Are Marital Agreements Only for High-Asset Couples?

Many Texas households earn $150,000 or more per year. With this upper-class threshold on the rise, it is understandable that the number of marital agreements our firm draws up each year. But are marital agreements only for high-asset couples? The quick answer is no, any couple can benefit from a prenuptial or postnuptial agreement to protect their assets and finances. Learn more about these valuable tools and reach out to Kimbrough Family Law, if you are considering having us draft one to protect your legal interests, enhance security, and reduce conflict.

What Is the Purpose of a Marital Agreement?

A marital agreement has three primary purposes, including protecting separate property in the event of divorce or death. This contract clearly identifies assets owned before marriage, gifts, or inheritance, and outlines what is considered joint property. Texas is a community property state. Therefore, a properly executed legal contract is the only way to convert, partition, or exchange what would normally be marital assets into separate property.

It also aims to define financial rights, particularly protection from debt, by safeguarding one spouse from the other’s personal or business liabilities. A marital agreement also sets clear financial expectations to reduce future conflict and minimize legal costs should the marriage end. It may also include provisions that secure inheritances for children from previous marriages.

There are many reasons why couples of all income levels would want to have a marital agreement drafted by a skilled attorney. They are ideal agreements for anyone who wants to protect their assets, clarify financial expectations, manage debt, or protect children from previous relationships. These contracts offer legal protection, security, and reduced conflict for couples regardless of their financial standing.

How to Ensure Your Marital Agreement Is Valid in Texas?

For a marital agreement to be valid, the Texas Family Code requires all premarital and marital agreements to be in writing and signed voluntarily by both parties, without coercion, duress, or undue influence. We recommend signing the agreement well in advance of a wedding to avoid claims of coercion, as signing under pressure just before taking your vows can lead to an unenforceable contract.

Both spouses must provide complete and accurate information about their finances, including assets, debts, and income. Otherwise, a failure to disclose can render the agreement invalid, as could unfair or unconscionable terms. While not strictly required by law, having separate attorneys for both parties strongly supports the premise that the agreement was understood and fairly negotiated.

Reach Out to Discuss Your Marital Agreements with a Skilled Advocate

Now that you know marital agreements are not only for high-asset couples, reach out to discuss your unique circumstances with our team. The skilled family law attorneys at Kimbrough Family Law, have the knowledge and experience you are looking for and the guidance you can trust.

Our Austin law firm is down-to-earth and approachable, but serious about the matters that are important to you. Whether you need help understanding child possession and access, community asset distribution, or spousal maintenance, you are in the right place. Contact us today.