If you’re thinking about getting married, you might want to consider having a prenuptial agreement drafted. A prenuptial agreement is a binding document that can help ensure that both parties are protected financially during divorce proceedings, should the couple decide to split.
- Why Prenuptial Agreements are Useful in Texas
While prenuptial agreements are sometimes characterized as “unromantic,” the reality is that about 50 percent of marriages end in divorce or separation and it can be advantageous to proactively address the possibility of you and your partner splitting. Premarital agreements protect the financial and property rights of two parties getting married, which can be especially useful if either individual has significant assets prior to the marriage.
In Texas, assets acquired during the marriage are considered “community property,” which means that, in the absence of a premarital agreement, these assets are often split 50-50 between a divorcing couple.
- Types of Prenuptial Agreements
There are two main types of prenups: those that cover only property (called “property” prenups) and those that cover both property and personal assets (called “all assets” prenups). Property prenups usually cover everything except real estate, while all assets prenups cover everything. A prenup can also help determine what happens to shared property in the event of the death of one of the spouses.
- Do You Need a Lawyer to Create a Prenup?
In Texas, a prenuptial agreement has to be written and signed by both parties in order to be legally binding. While consulting with a lawyer is not required, it is recommended that both parties have their separate attorneys look over the documentation before moving forward. An experienced family law attorney can help construct a prenup that is thorough and precise, ensuring that it adequately protects their client in the event of a divorce.
- Is a Prenup Right for You?
Prenuptial agreements can be a controversial topic. Creating and signing one requires honesty, time, energy and often money. It is important to consider the costs and benefits of a prenup before entering into one. While a prenup can help protect your assets and provide a legal framework for settling disputes during a divorce, it can also lead to uncomfortable conversations and many couples fear it will breed distrust. The most important part of creating a premarital agreement is to work collaboratively with your future spouse and be open and honest about your thoughts, fears, priorities and values going into the marriage.
This blog does not constitute legal advice. For more information about creating a prenuptial agreement in Texas, contact Sandoval Family Law today.