marriage

by Leonard M. Roth, Board Certified Family Law Specialist

Unfortunately, divorce is a life-changing event for married couples of all ages. My grandparents divorced after 65 years of marriage. There are critical factors to consider when divorce happens in your older years.

Texas is one of nine community property states. Property acquired from work during marriage is considered to be shared equally by both spouses. Marriage is a sharing event, and neither spouse has a greater right to the community property than the other spouse, until a court is asked to divide the community estate on divorce. In most marriages, there is a separate property estate that must be confirmed, but not divided, by the court, and a community property estate that must be divided by the court.

So how do DAPTs work in a marriage to protect assets? Do they need to be set up before the marriage? Can they be set up during the marriage?

Marriage might be that last step in bringing two people and two lives together. Nevertheless, that moment often causes one to pause, however idyllic a match may be. Cold feet is cold feet.

When it comes to bringing two financial lives together, there are some hard numbers to work through and some tough decisions to make before opening each other up to one another’s liabilities or the liability of divorce itself. You can use a prenuptial agreement – the so-called “prenup” of courthouses and tabloids alike. Alternatively, as pointed out in a recent Forbes article, titled “How To Protect Yourself In A Divorce Using A Domestic Asset Protection Trust,” you might have better luck with a Domestic Asset Protection Trust or DAPT. It’s a big topic.

Articles Tagged with marriage

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Prenup Vs. Domestic Asset Protection Trust