6034 West Courtyard Drive, Suite 100, Austin, TX 78730

Facebook Twitter

Call Us Today


TX divorce lawyerIf 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.


austin texas prenup lawyer Prenuptial agreements can be a touchy subject between partners, and there are many reasons why people may be reluctant to consider them. Some may be concerned that a prenup will start the marriage off on the wrong foot, and others may feel that a prenup is unnecessary given their current financial situation. However, for those who are about to begin their second marriage, the benefits of a prenuptial agreement often start to become more clear. Here are some reasons why a prenup may be a good choice as you prepare to get remarried.

You Want to Avoid the Mistakes of Your First Marriage

Divorce is a largely unpleasant experience, but one positive that may result from divorce is a better understanding of what can go wrong in a marriage. Perhaps disagreements about finances were a major contributor to the failure of your first marriage, and you want to address these issues up front in your next marriage. Or, perhaps the division of marital assets in your divorce was difficult and embittered, and you want to have a better plan for dividing assets amicably if you need to do it again in the future. A prenup can allow you to do both of these things.

You Have More Valuable Assets

Second marriages tend to happen at a later stage in life, when you may already have substantial assets to your name. For example, you may own and operate a business, have one or more real estate properties, or have a valuable investment or retirement portfolio. According to Illinois law, assets owned before marriage are considered non-marital property and protected from division in a divorce, but it may still be a good idea to create a prenup to establish, clearly and in writing, that certain assets will belong to you alone throughout the marriage.


TX divorce lawyerIf you are a business owner, you need to understand that getting divorced could have a significant impact on your ownership of business assets, the income you earn through your business, and your ability to continue operating your company successfully. For business owners, divorce often involves complex property litigation as they determine how to divide their marital assets and debts. Those who are looking to protect a family business or professional practice in the case of divorce should consider creating either a prenuptial agreement or postnuptial agreement.

Addressing a Family Business in a Prenup or Postnup

A prenuptial agreement, or prenup, is a legal agreement signed by a couple before getting married. This agreement will detail how certain matters will be handled if their marriage ends in divorce, and it may include decisions related to marital assets such as family businesses. A postnuptial agreement, or postnup, functions the same as a prenup, but it is created and signed after a couple is already married.

A prenuptial or postnuptial agreement may address a business or professional practice in the following ways:


TX divorce lawyerWhen getting married, couples will need to be aware of a variety of issues that may affect them both immediately and in the future. While planning for the possibility of divorce will likely not be their top priority, it can be a good idea to consider this issue, especially if one or both spouses are entering the marriage with significant assets. A prenuptial agreement can provide spouses with protection, ensuring that they will be able to maintain ownership of certain assets if their marriage ends while also addressing other issues that may play a role in a potential divorce. However, couples will want to be sure their prenup will be legally valid and that its terms can be enforced if they do decide to get a divorce.

When Can a Prenup Be Invalidated

A prenuptial agreement must be signed by both parties before getting married, and it will take effect after the couple becomes legally married. A prenup will usually be enforceable if it is in writing and signed by both parties. However, under Texas law, a prenuptial agreement may be unenforceable in the following situations:

  • Coercion or duress - A prenup must be signed voluntarily by both parties. If one spouse threatened the other or manipulated them into signing a prenup, the agreement may be found to be invalid. For example, if a person waited until the day of their wedding to present their partner with a prenup and stated that they refused to get married unless the prenup was signed, this could be seen as coercion. To avoid these issues, a prenuptial agreement should be prepared well in advance of a couple’s wedding, and both parties should be able to consult with an attorney to ensure that they understand and are satisfied with the terms of the agreement.
  • Unconscionability - A prenuptial agreement may be found to be invalid if it is unconscionable, or grossly unfair to one party. However, a prenup will usually only be considered unconscionable if one party did not provide the other with a reasonable disclosure of their assets, debts, and other relevant financial information, if the other party did not waive their right to receive a financial disclosure, and if the other party did not have a reasonable knowledge of their partner’s financial circumstances. To ensure that a prenup will be valid, spouses should provide each other with a full disclosure of the assets they own, the debts they owe, and all sources of income.

It is also important to note that prenuptial agreements can make decisions about a couple’s property and finances, including deciding how assets will be divided in a divorce and whether one spouse will pay spousal support to the other. However, a prenup cannot decide matters related to child custody or child support. If a prenup attempts to address these issues, these terms may be disregarded, or the agreement as a whole may be found to be invalid.


If you earn a large income or own valuable assets, you will want to make sure you are financially protected if you or your spouse choose to pursue a divorce. In many cases, the best way to protect yourself from financial losses in a high net worth divorce is to make decisions ahead of time about how certain issues will be handled. A prenuptial agreement, which you and your partner can sign before getting married, will allow you to specify how you will handle the division of community property if your marriage ends, as well as other matters related to your finances.

To be valid and enforceable, a prenuptial agreement (also known as a “prenup”) must be in writing, and it must be signed before you get married. Both spouses must also provide each other with a fair and reasonable disclosure of their finances, including the property they own, the income they earn, and the debts they owe. A spouse can waive their right to receive a financial disclosure from the other party, but this waiver must be completed before the prenup is signed.

What Decisions Can a Prenuptial Agreement Make?

In Texas, a prenuptial agreement is also known as a “marital property agreement,” and it can include decisions related to the ownership or disposition of the couple’s property, including community property or separate property owned by either spouse. A prenup can define each party’s rights and obligations toward their property during their marriage, including the right to buy, sell, lease, transfer, or use physical property, real estate, financial instruments, or anything else owned by either or both spouses.

Back to Top