Prenuptial Agreements

For those concerned about the possibility of divorce down the road, premarital agreements or "prenups" are a reasonable precaution. When a person marries, often his or her separate property comingles with property that is considered community property. This comingling can create major complications in the event of divorce.

Under Texas law, all community property is subject to division in a divorce. All property possessed by either spouse is rebuttably presumed to be community property, unless it is proven to be separate property. A premarital agreement allows a person who is about to marry to preserve and protect his or her separate property estate, by predetermining the characterization of property or income at the time of divorce or death.

Prenups are most popular with people who enter a marriage with large assets. Often these assets are not easily divisible, such as an interest in a family owned business or a large tract of real estate. Though most premarital agreements are mainly concerned with complex property issues, they can set boundaries on many other issues in a marriage.

Premarital agreements can involve:

• Wills and trusts

• Rights to control property during the marriage

• Dividing retirement and employee benefits

• Homestead rights

At KoonsFuller, we have decades of experience in creating and dealing with premarital agreements and the unique circumstances and needs of our clients.

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