When are Marital Agreements Necessary?

Marital agreements are becoming increasingly common as more couples recognize the importance of protecting their assets and clarifying their expectations before getting married. Many people who are about to marry contemplate, “When are marital agreements necessary?” and mistakenly conclude that they are only for the wealthy. Marital agreements can benefit many couples, though, regardless of their current financial status, and it is important for engaged and married couples to understand when they are appropriate. If you would like to learn more about marital agreements, it is in your best interest to speak to an attorney about your options. The Dallas family law attorneys of McClure Law Group can analyze your unique circumstances and advise you regarding what measures you can take to protect your interests.

The Texas Family Code (the Code) governs agreements that parties enter into before or after marriage to define their property rights, specifically, premarital agreements and partition or exchange agreements. Premarital agreements are essentially contracts between future spouses that define their property rights before they get married. These agreements must be in writing and signed by both parties. Notably, they are valid without any consideration exchanged between the parties.

Premarital agreements can be used to specify each party's obligations and rights with regard to current or future property and how it will be distributed in case of divorce or death. They can also be used for making wills or trusts, defining spousal support rights, or any other matter that doesn't violate the law or public policy. Premarital agreements cannot define child support or custody rights, however. Once the parties are married, any changes or revocations to the premarital agreement require a written agreement signed by both parties.

Similarly, partition or exchange agreements are contracts entered into by spouses after marriage to define their property rights. As the name suggests, they can be used to divide separate or community property, and they must be in writing and signed by both parties. Like premarital agreements, partition or exchange agreements do not require any consideration to be enforceable, and any changes must be in writing and signed by both parties. However, before signing full disclosure of assets is necessary unless waived by the parties.

Marital agreements may be necessary in a variety of situations. One of the primary reasons parties should consider entering into marital agreements is to protect separate property. Texas is a community property state, which means that, with some exceptions, any property the parties acquire during the marriage is considered community property and is subject to division in a divorce in a manner the court deems just and right. Property that was owned by one spouse before the marriage or that was acquired by gift or inheritance during the marriage is considered separate property, however, and is not subject to division. A marital agreement can help protect separate property by clarifying which assets are considered separate and will remain separate throughout the marriage. This is especially important when one party has significant assets.

A premarital agreement can also address spousal support, also known as alimony. The Texas courts award spousal support in limited circumstances, but the Code permits parties to use premarital agreements to define their own terms with regard to spousal support, including the amount and duration of payments in the event that they divorce.

One often overlooked benefit of premarital agreements is that they can be useful estate planning tools. In other words, they can specify how property will be distributed upon the death of one spouse, which can help avoid disputes and minimize estate taxes. This is especially important for couples who have children from previous marriages or relationships as well, as it can help ensure that each spouse's assets are distributed according to their wishes.

It is not uncommon for people who are about to get married to wonder, “When are marital agreements necessary?” and generally, the answer is “more often than you think.” If you are interested in discussing marital agreements and whether you may benefit from entering into one, it is wise to meet with an attorney. The trusted Dallas lawyers of McClure Law Group are skilled at helping people develop comprehensive marital agreements, and if you engage our services, we will aid you in determining the best way to protect your rights. Our primary office is located in Dallas, and we have a Collin-County office in Plano where we are available to meet clients by appointment. We often aid people with family-law matters in Dallas, Fort Worth, Rockwall, Frisco, McKinney, Irving, Richardson, and Garland. We represent people in family law cases in cities in Dallas, Collin, Denton, Rockwall, Tarrant, and Grayson Counties as well. You can contact us by using our online form or calling 214.692.8200 to set up a confidential meeting.