How Can a Prenuptial Agreement Protect Me in a High-Asset Divorce?

 Posted on August 20, 2020 in Prenuptial Agreements

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.

A prenuptial agreement may also include decisions about the disposition of property in a variety of situations, including divorce, separation, the death of a spouse, or when any other event does or does not occur. In addition to specifying how assets or debts may be divided between spouses, a prenup may state that property will be allocated or transferred to other parties, such as the children of one or both spouses. A prenup can also provide instructions for the creation of a will, trust, or other agreements or arrangements that will be used to carry out its terms.

Spousal support is one other issue that can be addressed by a prenup. Specifically, a prenuptial agreement can include decisions about whether the amount or duration of spousal support can be modified to be different than what would be determined in a divorce case under Texas law. A prenup may also eliminate a spouse’s right to receive spousal support altogether. In some cases, a prenup may state that neither spouse will seek spousal support from the other, while other prenups may state that a spouse will forfeit their right to spousal support if they commit infidelity.

Contact Our Austin Prenuptial Agreement Attorneys

If you are looking to create a valid and enforceable prenuptial agreement before getting married, or if you need to determine how your prenup will affect an impending divorce, Powers and Kerr, PLLC can provide the legal help you need. Contact our Austin, TX high net worth divorce lawyers today at 512-610-6199.

Source:

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