A Fair and Legally Enforceable Contract for Texas Couples
Premarital agreements are not the most romantic subject for Texans. Sometimes called prenups, these legal contracts provide a framework for asset division in the event of divorce or death. Of course, the latter is inevitable, making premarital agreements advantageous for many Texas couples.
What Can Be Included in a Premarital Agreement?
Texas follows the community property standard for post-divorce asset division. This means that almost all property gained by either spouse during the marriage is considered to be owned equally (50/50) by both spouses. Texas couples who want a different arrangement when it comes to property division can craft a premarital agreement that does so.
Premarital agreements can also be used for:
- Insulating a spouse from the other’s debts;
- An individual who has an existing business and wants to keep it as separate property; or
- Stipulating dispute resolution methods (such as mediation) in a divorce.
Premarital agreements may not be used to set aside a certain amount of child support or decide conservatorship (child custody).
Premarital Agreements Must be Fair
One-sided premarital agreements are usually not enforceable in Texas. Judges refer to these unfair agreements as “unconscionable.” Unconscionability is not the only reason a premarital agreement in Texas might be unenforceable, though.
For instance, spouses are entitled to a reasonable and fair disclosure of the other spouse’s property and finances before signing the agreement. Not knowing the full extent of your spouse’s wealth could put you at a disadvantage when coming to an agreement. Additionally, spouses must be free from duress or coercion when signing a legally enforceable premarital agreement in Texas.
Premarital Agreements Are Not Only for the Wealthy
There is a widely held belief that only rich couples need premarital agreements. That’s simply not true. Any spouse with assets—no matter how few—can make good use of a premarital agreement. If you should ever divorce your spouse, coming to an agreement on property division and spousal support before your relationship gets contentious can make the divorce process and post-divorce life better.
Divorce Wise™ is here to explain your options and help determine if a premarital agreement is right for you and your spouse.
If you’re in need of legal advice, contact Tycha Kimbrough at Kimbrough Legal, PLLC today.
