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

Nowadays, when up to 50 percent of marriages end in failure, couples do well to protect themselves from the financial risks of divorce. One of the most effective ways to do this is for engaged couples to negotiate a prenuptial agreement which spells out how property division will work in the event of divorce.

Prenuptial agreements are typically used by the wealthy, but you don’t have to be rich and famous to benefit from a prenuptial agreement. In fact, over the last twenty years prenuptial agreements have come into greater use among those of more modest wealth. 

Each couple’s reasons for negotiating a prenuptial agreement are slightly different, depending on their circumstances and assets. For some individuals, a prenuptial agreement may be important to protect business interests. For others, a prenup can protect them from significant debts their spouse takes on during the marriage. For those who marry older, a prenup may be a way to protect retirement assets.

Prenuptial agreements can be used for more than simply protecting wealth in the event of divorce, though. Some use a prenup to deal with estate planning matters, particularly if they have children from previous marriages. Those with well known public identities may use a prenup to hash out matters of confidentiality. Prenuptial agreements can also be used to establish how financial decisions will be made in the marriage.

In our next post, we’ll look a bit more at what Texas law has to say about prenuptial agreements and their potential uses. 

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