The Need for a Prenuptial Agreement in Texas

Drafting Premarital Agreements in Texas

In its simplest terms, a premarital agreement is a contract two people sign before getting married, which starts to apply when they get married. It often covers how property will be handled and is allowed by the state constitution, Texas laws, and previous court decisions. Also, the general opinion and law support these agreements and prefer to enforce them.  Texas has a legislative framework enables couples to outline their financial relationship before marriage, covering areas like property management, asset allocation, and spousal support. To be enforceable, agreements must be in writing, signed by both parties, and entered into voluntarily, aiming to promote fairness and transparency in financial arrangements between spouses.

What Is Allowed in Premarital/Prenuptial Agreement:

• Property Rights and Obligations: Couples can decide on the ownership, distribution, and management of property, both acquired before and during the marriage.

• Asset and Liability Allocation: The agreement can specify how future assets and liabilities will be handled, divided, or managed.

• Spousal Support: Terms regarding alimony or maintenance in the event of separation or divorce can be established, including the amount and duration.

• Death Benefits: The right to death benefits from life insurance policies can be outlined.

• Estate Planning: Provisions for wills, trusts, and other estate planning tools can be included to ensure the agreement's terms are respected after one spouse's death.

• Management of Household Expenses: While not common, agreements can specify responsibilities for household bills and expenses.

What Cannot Be Included in Premarital/Prenuptial Agreement:

• Child Custody and Support: The UPAA does not allow prenuptial agreements to dictate terms of child custody or support, as these matters are subject to court discretion to serve the best interests of the child. Child support may not be “adversely affected” by a premarital agreement. 

• Non-Financial Matters: Provisions dictating non-financial aspects of the marriage, such as chores, relationships with in-laws, or decisions about children (aside from financial aspects), are generally not enforceable under the UPAA.

• Illegal or Unethical Provisions: Any terms that violate public policy or are illegal cannot be included. This includes clauses that incentivize divorce or involve any form of criminal activity.

• Waiver of Rights to Certain Benefits: Some states may restrict the ability to waive rights to certain benefits, such as survivor benefits under a pension plan, within a prenuptial agreement.

A premarital agreement needs to be written down and signed by both people getting married. It doesn't need any exchange of money or assets, but sometimes, giving benefits to the partner with less money might help prevent the agreement from being considered unfair later on, especially if that partner would end up in a bad financial situation because of the agreement. If these benefits are substantial, it might reduce the likelihood of the agreement being challenged in court.

A Premarital Agreements Simplifies A Divorce In Texas

As the dream of 'happily ever after' unravels, the strength and fairness of prenuptial agreements come under the spotlight. Initially crafted as a mutual safety net, these prenuptial/premarital agreements sometimes face scrutiny for their fairness and enforceability. This transition from mutual agreement to legal challenge underscores the dynamic nature of marital contracts and the importance of equitable terms from the start. Our family lawyers at Wilson Whitaker Rynell understand the importance of protecting your financial future before entering into marriage with an effective, enforceable and fair premarital agreement. Our team of experienced attorneys specializes in drafting comprehensive prenuptial agreements tailored to your unique needs. We believe in providing peace of mind through clear, legally binding contracts that secure your assets and future earnings.  A well drafted prenuptial agreement should simply divorce and not met it more complex.   When drafting a premarital agreement, you must consider if the following has properly occurred:

Premarital/Prenuptial Agreement Disclosure Principles:

• Fairness at Signing: Ensuring both parties had a clear understanding and agreement to the terms without coercion.

• Full Disclosure: Verifying that all assets and liabilities were fully disclosed, preventing surprises that could lead to disputes.

• Legal Representation: Confirming each party had access to independent legal advice, safeguarding against imbalanced agreements.

• Voluntariness and Absence of Duress: Establishing that the agreement was entered into freely by both parties.
  

Challenging A Prenuptial/Premarital Agreement

In Texas, challenging a prenuptial agreement requires a strategic approach and an understanding of complex legal standards. Our skilled divorce and premarital agreement attorneys specialize in divorce litigation and premarital agreement representation, offering the expertise needed to navigate these challenging waters.

Sample Fact Pattern of A Premarital Agreement Dispute in Court:

"John and Jane Doe are facing the end of their “Happily Ever After” and are navigating the complexities of their divorce proceedings. When they married five years ago, they both agreed to a prenuptial agreement, believing it would provide a clear financial understanding and protect their individual assets should their marriage end. John, a successful entrepreneur, and Jane, a freelance graphic designer, sought to define the division of assets, spousal support, and the handling of potential debts, aiming to avoid future disputes.

As the divorce process begins, Jane challenges the prenuptial agreement, arguing that it no longer reflects a fair arrangement given the circumstances they find themselves in now. Here's a breakdown of their situation:

• Fairness at Signing: Jane contends that she didn't fully understand the extent of John's business assets at the time of signing. She argues that the agreement was skewed in John's favor, given his greater financial knowledge and resources.
• Full Disclosure: Jane claims that John did not disclose specific investments that have substantially increased in value during their marriage, investments she now argues should be considered shared marital assets and divided accordingly.
• Legal Representation: While both John and Jane had legal counsel during the drafting and signing of the prenuptial agreement, Jane argues that her representation did not adequately explain the long-term implications of the agreement, particularly concerning John's future business earnings.
• Voluntariness and Absence of Duress: Jane maintains that she felt pressured to sign the prenup quickly, without fully grasping its consequences, due to the wedding planning and John's insistence on finalizing the document.

In challenging the prenuptial agreement, Jane aims to modify its provisions to achieve a fairer distribution of assets and introduce spousal support terms that were previously excluded. This situation emphasizes the vital importance of ensuring full understanding, equitable negotiations, and complete transparency in creating prenuptial agreements, as well as highlighting the chance that such agreements can be contested for being unjust at the divorce stage.  If John is to successfully enforcement the prenuptial agreement, he will not need clearly show that Jane was fully aware of all the assets, had adequate legal representation, and that the premarital agreement if in fact fairly signed without duress."

If you believe your prenuptial agreement needs enforcement, or is unjust or invalid, Wilson Whitaker Rynell is here to help! Contact us for a comprehensive evaluation of your case and explore your options for challenging a prenuptial agreement in Texas. Secure your financial future with our dedicated legal support.

Can I Change or Terminate a Prenuptial Agreement After Marriage?

Absolutely. Couples can update or cancel their original prenuptial agreement by mutually agreeing to a new written contract, known as a postnuptial agreement. This new agreement can revise or completely override the initial prenup. Importantly, both partners must agree to the changes, and the agreement must be documented in writing. No additional considerations are needed to make these changes. Postnuptial agreements offer a flexible way for couples to adjust their financial arrangements after marriage.