A marital property agreement in Texas, also known as a prenuptial (before marriage) or postnuptial (after marriage) agreement, is a legal document that specifies how a couple will divide their assets and debts in the event of a divorce, death, or sometimes even during the marriage.
This means that, without a marital property agreement, any property acquired by either spouse during the marriage (with some exceptions such as gifts and inheritances) is generally considered community property and is typically divided equally between the spouses in the event of a divorce.
However, a couple may choose to modify the community property rules by entering into a marital property agreement. This agreement can define what property is to be considered separate property (which belongs solely to one spouse) and what is to be considered community property.
Of course, nobody ever wants to consider the prospect of divorce, but there are benefits to coming to an agreement regarding marital property before or during the marriage. An agreement made while a couple is in a good place allows them to consider what is best for each other without emotions affecting their decisions.
In this article, our experienced divorce and family law attorneys at Varghese Summersestt Family Law Group explain marital property agreements in Texas, the various types of marital agreements, and how our attorneys can assist you and your fiance or spouse are interested in drafting, reviewing, or understanding such agreements to ensure your assets are protected and your rights are upheld in the future.
In Texas, the law classifies marital property into two main categories: community property and separate property
Community property refers to all income, assets, and debts acquired by either spouse during the marriage, regardless of whose name they are in. This includes real estate, retirement accounts, and personal property. Texas is a community property state, meaning that, in the absence of a marital property agreement, all community property will be divided equally between spouses in the event of a divorce.
Separate property, on the other hand, refers to assets and debts that a spouse acquired before marriage or received during the marriage as a gift or inheritance. Separate property is not subject to division in a divorce.
There are two main types of marital property agreements in Texas that can help you protect your assets and avoid disputes during divorce:
A prenuptial agreement is a legal contract entered into by a couple before marriage. It outlines the division of assets and debts in case of divorce or the death of a spouse. Couples can use a prenuptial agreement to establish separate property rights and protect their premarital assets.
A postnuptial agreement is similar to a prenuptial agreement, but it’s signed after the couple is married. This type of agreement can be used to modify the couple’s property rights or establish new separate property agreements during the marriage.
The contents of marital property agreements in Texas can include almost anything as long as it doesn’t break the law, hinder your children’s ability to receive child support, or violate Texas public policy. Marital property agreements can include provisions related to:
In Texas, for a marital property agreement to be enforceable, it must be in writing and signed by both parties. It’s always advisable to consult with an attorney when creating a marital property agreement, as the laws regarding these agreements can be complex. The agreement should be fair and transparent, and both parties should fully disclose their assets and debts.
There are several reasons why a couple may want to create marital property agreements, such as prenuptial agreements (pre-nups) or postnuptial agreements (post-nups), in Texas, or anywhere else, before or during their marriage. These reasons can include:
Creating a marital property agreement is a significant legal action with long-term implications, so it’s important to consult with an attorney who specializes in family law. They can help you understand the legal consequences and ensure your rights and interests are protected.
For a marital property agreement to be legally enforceable in Texas, it must meet certain requirements:
In the event of a divorce, a marital property agreement can help to simplify the division of assets process. By clearly outlining the couple’s intentions and expectations, these agreements can minimize disputes and lead to a more amicable divorce.
Property Settlement Agreement: A property settlement agreement is a legally binding contract that outlines how a couple will divide their assets and liabilities during a divorce. This agreement can be created as part of a prenuptial or postnuptial agreement, or it can be drafted during the divorce process. A property settlement agreement may include provisions related to:
Even with a marital property agreement in place, a Texas court may review the agreement during a divorce to ensure that it is fair and reasonable to both parties. If the court finds the agreement to be unconscionable or if it determines that one party did not fully disclose their assets and liabilities, the agreement may be invalidated or modified.
Given the complexity of Texas marital property laws and the potential consequences of an improperly drafted agreement, it’s essential to seek the guidance of a skilled family law attorney when creating or modifying a marital property agreement. At Varghese Summersett Family Law Group, our attorneys have extensive experience helping clients protect their assets and interests through prenuptial, postnuptial, and property settlement agreements.
Understanding the intricacies of marital property agreements in Texas can be challenging, but with the assistance of a knowledgeable attorney, couples can ensure their assets are protected, and their financial future is secure. By carefully considering the benefits and potential drawbacks of marital property agreements, couples can make informed decisions about how to manage their assets during marriage and in the event of a divorce.
If you need help creating a marital property agreement or navigating the complexities of Texas marital property laws, call Varghese Summersett Family Law Group today at 817-900-3220 or contact us online . Our experienced family law attorneys can guide you through the process and help you create an agreement that meets your specific needs and goals. Don’t leave your financial future to chance; let our team protect your assets and interests.
A marital property agreement in Texas is a legal document that outlines how a couple will divide their assets and liabilities during a divorce. This agreement can be created as part of a prenuptial or postnuptial agreement, or it can be drafted during the divorce process.
What makes a marital property agreement binding?
A marital property agreement is binding when it is in writing, signed by both parties, and executed with full disclosure of assets and liabilities. The agreement must also be fair and reasonable to both parties. If the agreement is found to be unconscionable or based on incomplete disclosure, the court may invalidate or modify the agreement.
What are common marital property agreements in Texas?
Common marital property agreements in Texas include prenuptial agreements, postnuptial agreements, and property settlement agreements. These agreements typically address the division of real estate, allocation of retirement accounts and pensions, distribution of personal property, assignment of debts, and division of business interests.
Do courts in Texas review marital property agreements during a divorce?
Yes, Texas courts may review marital property agreements during a divorce to ensure that they are fair and reasonable to both parties. If the court finds the agreement to be unconscionable or if it determines that one party did not fully disclose their assets and liabilities, the agreement may be invalidated or modified.
How can a family law attorney help with a marital property agreement?
A skilled family law attorney can help draft, review, and modify marital property agreements, ensuring that they comply with Texas law and protect the client’s assets and interests. The attorney can also provide guidance on the potential consequences of an improperly drafted agreement and help navigate the complexities of Texas marital property laws.
Are marital property agreements only used in divorce?
No, marital property agreements can be used both in anticipation of marriage (prenuptial agreements) and during marriage (postnuptial agreements) to clarify the couple’s financial rights and obligations, as well as to establish how assets and liabilities will be divided in the event of a divorce.
Can a marital property agreement be changed after it has been signed?
Yes, a marital property agreement can be changed or amended after it has been signed, as long as both parties agree to the modifications and the amended agreement is in writing and signed by both parties.
What happens if a couple does not have a marital property agreement in Texas?
If a couple does not have a marital property agreement in Texas, their assets and liabilities will be divided according to Texas community property laws in the event of a divorce. This typically means that all community property (assets and debts acquired during the marriage) will be divided equally between the spouses, while separate property (assets and debts owned before the marriage or acquired by gift or inheritance) will remain with the original owner.