A prenuptial agreement is a legal contract that couples sign before marriage. It outlines how they will handle property, debt, and financial matters if they divorce. In Michigan, the law recognizes prenuptial agreements as long as both spouses sign voluntarily and the terms are fair.
Many people think prenuptial agreements are only for wealthy couples, but they can benefit anyone. A prenup can help both spouses protect their financial future by deciding these issues in advance. It can also reduce stress and legal battles in the event of divorce. Michigan law does not allow a prenup to include anything illegal or anything that encourages divorce.
Who Should Consider A Prenuptial Agreement?
Any couple that wants to protect their financial future should consider a prenuptial agreement. A prenup can be useful if one or both spouses have significant assets, debts, or children from a prior relationship. Couples with businesses, retirement accounts, or expected inheritances can also benefit. If one spouse plans to leave the workforce to raise children, a prenup can ensure they receive financial support. A lawyer can review the agreement to ensure it reflects the couple’s wishes and meets legal requirements.
What To Include In A Michigan Prenuptial Agreement
A well-drafted prenuptial agreement in Michigan can outline how a couple will handle property, assets, and other financial concerns if they divorce. Michigan law allows couples to include many types of provisions in a prenup as long as the terms are fair and do not violate public policy. These include:
- Division of Property: A prenuptial agreement should state how the couple will divide their assets if they divorce. It can specify which property will remain separate and which will be considered marital property. Clear terms can prevent disputes over real estate, bank accounts, and more.
- Business Ownership: A spouse who owns a business might want to protect it from division in a divorce. A prenuptial agreement can state that the business remains separate property. It can also clarify whether the other spouse has any rights to business income or future profits.
- Retirement Accounts: Couples can decide whether to divide their retirement accounts or keep them separate. The prenup should list each account and explain how to handle any contributions made during the marriage to prevent conflicts over pensions, 401(k)s, or IRAs.
- Alimony Terms: A prenuptial agreement can state whether one spouse will pay alimony in the event of divorce. It can also set the amount and duration of payments. Courts may refuse to enforce unfair alimony terms, so both spouses should agree to reasonable terms.
- Management of Finances During Marriage: A prenup can outline how the couple will handle money while married. It can explain whether they will keep separate bank accounts or combine their finances. It can also address how they will pay for household expenses and debts.
- Life Insurance Provisions: A prenuptial agreement can state whether one spouse must keep a life insurance policy for the benefit of the other. It can also require that the policy remain active for a certain number of years or until specific conditions are met.
- Inheritance Rights for Children from Prior Relationships: A spouse with children from a previous relationship might want to protect their inheritance. A prenup can confirm that certain assets will go to those children, so each spouse’s estate plan follows their wishes.
- Property Rights If One Spouse Dies: A prenuptial agreement can explain what happens to a spouse’s property if they die during the marriage. It can state whether the surviving spouse inherits specific assets or whether those assets will go to other family members.
Limitations Of Prenuptial Agreements In Michigan
Michigan law does not allow prenuptial agreements to decide child custody or child support. Courts determine these issues based on the child’s best interests at the time of separation. Parents cannot agree on a specific child support amount in advance because Michigan law bases child support on income and financial circumstances at the time of separation. If a prenup includes terms about child support or custody, a court will ignore those provisions. Prenuptial agreements also cannot contain anything that violates state law or encourages divorce. A judge may refuse to enforce an agreement if it includes terms that are unfair or illegal.
How To Ensure Your Prenuptial Agreement Is Enforceable
Michigan courts enforce prenuptial agreements only if they meet specific legal standards. Both spouses must sign the agreement voluntarily. Neither spouse can use threats or pressure to force the other to sign. Each spouse must fully disclose their financial situation, including assets, debts, and income. A court may reject a prenup if one spouse withheld financial information before signing. The terms must be fair and reasonable at the time of signing and at the time of enforcement. Spouses should put the agreement in writing and sign it before the wedding. A lawyer can review the document to ensure it follows Michigan law.
Consult A Michigan Family Law Attorney
If you are considering a prenuptial agreement, Lisa Stern can help you explore your options and protect your interests. She has years of experience in Michigan family law and can draft an agreement that meets all relevant legal requirements. She can also review an existing prenup and explain how it could affect you. Contact Lisa Stern today at (248) 335-5000 to arrange an initial consultation.