Postnuptial Agreements in Texas

 Posted on February 17, 2017 in Prenuptial Agreements

While most people have heard of prenuptial agreements, many are unaware that couples can also enter into what are known as postnuptial agreements. Postnuptial agreements are written contracts that are entered into by two parties who are already married. Essentially, postnuptial agreements dictate how a couple’s assets will be divided in the event of death or divorce and so can significantly simplify divorce proceedings. However, not all postnuptial agreements are enforceable, so if you are considering entering into a postnuptial agreement or believe that yours does not meet state requirements, it is important to contact an experienced high asset divorce attorney who will aggressively represent your interests, whether during settlement proceedings or in court.

Dividing Marital Property

In Texas, all property obtained over the course of a couple’s marriage is community property and is usually split equitably between the divorcing spouses. However, if a couple does not have a prenuptial agreement, but does not want to leave the division of their property up to a judge, they can choose to draft a postnuptial agreement that arranges for the division or exchange of some or all of the community property. Furthermore, as part of the exchange, a couple may also agree that any income from the exchanged property will become the separate property of one spouse.

Other common reasons for creating postnuptial agreements include:

• Converting community property into separate property;
• Ensuring that a family business remains in the control of relatives in the event of a divorce;
• Protecting the inheritances of children from prior marriages;
• Protecting one spouse from the creditors of the other spouse; and
• Providing security for those with a difficult marriage.

Executing a Postnuptial Agreement

Regardless of the reason behind the creation of a postnuptial agreement, it must comply with certain requirements in order to be considered valid. For instance, postnuptial agreements must be:

• In writing; and
• Signed by both parties.

If these formalities are not respected, one of the spouses can challenge the agreement at a later date. Other grounds for a challenge include that:

• The agreement was signed under duress;
• The agreement is unconscionable on its face; or
• The challenging party was not provided a complete and accurate disclosure of the other spouse’s property and could not have had adequate knowledge of those assets.

Call Us Today to Speak with an Experienced High Asset Divorce Attorney

Drafting a valid postnuptial agreement can save couples a significant amount of time and money in the event of a divorce. If you are interested in creating this type of agreement, please contact Powers Kerr & Rashidi, PLLC to schedule a consultation with an experienced Georgetown high asset divorce attorney who can explain your legal options.

Source:

http://www.statutes.legis.state.tx.us/Docs/FA/htm/FA.4.htm