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Prenuptial agreements a versatile way for couples to establish terms of marriage, divorce, P.2

In our last post, we noted that different couples have different needs and circumstances and that prenuptial agreements can be used in a variety of ways to address each couple’s situation. In other words, prenuptial agreements are not one-size-fits all. They can be specifically tailored to meet specific needs.

Texas’ Uniform Premarital Agreement Act is fairly clear about the subject matter parties may deal with in a prenuptial agreement. For couples who are planning on negotiating a prenuptial agreement to address their situation, it is important to be aware of the law so that their agreement is valid and enforceable later on if it happens to come into dispute. 

Prenuptial agreements may be used to address a variety of matters, including:

  • Each party’s rights and obligations with respect to any property;
  • The right to manage and control property;
  • The way property is handled upon separation, divorce, death or other selected events;
  • Modifying or altogether eliminating spousal support;
  • Ownership and handling of life insurance proceeds; and
  • Establishing estate planning documents to reflect the terms of the premarital agreement.

Prenuptial agreements may also specify the state law that will be used to interpret the agreement when disputes arise, as well as any other matters that do not violate public policy or criminal law. State law does specify, though, that premarital agreements may not be used to adversely affect child support.

The flexibility of prenuptial agreements is certainly a positive thing, but it also means that it is important to work with an experienced advocate to make sure that one is not disadvantaged in the negotiation process. We’ll say more about this in our next post. 

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