What Are the Benefits of a Prenuptial Agreement for High-Net-Worth Individuals?

 Posted on January 07, 2022 in Prenuptial Agreements

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.

Protecting Children from a Previous Marriage

If you were previously married and you and your ex-spouse shared children, a prenuptial agreement can protect your children’s financial interests. You can identify certain assets, such as family heirlooms, as non-marital property. This protects the assets from going to your spouse if you divorce each other or you pass away before your spouse.

Establishing Spousal Maintenance

In high-net-worth couples, one spouse’s income may be enough to sustain the family. One spouse may choose to earn an income while the other spouse stays home to manage the house or care for children. Spouses who sacrifice careers to be homemakers or stay-at-home parents often want financial security in the form of spousal support. You can use your prenuptial agreement to establish the terms of spousal support or alimony.

Building a Prenuptial Agreement Ensures You Are on the Same Page Financially

Prenuptial agreements offer a multitude of practical purposes in the event of divorce or the death of a spouse. However, these contracts also offer spouses the chance to have a serious discussion about money, property, financial expectations, and long-term goals. This is hugely beneficial to any marriage.

Contact an Austin Divorce Lawyer

If you are a high-net-worth individual getting married, consider using a prenuptial agreement to establish you and your partner’s financial rights and expectations. Contact the skilled Texas family law attorneys at Powers and Kerr, PLLC for help. Call 512-610-6199 for a confidential consultation.

Source:

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