When couples consider a prenuptial or postnuptial agreement, they often focus on what happens during marriage but overlook how unexpected financial changes can play a role later on. These agreements are more than just legal documents; they are a plan for future security. For couples, understanding how Texas law treats these agreements is crucial for making informed decisions both before and after marriage.
In the video, Atty. Tyler Monahan of Turner-Monahan PLLC explains how financial changes can affect prenuptial agreements and what that means during a divorce. All case evaluations are based on Texas Family Law. This content is for educational purposes only.
Understanding Prenuptial and Postnuptial Agreements
At Turner Monahan, we understand that discussing prenuptial or postnuptial agreements can be challenging. These agreements are important because they set clear expectations for both spouses about property and income. Many people have questions about how changes in financial circumstances might affect these agreements, especially during divorce.
How Financial Changes Impact a Prenuptial Agreement
One common concern is whether a major change in one spouse’s financial situation will affect the terms of a prenuptial agreement. For example, if one spouse suddenly earns or inherits a large amount of money, will that change how property is divided in a divorce?
The answer depends entirely on what is written in the agreement. If the prenuptial agreement clearly states that each spouse’s income remains their separate property, then no matter how much money one spouse earns in the future, that income will stay with them. It does not matter if the change is small or very large. The original terms will still apply.
Example of How It Works
For instance, imagine that the agreement states:
- All income that comes to Spouse A will always be Spouse A’s separate property.
- All income that comes to Spouse B will always be Spouse B’s separate property.
If Spouse A earns a small salary at the time of the marriage but later wins or earns one trillion dollars, that money would still belong only to Spouse A. Spouse B would not receive any of it unless the agreement says otherwise. The same rule applies in reverse.
This is why it is very important to be clear and specific when creating a prenuptial or postnuptial agreement. The wording directly impacts what happens in the future, especially in a divorce.
Why Careful Planning Matters
At Turner Monahan, we help clients think through these details before signing any agreement. A well-prepared document can prevent stress, conflict, and confusion later on. It ensures both spouses fully understand their rights and responsibilities.
Even if financial circumstances change dramatically, the agreement will stand as long as it was written correctly and both parties agreed to it at the time of signing. This provides stability and clarity during marriage and in the event of a divorce.
Common Mistakes People Make in Prenuptial Agreements
Many couples make mistakes when drafting their agreements, which can cause problems if a divorce happens later. A common issue is using unclear language that leaves room for different interpretations.
Another mistake is failing to update the agreement when major life events occur, such as buying a house, starting a business, or having children. Without clear and updated terms, an agreement may not fully protect either spouse. Working with an experienced attorney can help avoid these problems.
How Courts Decide If an Agreement Is Fair
Even when a prenuptial agreement is signed, courts in Texas can review it to determine if it is fair. If one spouse was pressured to sign or did not fully understand what they were agreeing to, the court may find it invalid.
Courts also consider whether both spouses provided honest and complete information about their finances at the time of signing. If there was hidden information, the agreement could be challenged. This makes transparency and proper legal advice very important from the start.
What the Texas Family Code Says About Prenuptial Agreements
The Texas Family Code provides clear rules for prenuptial and postnuptial agreements. Understanding these rules helps ensure your agreement is valid and enforceable.
Section 4.002: Writing and Signing Requirements
This section requires that all prenuptial agreements be in writing and signed by both parties. Without a written and signed document, the agreement will not hold up in court.
Section 4.006: Grounds for Making an Agreement Unenforceable
If one spouse can prove they were forced or pressured to sign the agreement, the court may rule it invalid. Similarly, if one spouse hid important financial information before signing, the agreement could be challenged.
Section 4.003: Permitted Content in Agreements
This section explains what a prenuptial agreement can include, such as property division, business ownership, and debt responsibility. However, it also states that agreements cannot violate public policy or negatively impact a child’s right to support.
Section 7.001 – Division of Property at Divorce
Even with a valid agreement, the court will still look at how property is divided under Texas law. This section gives the court the power to divide property in a fair and just manner if no clear agreement exists.
By following these rules, couples can create agreements that are strong, clear, and legally sound.
Hire An Experienced Fort Worth, Texas, Divorce Attorney
Financial changes can be unpredictable. Having a clear prenuptial or postnuptial agreement protects both spouses and reduces the risk of arguments if a divorce occurs. By setting clear rules from the beginning, you can focus on building a future together with confidence and peace of mind.
At Turner Monahan, we are here to guide you through this process with care and experience. Schedule a free, no-obligation consultation with Attorney Tyler Monahan to discuss the details.
Check our website for more information about our services. Plus, don’t forget to go through our blog to find out more about your case. There is tons of information on divorce and answers to unique questions like “How Can Parents Establish a New Normal That Prioritizes Their Children?”
FAQs Regarding Divorce
Divorce cases are unique, so you will have many questions. To save you time and hassle, here are some topics that revolve around the area. For more information, contact our firm, Turner-Monahan, PLLC.
Disclaimer
The commentary and opinions are for informational and educational purposes only and are not intended to provide legal advice. You should contact an attorney in your state for legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PLLC, by signing a written retainer agreement.
