Preparing to marry is an exciting time, but Texas couples would be wise to think beyond just the day of the wedding. There are many things that a couple can do to prepare for the future beyond the big day, and one of those things is to draft a prenuptial agreement.
Many people think that these types of legal contracts are only for the wealthy and the famous, but in reality, they can offer many practical benefits to people of all income levels. While there are many positive aspects to this step, it is helpful to consider exactly what you can accomplish with this type of legal contract and what you cannot do.
What are the limits to prenuptial agreements?
Prenuptial agreements typically outline how a couple would want property division to work in case the marriage ends in divorce in the future. However, they can also allow a couple to outline the division of marital debt and each spouse's financial responsibilities in the marriage. There are limits to these agreements. Some people consider the following to be drawbacks of prenuptial agreements:
- Your agreement may include terms that would require you to give up any claim to an inheritance that your spouse may receive over the course of a marriage.
- You might not be able to claim a portion of the profits or assets related to a small business if it greatly increased in value during the marriage.
- It can cause a strain between the two parties as they discuss the potential end of their marriage before it even begins.
In many cases, the benefits of a prenuptial agreement far outweigh any potential drawbacks. However, you would be prudent to carefully consider your agreement and ensure that you do not agree to terms that may not be in your best interests years down the road.
Protecting your future interests is critical
While it may not seem like a romantic prospect, drafting a prenuptial agreement can actually lead to positive conversations between the two parties about to marry. It can help you address financial concerns, responsibilities and other issues before you even walk down the aisle.
Like other types of marital contracts, you should put thoughtful consideration into any agreement that you draft and sign. This step could have a direct impact on your future interests, and a complete evaluation of your case can help you understand how to shield yourself from long-term complications.