What Is a Prenup and Why Would I Need One?

 Posted on May 10, 2023 in Family Law

A prenuptial agreement – also referred to as a prenup – is a legal contract that couples enter into before they get married. The agreement sets out the terms and conditions for how assets, property, and financial affairs will be handled if the marriage ends in divorce. Although some people may view prenups as unromantic, there are many reasons why entering into one is a wise decision.

Protects Assets

A prenuptial agreement can protect your individual assets. If you have accumulated wealth, property, or investments before the marriage, a prenup can ensure that you retain ownership of these assets in the event of a divorce. Without a prenup, your assets may become part of the “marital estate” and should the marriage end in divorce, your spouse could be entitled to half of that estate per the community property laws of the state of Texas – regardless of who acquired them.

Clarify Marital Financial Expectations

Discussing the terms of a prenup can also help clarify financial expectations and avoid disputes once the couple is married. Money is often a significant source of tension in marriages, and having a prenup can help you and your partner establish clear guidelines for how finances will be handled during the marriage. This can prevent misunderstandings and arguments about money down the line, which can ultimately help strengthen your relationship.

Save Resources

In the event a couple does get a divorce, a prenup can save them time and money. Divorce proceedings can be lengthy and expensive, especially if there are disagreements about property, assets, and finances. A prenup can provide a clear roadmap for how these issues will be resolved, potentially saving thousands of dollars in legal fees and court costs.

Business Interests

If you own a business, a prenup can protect those interests. A prenup can ensure that your spouse does not have a claim to it in the event of a divorce. This can be particularly important if your business is your primary source of income or if you plan to pass it down to your children.

Premarital Debt

A prenuptial agreement can protect you from your partner's debt. If your partner has significant debt, a prenup can ensure that you are not responsible for it if the marriage ends. This can be crucial if you have good credit or if you plan to make major purchases together.

Contact a Collin County Family Law Attorney

In addition to all of the above, a prenuptial agreement can also provide a couple peace of mind. Marriage is a significant commitment, and it is only natural to have concerns about what might happen if the relationship ends. A prenup can provide reassurance that your assets and financial interests are protected, which can allow you to focus on building a happy and healthy marriage. If you would like to learn more, a Frisco, TX prenup lawyer can explain the benefits of having a prenuptial agreement in place. Call Pfister Family Law at 972-954-6455 to schedule a confidential consultation.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.4.htm