If you are planning to get married, you may be interested in learning about the benefits of signing a prenuptial agreement or “prenup.” Prenuptial agreements or premarital agreements are largely misunderstood by the general public. Many people are unaware of the financial and personal benefits offered by prenuptial agreements.
Fortunately, more and more people are starting to realize that prenups offer practical solutions to a myriad of financial concerns. Prenuptial agreements are especially popular among the millennial generation. Many young people grew up with divorced parents and recognize that divorce is always a possibility – even in the most loving marriages. Read on to learn about the advantages of signing a prenuptial agreement when one or both partners have a high net worth.
Identifying Property as Marital or Non-Marital
Texas courts follow “community property” rules during a divorce case. This means that any property considered marital property is divided between the spouses. Separate property is assigned to the spouse that originally owned the property. Nearly every asset that a spouse acquires during the marriage is considered a marital property save for certain exceptions. Through a prenuptial agreement, you can designate property and debt as either marital or non-marital. This is especially beneficial for business owners who want to ensure that business interests are not lumped in with other marital property in a divorce.
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