Protection in Case of Divorce
High-asset divorce cases can be complex when considering the number of assets present and the likely tension over how to split those assets. For couples that have a premarital agreement in place, however, your divorce may be a bit smoother to navigate. Here are the benefits a premarital agreement can have on a divorce.
Define Property Rights
One of the primary purposes of a premarital agreement is that it allows each party to define their rights to assets in the marriage. For those that own real estate, a business, or complex assets prior to marriage, this agreement allows them to maintain those assets’ status as separate property.
For example, say you own a small business that was established prior to getting married. Their status as separate property could change to community property, which is divided during a divorce under Texas law. Having a premarital agreement with provisions establishing property rights can maintain that small business as your separate property that would remain yours in the event of divorce.
Avoid Future Headaches
As mentioned above, high-asset divorce cases can be filled with complexity and tension and have the possibility of taking a longer time to finalize compared to a more “traditional” divorce. A lengthier divorce has the potential of raising the overall cost of the process, as well. The presence of a premarital agreement can cut down on the time it takes to work through the divorce and the cost of litigation.
Since a premarital agreement outlines provisions of property rights and other items, having one in a high-asset divorce can also reduce the number of disputes that can arise throughout the process.
Provide Peace of Mind
A premarital agreement can give its beneficiaries a greater sense of relief should their marriage end in divorce. One of the challenges about any divorce is the uncertainty of the outcome that comes when you are unsure of what may happen to your assets. With a premarital agreement outlining each party’s property rights, you can achieve greater peace of mind.
Do You Need Help Creating a Premarital Agreement?
In order for a premarital agreement to be valid in Texas, it must be signed by both parties and must have been created prior to the marriage taking place. A premarital agreement must also disclose all property and financial obligations, meaning it is important that you not create one on your own. Having an attorney prepare your premarital agreement can ensure that it meets all necessary prerequisites so it holds up in court.
At Kutty Law Firm, PLLC, we have helped many clients create premarital agreements that protect their property rights. We can do the same for you. To get started, call our Sugar Land office at (713) 955-7477 or visit us online and fill out our form.