Although marital agreements protect the assets of couples if they divorce, they may also address other important issues. While the agreements typically protect financial holdings and valuable property, they could also cover the subject of debts.
If you and your spouse have outstanding loans, a premarital agreement could protect your separate assets from creditors’ claims. Texas law generally allows spouses to keep their separate property apart from a shared marital estate. With a signed agreement in place, a spouse may avoid facing a post-divorce requirement to pay certain debts or liabilities incurred during the marriage.
Divorcing couples could share debts in a community property state
Community property laws could combine the assets and liabilities spouses acquire between the date of their wedding and a divorce. As described by U.S. News, in a community property state, both spouses could become liable to pay their share of debts incurred during marriage.
If a loan or credit card account, for example, has only one spouse’s name on it, both spouses may need to divide the outstanding bill during a divorce. By drawing up a premarital agreement, however, you may work out an arrangement regarding how to split debts or who has the responsibility for paying them after a divorce.
Married couples may need to revise their agreements
Significant financial changes, which could include starting a new career or business, may require making revisions to a preexisting marital agreement. As noted by SmartAsset, post-nuptial agreements could address new financial circumstances or changes in spending habits.
Marital agreements outline how two spouses agree to protect properties, share incomes and divide debts if they divorce. Texas judges generally enforce signed premarital and post-nuptial agreements.