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4 ways your prenup might not address property division scenarios

On Behalf of | May 14, 2024 | Property Division |

The goal of prenuptial agreements is to provide clarity and protection in the event of divorce.

However, prenups sometimes overlook some property division situations. This could potentially lead to disputes and dissatisfaction during divorce proceedings.

1. Failure to account for future assets

Prenups typically outline the division of assets owned prior to marriage. However, they may not consider income, investments or property obtained during the marriage. Without clear guidelines for these assets, couples may disagree about how to divide them.

2. Inadequate protection for business interests

Many couples have entrepreneurial endeavors or business interests. Prenuptial agreements should include details on the division or protection of these assets.

However, some agreements may lack specificity regarding business valuation methods, ownership rights or the handling of future profits. These comprehensive guidelines help avoid contentious disputes over the distribution of business assets.

3. Unforeseen changes in financial circumstances

Financial circumstances can change significantly over time. Prenuptial agreements that fail to anticipate such changes may not adequately address scenarios such as job loss, disability or inheritance. Without provisions for these circumstances, divorcing spouses may find themselves grappling with unforeseen challenges and disparities in financial outcomes.

4. Overlooked debts and liabilities

Some agreements may focus solely on asset division. This leaves couples vulnerable to disputes over the allocation of debts such as mortgages, loans or credit card balances. In Texas, the average credit card balance is $7,211. Failing to address these financial obligations can lead to inequitable outcomes and financial strain for both parties post-divorce.

Couples in Texas should carefully review their prenups to ensure they address all relevant property division scenarios. If they are already divorcing, they should go over their prenuptial agreement with legal counsel to understand its implications and ensure a fair resolution.


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