How to Avoid the Need for a Prenuptial Agreement - Part 1

A well-designed estate plan structures your assets to keep what you own safe, provide for your future spouse in the event of your death, and protect your assets from divorce. In this two-part series, we’ll discuss the pros and cons of prenuptial agreements and then in part two, we’ll provide estate-planning alternatives you may want to consider.?

Prenup Pros

Sets clear financial expectations:?A well-counseled prenuptial agreement could be an opportunity to start your marriage with complete transparency and clearly establish the financial and property rights of each spouse, should a divorce occur or in the event of the death of either spouse.

Helps protect your separate assets:?This can be vital if you have significant assets like a business, real estate, intellectual property, vehicles, or family heirlooms. If you know you’ll want to ensure your assets go to children from a prior marriage, a prenuptial agreement can protect those assets for them.??

Helps prevent a lengthy, contentious, and expensive divorce:?A long, expensive court battle is the last thing you need when dealing with the painful emotions and often-hefty legal fees associated with a divorce.

Helps prevent disputes over debt:?It could be a good idea to use a prenup to identify who’s responsible for taking care of specific debts and liabilities.?

Prenup Cons

It’s not exactly a romantic gesture:?Marriage involves lots of issues that?aren’t?romantic, and dealing with such delicate matters up front could bring the two of you closer (or expose hidden red flags), regardless of whether an agreement is actually created or not.??

It might not be necessary:?What a prenuptial agreement can cover depends on what kind of assets you have and where you live. We can talk about how the laws in Texas apply to you and your particular asset profile.

It can’t resolve issues of child custody, support, or visitation:?It’s important to note that prenups can’t address certain issues related to children and divorce.

It may require two lawyers to be valid:?Prenuptial agreements may be invalidated if both parties aren’t represented by independent legal counsel.

Alternative options

If you plan ahead, certain estate planning vehicles can be used to protect your assets from divorce settlements and ensure that assets pass to your children from a prior marriage in the event of a divorce. There are different types of trusts, for instance, that can be set up to allow you to protect assets for yourself in the event of a divorce, and for your children in the event of your incapacity or death.?

Meet with us?for additional help deciding whether a prenuptial agreement is the right choice for you and to discuss other estate planning alternatives that could achieve similar protections.

AB Law, PLLC is a full-service business law and estate planning firm that serves clients throughout Texas. All consultations are free and no question is too silly, ridiculous, or complex.?https://calendly.com/ablawpllcwww.ab-firm.com