More couples are looking to safeguard their marriages financially. Although it doesn’t sound very romantic, it might be one of the most loving things soon-to-be spouses and married couples in Texas can do for each other. Prenuptial and postnuptial agreements (prenups and postnups) are both marriage contracts, but they do have differences. Here is a look at both of these contracts and which might be more fitting for different couples.
A prenup
A prenup is a contract signed prior to marriage outlining how assets would be divided if the marriage ends. They are now pretty standard in all states, but not all couples use them. They can prevent a drawn out, litigated divorce, saving time and money. All important financial aspects should already be highlighted in the document, which should significantly minimize any questions about assets.
A postnup
As the name implies, this document is written up and signed after a marriage has taken place. The main difference between the two documents is that a postnup will be carefully reviewed by a family court judge before it’s considered valid and enforceable. It can also be more complex and complicated since many assets become marital property after tying the knot.
The bottom line
Prenups are signed before a marriage and postnups after. Both detail how assets (and perhaps debts) are to be divided in the event a marriage ends in divorce. Neither of these documents can legally speak to plans for existing or future children. A prenuptial agreement is especially important if one person has substantial assets, real property, there are children from a previous relationship, or he or she is expecting to receive a large inheritance. Receiving support from an experienced Texas lawyer to draw up either of these agreements could prove invaluable due to all of the potential financial and tax implications.