Prenuptial Agreements

Prenuptial agreements, also known as premarital agreements, can help couples start their marriage on a solid financial footing. They provide a safe space for couples to have important conversations about their expectations and goals for their marriage.

Prenuptial agreements are not just for high-net-worth couples. They are for anyone who wants to protect their assets and ensure that their wishes are respected in the event of a divorce.

Some of the most common issues addressed in prenuptial agreements include:

Asset ownership and division: Prenuptial agreements can specify how assets owned by each spouse before the marriage will be divided in the event of a divorce. This can help to avoid disputes and uncertainty down the road.
Separate property: Prenuptial agreements can also protect each spouse’s separate property, such as property acquired through inheritance or before the marriage.
Business interests: Prenuptial agreements can also be used to protect each spouse’s business interests in the event of a divorce.
Spousal support: Prenuptial agreements can also be used to waive or limit spousal support in the event of a divorce.

Prenuptial agreements should be drafted by an experienced attorney to ensure that they are fair and enforceable.

Here are some tips for couples considering a prenuptial agreement:

Be honest and open with each other about your financial situation and your expectations for the marriage.
Start the conversation early, so that you have plenty of time to negotiate the terms of the agreement.
Seek legal advice from an experienced attorney to ensure that the agreement is fair and enforceable.

Prenuptial agreements can be a valuable tool for couples who want to start their marriage on a solid financial footing. By having these important conversations early on, couples can avoid disputes and uncertainty down the road.

If you need help formulating a prenuptial agreement, make sure you are getting the legal help you need. The Law Offices of Richard C. McConathy has handled scores of prenuptial agreements and can make sure that you are able to get all of the protection you will need.

Content of Prenuptial Agreements

Prenuptial agreements must be in writing and signed by both parties. While there is no legal requirement for consideration (meaning that neither party has to exchange anything of value), it is often wise to provide some benefits to the non-monied spouse to avoid a later finding of unconscionability, especially if the non-monied spouse will be in a poor financial position under the agreement. If the benefits are good enough, the non-monied spouse may be less likely to challenge the enforceability of the agreement.

In other words, it is not legally necessary to give the non-monied spouse anything in a prenuptial agreement, but it is a good idea to do so to avoid the agreement being challenged in court. If the non-monied spouse feels that they are getting a fair deal under the agreement, they are less likely to challenge it.

Some examples of benefits that can be given to the non-monied spouse in a prenuptial agreement include:

A lump sum payment
A percentage of the other spouse’s assets in the event of a divorce
Continued use of the marital home until the non-monied spouse remarries or dies
Spousal support payments

It is important to note that every prenuptial agreement is different, and the specific benefits that are appropriate will vary depending on the couple’s individual circumstances. It is important to consult with an experienced attorney to discuss your specific needs and to ensure that your prenuptial agreement is fair and enforceable.

Texas Family Code § 4.003 provides a comprehensive list of topics that can be covered in a premarital agreement. These include a premarital agreement being able to contract with respect to:

the rights and obligations of each of the parties in any of the property of either or both of them whenever and wherever acquired or located;
the right to buy, sell, use, transfer, exchange, abandon, lease, consume, expend, assign, create a security interest in, mortgage, encumber, dispose of, or otherwise manage and control property;
the disposition of property on separation, marital dissolution, death, or the occurrence or nonoccurrence of any other event;
the modification or elimination of spousal support;
the making of a will, trust, or other arrangement to carry out the provisions of the agreement;
the ownership rights in and disposition of the death benefit from a life insurance policy;
the choice of law governing the construction of the agreement; and
any other matter, including their personal rights and obligations, not in violation of public policy or a statute imposing a criminal penalty.

Texas Family Code § 4.003 further provides that the right of a child to support cannot be adversely affected by a premarital agreement. Couples can use a premarital agreement to address a wide range of issues, including:

Asset ownership and division
Separate property
Business interests
Spousal support
Debts and liabilities
Children and their care, custody, and support
Life insurance
Gifts
Inheritance
Taxes
Any other matter that is not illegal or against public policy

It is important to note that premarital agreements must be in writing and signed by both parties. They should also be drafted by an experienced attorney to ensure that they are fair and enforceable.

When Prenuptial Agreements are Necessary

Prenuptial agreements can be beneficial for couples of all socioeconomic backgrounds, but there are certain situations where they may be especially important:

When one or both parties have significant debt
When one or both parties have significant assets
When one or both parties have been married before
When one or both parties have children
When one or both parties want to protect their estate
When one or both parties are starting a new business venture

A prenuptial agreement can give couples peace of mind knowing that, in the event of a divorce, their assets and liabilities will be divided in a way that they have agreed upon. This can also reduce the cost of litigation in the event of a divorce.

Benefits of a prenuptial agreement include:

Override state laws: A prenuptial agreement can override state laws on how marital property is divided in a divorce. This can be especially important if one or both spouses have significant assets or debt.
Protect the financial stability of children: A prenuptial agreement can protect children from a prior relationship by ensuring that they receive money or assets in the event of a divorce.
Allow for the outlining of spousal support: A prenuptial agreement can be used to outline spousal support payments, both during and after a divorce.
Reduce conflict: A prenuptial agreement can reduce conflict between spouses in the event of a divorce by providing a clear roadmap for how assets and liabilities will be divided.

It is important to note that a prenuptial agreement should be fair to both parties and drafted by an experienced attorney.

Marital Property Agreements

There are two types of marital property agreements: premarital agreements (prenups) and postnuptial agreements (postnups). A premarital agreement is an agreement that two people enter into before they get married, and a postnuptial agreement is an agreement that two people enter into after they are married.

Texas law allows spouses to change the character of a community and separate property by agreement with the use of a marital property agreement. This means that spouses can use a marital property agreement to:

Convert community property into separate property by partitioning and exchanging community property between spouses. For example, if a couple has $100,000 in a joint bank account, they could use a marital property agreement to divide the account so that each spouse owns $50,000 as their separate property.
Convert income that is derived from community property to separate property. For example, if one spouse owns a rental property before marriage, and the income from the rental property is used to pay for community expenses during the marriage, the income from the rental property would normally be considered community property. However, the spouses could use a marital property agreement to agree that all of the income from the rental property is the separate property of the spouse who owned the property before marriage.

Marital property agreements can be beneficial for couples for a number of reasons. For example, a marital property agreement can be used to protect separate property, such as an inheritance or a business, from being divided in the event of a divorce. A marital property agreement can also be used to outline spousal support payments or to make other arrangements regarding the division of assets and debts in the event of a divorce.

If you are considering entering into a marital property agreement, it is important to consult with an experienced attorney. An attorney can help you to understand your rights and options and to draft an agreement that is fair and enforceable.

Here are some additional benefits of having a marital property agreement:

Clarity: A marital property agreement can provide clarity and certainty about property rights during the marriage and in the event of a divorce.
Peace of mind: A marital property agreement can give couples peace of mind knowing that their property rights are protected, even if their marriage does not work out.
Reduced conflict: A marital property agreement can reduce conflict between spouses in the event of a divorce by providing a clear roadmap for how assets and liabilities will be divided.

If you are considering entering into a marital property agreement, it is important to consult with an experienced attorney to discuss your specific needs and goals.

Enforceability of Prenuptial Agreements

Texas law generally enforces premarital agreements. However, a premarital agreement is not enforceable under Texas Family Code § 4.006 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 their 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 will not be enforced if it was signed under duress, if it is unfair, or if the other party did not have enough information about the other party’s financial situation when they signed the agreement.

If you are considering entering into a premarital agreement, it is important to consult with an experienced attorney to ensure that the agreement is fair and enforceable.

Process of Prenuptial Agreements

Steps to creating a prenuptial agreement will include:

Negotiating the terms. The two parties should meet with their attorneys to discuss and negotiate the terms of the prenuptial agreement. This includes negotiating how assets and debts will be acquired and divided, both now and in the future.
Obtaining independent counsel. While it is legally possible for only one party to have an attorney, it is recommended that both parties retain their own separate attorneys to ensure that the prenuptial agreement is fair and enforceable.
Making financial disclosures. Both parties should disclose all of their assets and debts to each other, regardless of whether they are represented by counsel. It is also a good idea to include a waiver of financial disclosures in the prenuptial agreement and in a separate document. This will protect each party from potential challenges to the prenup in the event of a divorce.
Executing the prenuptial agreement. The prenuptial agreement must be in writing and signed by both parties in front of a notary public. It is advisable to sign the prenuptial agreement as far in advance of the wedding as possible to avoid any challenges to its voluntariness in the event of a divorce.

Here are some additional tips for creating a prenuptial agreement:

Be honest and transparent with each other about your financial situation and your expectations for the marriage.
Start the conversation early, so that you have plenty of time to negotiate the terms of the agreement.
Be willing to compromise.
Have the agreement reviewed by an experienced attorney before signing it.

Prenuptial agreements can be a valuable tool for couples who want to start their marriage on a solid financial footing. By following these steps, you can create a prenuptial agreement that is fair and enforceable.

Dealing with Intertwining Assets

Even if you have a well-drafted prenuptial agreement, it can be damaged or destroyed if you intermingle your separate financial affairs with your spouse in a way that is not intended by the agreement. For example, if you combine your bank accounts or credit cards, or if you use your separate property to pay for community expenses, it can be difficult to untangle your finances in the event of a divorce.

This is why it is important to be mindful of how you manage your finances after marriage, even if you have a prenuptial agreement. Here are some tips:

Keep your separate bank accounts and credit cards.
Only use your separate property to pay for separate expenses.
If you do need to use your separate property to pay for community expenses, keep detailed records of the transactions.
Review your prenuptial agreement regularly to make sure that it still meets your needs.

If you are considering entering into a prenuptial agreement, it is important to hire an experienced attorney who can help you draft an agreement that is fair and enforceable. An attorney can also advise you on how to protect your assets from unforeseen asset vulnerabilities before getting married.

Here are some of the benefits of hiring a premarital agreement lawyer:

An attorney can help you understand your legal rights and options.
An attorney can help you draft an agreement that is fair and enforceable.
An attorney can advise you on how to protect your assets from unforeseen asset vulnerabilities.
An attorney can help you negotiate the terms of the agreement with your future spouse.

Prenuptial agreements can be a valuable tool for couples who want to start their marriage on a solid financial footing. By hiring an experienced attorney, you can ensure that your prenuptial agreement is fair and enforceable and that it protects your assets in the event of a divorce.

Prenuptial Agreements Attorney in Tarrant County, TX

The Law Offices of Richard C. McConathy have helped countless couples determine the prenuptial agreements that help protect assets heading into a marriage in Fort Worth, Arlington, Grapevine, Keller, Southlake, or other cities in Tarrant County, Texas. Our firm understands the common challenges that people are dealing with in these situations and we will be able to walk you through every issue so you are able to create a workable agreement that can give you peace of mind.

You can call (817) 422-5350 or contact us online to receive a free consultation that will allow us to fully discuss your case with you. You should also know that our firm has experience handling many kinds of family law issues, including protective order hearings.