Texas parents who are concerned about protecting the inheritance that they want to give their adult children who have not yet married should speak with them about signing a prenuptial agreement. The legal document allows their child and the child's prospective spouse to legally stipulate before they get married what will be each party's property rights should the marriage end.
Prenups are advantageous as they can save money and time and can protect a child's inheritance. However, both parties do have to enter into the agreement voluntarily and provide complete financial disclosure.
Parents may also want to advise their adult children who are considering marriage of the other benefits of a prenup. With a signed prenup, there will be no need to prove in court the separate ownership of assets, such as investments or pensions. Both parties can also use the document to specify that other assets, such as future appreciation and income, will not be subject to allocation if a divorce occurs.
The prenup agreement can also benefit people who are business owners. An engaged couple can require that the income earned from the business will continue to be separate property if the marriage ends. Having to complete a prenup forces both parties to be open about their premarital debt. Each party can limit their responsibility for the debt accrued by their future spouse and can specify which debts should be paid from each party's personal assets.
A family law attorney may assist a client with drafting pre- and post-marriage agreements. The attorney will assess a client's assets and negotiate terms that ensure that the client will be able to maintain ownership of his or her inheritance or wealth.