Austin Prenuptial Agreements Lawyer

Austin Prenuptial Agreements Attorney

Divorce can be one of the most stressful situations people will experience in their lifetime. In addition to the emotional strain of permanently ending a relationship, the financial pressures of dividing up your collective assets may leave both parties feeling like it is a “lose-lose situation.” For this reason, many couples are now deciding to make those decisions at a time when they are happiest: before they walk down the aisle. If you are considering a prenup, an Austin prenuptial agreements lawyer can help.

What is A Prenuptial Agreement?

Before entering into a marriage, many people choose to create a prenuptial agreement to protect their financial interests in the event of a divorce. A prenuptial agreement is a type of contract entered into by individuals prior to marriage. It sets out the manner in which specific financial matters shall be resolved in the event of a marital dissolution.

To be enforceable, however, a prenuptial agreement must follow the letter of the law. Texas courts have, on many occasions, chosen not to enforce the provisions of a prenuptial agreement due to a lack of financial disclosure by one or both of the parties. In a prenup, parties can indicate the division of assets nearly any way they choose.

The agreement can be very broad, and can indicate that each spouse is only entitled to earnings that they are personally responsible for during the marriage. Generally, as long as the agreement was entered into voluntarily by both parties, the agreement will be upheld by a court.

Marital Agreements Can Protect Both Parties

Prenups provide a clear framework that protects both parties in advance of marriage. If one spouse has significant assets, a business, or other property for which they wish to maintain sole ownership, a prenuptial agreement can protect these assets from division in a divorce.

If a spouse has children from a prior marriage, a prenup provides safeguards that enable assets to be passed on to their children instead of their spouse in the event of death or divorce.

Prenups can include:

• Monthly spending allowances for self-care and clothing
• Delineating which spouse receives property such as vehicles, furniture, and other valuables
• Intellectual property rights
• Protections for business assets
• Business travel allowances

If one party enters into the marriage with significant debt, a prenup can protect the other spouse from the risk of assuming that debt as a consequence of marriage. Every relationship is different. During the prenuptial agreement process, your attorney can help you evaluate which issues matter the most and establish provisions that protect both parties.

Either party can initiate the prenuptial agreement process. The terms are negotiated in the comfort of your attorney’s office before the legal marriage occurs.

Texas Prenuptial Agreement Statistics

Prenuptial agreements are more common than ever. Fifteen percent of married people mention that they have signed a prenup before. In addition, 62 percent of those who requested prenups reported they did so to protect assets.

About half of US adults say that they support prenups, which erases the myth that prenuptial agreements are looked upon negatively. The number of people who have signed a prenup has dramatically increased in recent years. Although prenups might have been looked down upon in the past, many people accept their utility as a legal tool today.

Separate and Community Property Under Texas Law

Chapter 7 of the Texas Family Code indicates that the “estate of the parties” must be divided before the finalization of a divorce action. This estate has been interpreted to refer to only community property. Community property is generally defined as property acquired by either spouse during the marriage that is not separate property.

The Texas Family Code provides that any real property, such as a house, or personal property the spouse owned prior to the marriage is considered to be separate. Additionally, property that was a gift to the person during the marriage, or that was provided in a will or estate proceeding to the person individually, will be considered separate property.

REQUEST A CONSULTATION

What to Include in a Prenup in Austin?

Many couples do not take the opportunity to discuss finances and important details regarding financial goals until after marriage when certain conflicts are likely to arise. The following topics are helpful to discuss when planning to execute a prenup:

• Joint bank accounts, separate bank accounts, or both.
• How each person contributes to the household expenses, which may or may not be dependent on each spouse’s household income.
• Whether one party expects the other to take substantial time off work to raise children.
• Certain assets you are likely to inherit in the future from a relative or loved one.
• Each party’s habits and expectations concerning spending, debt, and saving.

Entering into a conversation about important financial matters can help clarify each person’s goals and can assist in the formation of mutual goals.

REQUEST A CONSULTATION

Why Every Couple Should Consider a Prenuptial Agreement?

People often assume that prenuptial agreements are only for the wealthy, but any couple entering into a marriage should understand what is at stake if a marriage ends in divorce. A prenuptial agreement isn’t unromantic. It’s practical and responsible, especially if there are children involved. Negotiating important matters now can help alleviate stress and questions about the financial responsibilities each partner holds within the marriage.

Young people still represent many engaged couples, but people also marry late in life, after they have accumulated property and earned significant assets. A prenuptial agreement can provide a framework that can help expedite and simplify the divorce process if it ever becomes necessary.

A prenuptial agreement does not mean that you don’t trust your partner. In fact, the process of establishing a prenuptial agreement can help to improve communication and set expectations before the marriage begins.

Prenups are not only protection during a divorce, but can also protect assets in the event of a spouse’s death. Prenuptial agreements can create peace of mind and help prevent uncomfortable conversations and arguments later.

Austin Postnuptial Agreements

In some cases, couples determine after they are married that they wish to enter into a contract that specifies their financial rights and obligations in the event of a divorce. In these cases, a postnuptial agreement may be drafted to carry out the wishes of the parties. These wishes often include:

• Taking responsibility for separate debt: When one spouse comes into the marriage with significant debt, a postnup can keep debt with just that spouse.
• Protecting yourself from liability: When one spouse takes on financial risk from a business venture or investment, the other spouse can remain shielded from financial liability with the help of a carefully drafted postnup.

Postnuptial agreements can also help if you face marital troubles or decide to live separately, but are not sure divorce is the appropriate option. A postnup can set parameters for you and your spouse to live apart for a set amount of time. This allows you to assess the status of your marriage without rushing into an unwanted or unnecessary divorce.

Issues That Can Void A Prenup in Texas

When establishing a prenuptial agreement in Texas, it is important to hire a prenuptial agreements lawyer to draft your documents. An attorney can make sure your documents meet the standards required by Texas law.

There are only two situations that can invalidate a prenuptial agreement:

• Involuntary signing of the agreement: If the prenup was signed under duress or due to coercion, it may be invalidated by the courts.
• Unconscionability plus lack of disclosure: This occurs if either party does not disclose a fair and reasonable picture of their finances. If the contesting party provides proof that they did not waive their right to that information in writing, and did not have adequate knowledge of the other party’s financial situation, the prenup may be voided.

These are the only grounds for invalidating a prenuptial agreement in Texas. Both parties must disclose all information in a forthright and honest manner to avoid creating a document that does not meet the criteria outlined in the Texas Family Code.

Establishing a prenuptial agreement should be a voluntary, collaborative process that feels empowering instead of anxiety-inducing. At Jimmy Vaught of Counsel for the Eggleston Law Firm, our confident, client-first approach can provide clarity and guidance that builds trust and security between married partners.

FAQs About Austin, TX Prenuptial Agreements Laws

What Does a Prenup Cost in Texas?

The cost of prenuptial agreements depends on the complexity of the conditions of the agreement, the assets involved, and how long the negotiations take. When you schedule a consultation with our office, we evaluate the details of your case before discussing our fee. Our firm can explain the factors that may impact the cost of negotiating your prenuptial or postnuptial agreement.

What Is Not Allowed in a Prenup in Austin?

There are some items not allowed in a prenuptial agreement in Austin. Texas gives couples a wide degree of latitude when negotiating their prenuptial agreement.

Terms are outlined in Chapter 4 of the Texas Family Code, which states that any matter that does not violate any other statute imposing a criminal penalty or any public policy is legally allowed. A prenuptial agreement may not invalidate the right of a child to receive support.

Can I Establish a Postnup if My Spouse Files for Divorce in Austin?

If your spouse files for divorce in Austin, you will likely have to go through the process of property division through divorce proceedings rather than create a postnup. It’s preferable to establish a postnuptial agreement before or during separation, before the petition for divorce has been filed, to avoid unnecessary complications. Speak to an attorney for more information on whether you are eligible for a postnup.

Which Assets Cannot Be Touched in a Divorce in Austin?

The assets that cannot be touched in a divorce in Austin, even without a prenuptial agreement, include:

• Property owned before marriage
• Gifts from one spouse to another
• Inheritances to one spouse
• Personal injury settlements

These are usually not divisible as community property in a divorce. It is advisable to seek the advice of a knowledgeable lawyer who can evaluate which of your assets might be compromised or subject to division in a divorce.

Request Your Case Consultation

If you need an attorney in the Central Texas area or Austin to draft or review a prenuptial or postnuptial agreement, you should contact the Jimmy Vaught of Counsel for the Eggleston Law Firm.

Jimmy Vaught — who is Board Certified in Family Law and Civil Appellate Law by the Texas Board of Legal Specialization — gives you personal attention and has the experience necessary to use marital agreements to protect your legal rights.

As an Austin marital agreement attorney, Jimmy has drafted many prenuptial and postnuptial agreements and reviewed many drafted by other attorneys. Since the enforceability of these agreements depends on its proper drafting and execution, it is essential you have Jimmy draft or review the agreement so it is in full compliance with the law.

REQUEST A CONSULTATION

Don’t Walk Down the Aisle Without a Prenup. Hire A Prenuptial Agreements Lawyer in Austin, TX

We understand how exciting it is to plan your wedding and plan a life with the one you love. A prenuptial agreement can be a part of your wedding planning process. Without a prenuptial agreement, Texas law determines how marital property is divided, sometimes leading to unfair divorce settlements.

It may seem complicated to consider taking the important step of establishing a prenup. Jimmy Vaught of Counsel for the Eggleston Law Firm is here to help you make informed decisions about your future. We’re ready to answer all your questions about prenuptial and postnuptial agreements.

Contact our office today to schedule your consultation.

REQUEST A CONSULTATION