You’ve heard about Premarital Agreements (sometimes called a Prenuptial Agreement or Pre-Nup), but when should someone thinking about marriage consider preparing, and entering into, such an agreement? Here are some of the top reasons to consider a Premarital Agreement:
1) There is a significant age difference between the two parties
2) One party has an interest in a family business that she or he wants to protect
3) One of the parties has children or grandchildren from a previous marriage
4) One of the parties wants to ensure an inheritance for the new spouse
5) One of the parties was married previously, and the divorce was emotionally and financially devastating.
Premarital agreements are becoming increasingly common in today’s society. In Texas, all assets owned prior to marriage, or received by gift or inheritance, are separate property. Anything acquired or earned during the marriage is presumed to be community property. Often, when entering into a marriage, parties feel the need to protect their savings, retirement benefits, or pass on an inheritance to their children. By entering into an agreement prior to marriage, parties can protect their assets and help ensure that those assets are utilized in accordance with their wishes.
