Most people marry with the idea that marriage will be for life, but divorce rates prove that the reality is that many marriages end in divorce. Parties can protect themselves by drafting a postnuptial agreement, which functions similarly to a prenuptial but is executed after a marriage. These agreements can determine the division of property.
An experienced lawyer can help you investigate the benefits of a postnuptial agreement in The Colony and whether it might be the right choice for you and your spouse. Call Towson Law Firm, PLLC, today to speak with a highly skilled and compassionate postnuptial agreements attorney.
Texas Family Code § 4.105 describes postnuptial agreements and their enforceability. They are legally binding contracts that spouses create after marriage. These agreements address property division, financial responsibilities, and other matters in the event of a divorce, death, or other significant life events.
Postnuptial agreements must meet specific requirements to be enforceable. Both parties must agree willingly, without duress or coercion. The agreement must be in writing, and both spouses must sign it. Each party must provide a complete and fair disclosure of their assets, liabilities, income, and expenses. Although the statute does not require it, the agreement must be fair and reasonable—courts may dismiss agreements they deem grossly one-sided.
The main difference between prenuptial and postnuptial agreements is when the parties execute them. Prenuptial agreements are generally executed before marriage. However, while timing is the clear difference, motivation may be another difference. People usually enter into prenuptial agreements because of financial disparity at the time of marriage. One or both parties want to protect their finances while providing for their spouse.
Postnuptial agreements generally result from a change in circumstances after the parties marry. These events could be negative—adultery, abuse, or financial dishonesty are some examples—or positive. For example, a spouse whose career takes off may need a postnuptial agreement to protect their interests.
A spouse who chooses to be a stay-at-home parent may want a postnup to ensure that their non-economic contributions are recognized in the event of a divorce. The benefits of postnuptial agreement in marriage in The Colony depend on each marriage’s unique circumstances.
While people may think of postnuptial agreements as a way to resolve marriage problems, they have numerous benefits and can help spouses in various marriage scenarios.
Texas is a community property state, which means that assets acquired during the marriage are generally community property. A postnup lets a couple classify certain assets as separate property, which can help them protect investments, family businesses, and inheritances from division.
Financial liabilities are another concern in marriages. Postnups can define who is responsible for existing debts as well as debts incurred during the marriage. This can help spouses protect themselves from financial irresponsibility by another spouse.
Many families are concerned about preserving family wealth. Postnups can help people achieve those goals. When couples have children from other relationships, these agreements can be a handy tool to keep wealth within a family.
These agreements can also help people understand their financial responsibilities. While Texas is a community property state, few couples bring in the same income. A postnup can define who is responsible for specific bills, how the couple will manage savings and investments, and more. They can help establish an equitable distribution of assets during a marriage, not just in the event of a divorce.
Additionally, postnups can help couples who want to reconcile after an event like adultery or domestic violence. By ensuring that the more vulnerable partner will be protected in the event of a divorce, these agreements can provide an incentive for partners to explore reconciliation instead of moving immediately toward divorce.
Postnup agreements can be powerful tools for couples who want to protect and preserve their assets, outline financial responsibilities, provide protection for family money, and safeguard vulnerable spouses.
The benefits of postnuptial agreement in The Colony go beyond what we can describe in a brief article. Schedule a consultation with one of our dedicated marital agreement attorneys to learn more about this underused financial planning tool.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.