A prenuptial agreement is a legal contract that helps define the management of a couple’s assets and debts in the event of a divorce. It allows couples to make important financial decisions before entering marriage.
Protecting property and assets
Couples consider a prenuptial agreement to protect their property and assets, like homes, savings, and investments. Without a prenup, assets acquired during marriage are usually divided according to state law, which may not align with your wishes.
Under Texas law, property acquired during marriage is considered community property and divided between spouses in a divorce. A prenuptial agreement lets you decide how your property will be split, protecting what you bring into the marriage or acquired during it.
Addressing debt and liabilities
A prenuptial agreement can also provide protection from a spouse’s debts. If one partner enters the marriage with significant debt, a prenup can ensure that the other spouse is not responsible for those liabilities in the event of divorce. Debt can be a heavy burden in marriage, and setting clear guidelines in a prenup prevents any confusion over financial responsibilities, allowing both partners to know their obligations upfront.
Business ownership and inheritance
If you own a business or expect to inherit assets, a prenuptial agreement can safeguard these interests. In the event of a divorce, you may want to ensure that your business remains under your control, or that any inheritance stays within your family.
A prenuptial agreement is not reserved for wealthy individuals; it’s an important tool for anyone who wants to ensure financial security and clarity in their marriage.