounts, credit cards, and investment accounts.
  • Do not co-sign on loans or other financial obligations with your spouse unless you are prepared to be responsible for the entire debt if your spouse defaults.
  • Keep track of your separate property. This includes keeping records of the purchase and value of any assets that you owned before signing the postnup.
  • Review your postnuptial agreement with an attorney regularly to make sure that it is still up-to-date and enforceable.

If you are considering signing a postnuptial agreement, you should to talk to your spouse about it and consult with an experienced family law attorney.

Challenging Prenuptial and Postnuptial Agreements

You can challenge a prenuptial agreement in Texas in the event of a divorce, but it is difficult. Prenuptial agreements are presumed to be valid, so the challenging party must prove that the agreement was:

  • Not signed voluntarily, or
  • Unconscionable when signed, and the challenging party:
  • Was not provided with a fair and reasonable disclosure of the other party’s property or debts,
  • Did not voluntarily waive in writing any right to disclosure of the other party’s property or debts beyond the disclosures provided, and
  • Did not have or could not have had adequate knowledge of the other party’s property or debts.

Whether a prenuptial agreement was signed voluntarily depends on the specific facts of the case. There is no bright-line test, but some factors that may call into question the voluntariness of the signing include:

  • Whether either party had the advice of counsel
  • Misrepresentations made by one party to the other
  • The amount of information provided
  • Evidence of fraud or duress
  • The withholding of any information

To determine whether a prenuptial agreement is unconscionable (defined as extremely unfair), Texas courts look to such facts as:

  • The non-bargaining ability of one future spouse
  • Whether the agreement is illegal or against public policy
  • Whether the agreement is oppressive or unreasonable

In examining these facts, Texas courts consider the maturity and age of future spouses, education levels, relative business backgrounds, prior marriages, and other motivations of the parties.

Before signing a prenuptial agreement, it is important to read and re-read it carefully and consult with an experienced family law attorney. An attorney can help you understand the terms of the agreement and advise you whether it is fair and enforceable.

It is important to get legal advice from an attorney who is experienced in drafting and challenging prenuptial agreements. This is because prenuptial agreements can be complex and difficult to interpret, and even a small mistake can make the agreement unenforceable.

Marital Agreements Attorney in Tarrant County, TX

Marital agreements can represent one of the best ways for people to protect their assets in the event of a divorce, but they can also be difficult for many couples to formulate on their own. Let The Law Offices of Richard C. McConathy help you craft a winning agreement that addresses all of your concerns and gives you the peace of mind you deserve.

You can call (817) 422-5350 or contact us online to set up a free consultation so we can discuss your entire case with you. You should also be aware that our firm has extensive experience dealing with all kinds of domestic violence concerns, including protective order hearings in Fort Worth, Arlington, Grapevine, Keller, Southlake, and other cities in Tarrant County, Texas.