You may have worked hard in your younger years to build a sizeable nest egg. Moreover, you may own a house, a vacation home or other valuable assets prior to marriage, especially if you married late-in-life or it is your second or subsequent marriage. And, if you receive an inheritance prior to marriage, you certainly want to protect it. All of these are good reasons to consider executing a prenuptial agreement, referred to as a premarital agreement in Texas.
What is a premarital agreement?
A premarital agreement is a document that spouses execute prior to marriage that outlines their property rights both during marriage and in the event of a divorce, as well as other conditions of marriage. Premarital agreements must be written and signed by both parties in order to be valid. Note that unlike business contracts, a premarital agreement does not have to be supported by consideration in order to be enforceable.
What can be included in a premarital agreement?
Premarital agreements generally outline property rights. They can dictate each spouse’s rights and obligations regarding property purchased or obtained either before marriage or during the course of the marriage. This includes the right to purchase or dispose of property and who will keep what in the event of a divorce. Premarital agreements can also outline what is to be paid in spousal support, or it could eliminate spousal support in the event of a divorce.
Premarital agreements can also contain provisions regarding the execution of an estate plan to carry out the terms of the premarital agreement. This includes who has the rights to death benefits from a life insurance policy. Premarital agreements can dictate which state law will govern its enforcement. Finally, premarital agreements can contain provisions on personal matters, as long as they do not violate the law or public policy. It is important to note that child support rights cannot be negatively affected by the terms of a premarital agreement.
Learn more about in premarital agreements in Texas
Premarital agreements can be very useful, but they are still complex legal documents that must be drafted with care and a sound knowledge of Texas law. This post is for educational purposes only and does not contain legal advice. Our firm’s webpage on premarital agreements may be of interest to those who want to learn more about this topic.