Prenuptial Agreements: How They Impact Property Division in Houston

Marriage is a commitment between two people to love and support each other through thick and thin. But it is also a legal commitment. Not only must you acquire a marriage license, but there are other complexities that must be considered when entering into a marriage. One of them, unfortunately, is consideration about what would happen if your marriage were to end. While this may seem unromantic and cold to think about before tying the knot, it is a practical matter that should be discussed and thoroughly explored.

One option is to consider a prenuptial agreement (also known as a premarital agreement). Prenups in Texas allow soon-to-be-married couples to establish language about what should happen after the dissolution of marriage or the death of a spouse. There are several benefits to drafting a valid prenup for your marriage. In fact, prenuptial agreements are steadily increasing in popularity across the country, including in Texas.

Among the several benefits that could be included in your prenuptial agreement is some form of asset protection for the division of property that happens in divorce proceedings.

How Does the Division of Property Work in Texas?

Texas is a community property state. All property, financial assets, and real estate acquired during marriage may be considered community property (or marital property). This means that your community property is shared between the two spouses. In a divorce case, the assets will be divided between the spouses by a family law court in a way that is deemed fair and just.

There is such a thing as separate property, though. Separate property is any property that you acquired prior to your marriage. Additionally, separate property may include assets you acquired via an inheritance or gifts. Please note, however, that what was once separate property could become muddled property and be considered community property in the end. This may happen if you put separate property into a shared bank account, put your spouse’s name onto documents related to a pre-existing business, and more.

What Asset Protection Benefits Are Provided by Prenups?

Prenuptial agreements can provide a certain level of asset protection in divorce cases. A prenuptial agreement can help avoid potential issues in a future divorce by naming certain assets as separate property to keep them out of the shared marital estate.

This may be especially useful if one spouse brings significant assets into their marital union but does not want to see those assets divided equally between the spouses in the event of a divorce. In a prenuptial agreement, you can help identify named assets as separate property and hold them exempt from the division of assets, which is otherwise mandatory under Texas family law for community property.

A prenuptial agreement may also benefit those who own a business. Your premarital agreement may stipulate that any income or earnings related to your business ownership should be considered separate property. Additionally, you may ensure that ownership is never in doubt should you and your spouse decide to file for divorce.

Are There Limits to What Premarital Agreements Can Do in Terms of Asset Division?

There are certain limitations as to what sort of financial assets and other property may be held exempt from divorce proceedings with a valid premarital agreement.

For example, a prenup cannot establish an agreement between the two spouses regarding child support. Future child support payments can only be decided by a family law judge who will be directed to follow Texas child support guidelines. In addition to following the guidelines, family law judges are granted a certain level of discretion and may be allowed to deviate from the guidelines based on unique factors related to your child support case.

Additionally, no premarital agreement can include illegal language or allow for illegal acts.

What Other Factors Should Be Considered When Drafting a Prenuptial Agreement?

In addition to considering asset protection for your prenuptial agreement, there are several other factors that may be relevant to your needs and unique goals.

Consider the following:

• Disposition of property upon death or divorce.
• Personal rights and obligations during and after marriage.
• Property rights.
• Management of property.
• Waiver of homestead rights.
• Waiver of spousal support (also known as alimony or spousal maintenance).
• And certain other matters related to your marriage or divorce, so long as they do not violate public policy.

Schedule an In-Depth Consultation with a Houston Family Law Attorney Today

Dodson Law Firm has extensive experience helping clients with family law matters, divorce cases, and the drafting and reviewing of prenuptial agreements. Our Houston-based law firm prides itself on providing clients with caring, communicative, and holistic legal services tailor-made to suit each individual client’s needs.

To learn more about prenuptial agreements and how they may protect your assets in the event of a divorce, we encourage you to get in touch with our Houston legal team today. We would be happy to answer any of your questions and concerns as you consider the many benefits of writing a valid premarital agreement.

Contact us at 713-597-7141.