Love may be priceless, but assets are not. For high-net-worth families, the blending of lives through marriage also means the merging of estates – and potential exposure to significant financial risk. A carefully considered prenuptial agreement is not about anticipating failure; it is about proactively safeguarding the wealth you have built and better ensuring clarity and security for future generations.
What is a prenuptial agreement?
Prenuptial agreements are contracts used by couples prior to marriage that outline the division of assets and financial responsibilities in the event of a divorce. They are one of few key legal tools that can help preserve wealth. In Texas, as in many states, prenuptial agreements are generally enforceable, provided they meet certain legal criteria.
What legal criteria are needed in Texas for an enforceable prenup?
The Texas Family Code outlines these criteria. Key factors that determine enforceability include:
- Voluntary execution: Both parties must sign the agreement voluntarily. Any evidence of coercion or duress can render the agreement unenforceable.
- Full disclosure: Each party must provide a fair and reasonable disclosure of their financial obligations and property. Without full disclosure, the agreement may be invalid.
- Fair and reasonable terms: The terms of the agreement must not be unconscionable. An unconscionable agreement is one that is excessively unfair to one party.
Courts in Texas will not enforce prenuptial agreements that contain unconscionable terms. The courts will generally consider an agreement unconscionable if it is grossly unfair or oppressive to one party. The court will generally look to a number of factors when making its determination. This can include a review of whether the terms were clear and understandable.
When tailored to a specific marriage, the agreement can offer protection and help both parties to the marriage move forward with peace of mind. An experienced, Board-Certified Family Law expert attorney can review your situation and help tailor a prenuptial agreement to meet your family’s needs.