MICHIGAN PRENUPTIAL AGREEMENTS
When it comes to planning your life with your future spouse, it is exciting and busy with the details of the wedding, living arrangements and managing family drama. However, there may be one item you are not considering or are having difficulty approaching with your future spouse. That is a prenuptial agreement. Having this honest discussion about the handling of money and sticky issues such as debt and financial plans for the future is a necessity for any couple about to be married.
WHAT IS A PRENUPTIAL AGREEMENT?
It is a contract entered into prior to marriage that determines what will happen to premarital assets in case the marriage ends or one spouse dies.
ARE PRENUPTIAL AGREEMENTS JUST FOR THE WEALTHY?
It makes sense to have a prenuptial agreement when one spouse enters a marriage with significant assets of his/her own, but there are other circumstances that a prenuptial agreement should be prepared. For instance, if one expects an inheritance or assets from a family trust or if there is a family business or if one or both parties have children from a prior relationship.
WILL A PRENUPTIAL AGREEMENT DECIDE EVERYTHING IF THE MARRIAGE ENDS IN DIVORCE?
Although it provides certainty as to what happens to assets in the event of divorce or death, a prenuptial agreement does not dictate all aspects of a divorce, including child custody. A judge will decide what is in the best interest of any children.
CAN WE PREPARE A PRENUPTIAL AGREEMENT WITHOUT AN ATTORNEY?
A prenuptial agreement has some formalities. Most importantly, both parties must disclose all of their assets and debt. The prenuptial agreement will address many issues and should coincide with your estate plan. There is no law in Michigan requiring both parties to the agreement to have attorneys, although there is no point in preparing a contract that will not be upheld in court and without an attorney, one may not know what to expect in the absence of the agreement.
MICHIGAN POSTNUPTIAL AGREEMENTS
Judges view prenuptial and postnuptial agreements as contracts between the parties and will uphold them. However, it is important to have a knowledgeable family law attorney to ensure they are completed and drafted properly so they will be upheld in Court. Although prenuptial agreements can be drafted and signed days before the wedding it is important to have these done in advance (typically 1 – 2 months) to make sure that each party has had the opportunity to review and have their own attorney review the agreement for them if they want. This way there is less likelihood that the Court could rule that the contract was signed under duress. Likewise, postnuptial agreements can be made and upheld in Court. However, enforceability depends on when a postnuptial agreement is agreed to, whether it is made to strengthen the marriage and not promote divorce, and whether it is equitable.
WHAT IS A POSTNUPTIAL AGREEMENT?
A postnuptial agreement is a legal contract entered into by spouses after they are married. Like a prenuptial agreement, a postnuptial agreement allows a couple to establish how certain financial matters, assets, debts, and property rights will be handled. These agreements can provide clarity, protect separate property, and help spouses address financial concerns that arise during the marriage. The postnuptial must be entered into to preserve the marriage.
ARE POSTNUPTIAL AGREEMENTS ENFORCEABLE IN MICHIGAN?
Michigan courts may uphold postnuptial agreements when they are properly drafted and executed. However, unlike prenuptial agreements, postnuptial agreements receive closer scrutiny by the courts. Enforceability often depends on the circumstances under which the agreement was signed, whether each spouse entered into the agreement voluntarily, whether there was full financial disclosure, whether the agreement is fair and equitable, and whether it was intended to strengthen the marriage rather than encourage divorce.
Because every situation is unique, it is important to work with an experienced Michigan family law attorney who understands the legal requirements for preparing a valid and enforceable postnuptial agreement.
WHEN SHOULD YOU CONSIDER A POSTNUPTIAL AGREEMENT?
A postnuptial agreement may be beneficial when spouses experience significant changes after marriage, including:
- Starting or purchasing a business
- Receiving an inheritance or substantial gift
- Acquiring significant assets or property
- Blending families from previous relationships
- Addressing financial concerns or debt
- Clarifying each spouse’s financial expectations and responsibilities
A carefully drafted postnuptial agreement can help reduce uncertainty and provide both spouses with greater financial security.
WHY CHOOSE GREAT LAKES FAMILY PROBATE & ESTATES?
Our attorneys understand that every marriage and every family’s financial circumstances are different. We take the time to understand your goals and prepare prenuptial and postnuptial agreements that are tailored to your specific needs while complying with Michigan law. By carefully drafting your agreement, we strive to maximize its enforceability and provide you with confidence for the future.
SCHEDULE A CONSULTATION
If you are considering a prenuptial or postnuptial agreement, or have questions about whether one is right for your situation, contact Great Lakes Family Probate & Estates at (888) 554-5373 or submit a form below to schedule a consultation. Our attorneys can explain your options and help you prepare an agreement designed to protect your interests and your family’s future.