The Importance of a Prenup

 Posted on May 31,2013 in Prenuptial Agreements

Marriage vows end with "Til death do us part". But just in case it doesn't work out that way, it's always good to have a prenup.

A prenuptial agreement is a plan that addresses the financial consequences if a marriage does end. There are many important reasons why couples should have one in place before the wedding. If one of the parties is wealthy and the other is not, it protects both in the event of a divorce, by clearly spelling out what each party is entitled to upon the dissolution of the marriage.

If one party is bringing a high load of debt into the marriage, a prenup can help make sure the other spouse doesn't become responsible for paying those debts if the marriage ends.

When one of the couple owns a business, a prenup ensures that an ex-spouse does not become a permanent business partner. Prenups also help keep prior estate plans in place.

If you are considering a prenuptial agreement, it's important for the couple to both consult with attorneys. By not doing so, there is the risk that the agreement could be ruled as invalid in future divorce proceedings. That's what happened to one couple recently, when the judge presiding over their divorce ruled that the wife had been coerced into signing the agreement.

The wife claimed the husband had threatened to cancel the wedding just days before it was scheduled if she didn't sign the agreement. He also told her he would tear up the agreement once they had children. But three children later, the husband introduced the agreement during their divorce proceedings. The judge agreed with the wife and ruled the agreement was invalid.

If you are considering a prenuptial agreement, consult with a qualified Austin family law attorney to make sure you are fully protected in the event your happy ending doesn't turn out that way.