Proving a Marital Property Agreement Should be Enforced in Texas
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Establishing and enforcing marital property agreements
Proving a Marital Property Agreement Should be Enforced
Generally, individuals enter into matrimony with the expectation of spending the rest of their lives together. Nevertheless, a significant percentage of marriages terminate in divorce. In anticipation of this possibility, some individuals proactively establish prenuptial or postnuptial agreements to safeguard their assets and rights, or to establish guidelines in the event of a divorce. Despite signing such agreements, it is not uncommon for one party in a divorce proceeding to dispute the agreement's validity and request the court to disregard it. Thus, demonstrating the enforceability of a matrimonial property agreement can be a difficult task.
Enforceability of Marital Property Agreements Under Texas Law
In Texas, the Family Code provides the criteria for annulling a prenuptial agreement. Specifically, if a party opposes a prenuptial agreement, it will not be upheld if they did not voluntarily sign it, or if it was deemed unconscionable at the time of execution. Additionally, the opposing party must not have received fair and reasonable disclosure of their future spouse's financial liabilities or property, waived such disclosure in writing voluntarily, or lacked sufficient knowledge of their spouse's property or obligations. The Texas courts determine whether a prenuptial agreement is unconscionable as a matter of law.
Likewise, a written and signed post-marital agreement is necessary for enforceability when it pertains to the couple's respective property rights or partitioning property. The same grounds that apply to prenuptial agreements apply to post-marital agreements to determine their enforceability.
The Family Code specifies that there are no additional grounds for invalidating prenuptial or post-marital agreements. However, it is crucial to note that the Code only governs marital-property agreements established after September 1, 1993. The courts review the enforceability of agreements entered before that date based on the law applicable when the parties executed the agreement.
Proving the Enforceability of Marital Property Agreements
In Texas, public policy favors enforcing marital-property agreements, and the courts presume their enforceability unless proven otherwise. Factors such as one party lacking legal representation, the agreement being signed close to the wedding date, or the agreement heavily favoring one party alone will not, by themselves, make the agreement unenforceable. However, these factors may be considered by the court when determining the enforceability of the agreement.
To demonstrate the enforceability of a marital-property agreement, a party can rely on both direct and circumstantial evidence. Direct evidence may include documentation of financial information shared with the contesting party before the agreement's signing and discussions between the parties regarding the agreement's terms. Importantly, under Texas law, individuals are presumed to understand the terms of any agreement they sign. Therefore, if a party can demonstrate that they did not deceive their spouse into signing the agreement, they may be able to refute any claim that the agreement was not entered into voluntarily.
Speak with an Experienced Divorce Attorney
In divorce cases, parties may try to convince the court to overlook prenuptial and postnuptial agreements to avoid unfavorable rulings, but courts generally uphold validly executed agreements. The experienced attorneys at Wilson Whitaker Rynell help individuals protect their rights in divorce proceedings, and they can collect the necessary evidence to assist you in seeking the most favorable legal outcome based on the circumstances of your situation. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.
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