December 24, 2019

How to Negotiate a Prenuptial Agreement

A prenuptial agreement can be a good idea for some Michigan couples. It can protect them in case they divorce and make the process of property division less difficult. However, it is important that both parties are involved in creating the prenup and that it does not leave either of them at a significant disadvantage. For one woman who was given a cohabitation agreement before moving in with her boyfriend, this was not the case.

The man’s attorney drew up the agreement, and he then gave it to his girlfriend. The man had purchased a home with the help of his mother, and he wanted to protect that in case they married and then divorced. However, his provision that she would not be entitled to any financial compensation no matter how much money she put into the home did not seem fair to her. The agreement also said that if they married and divorced, spousal support laws would not apply.

When creating a prenup, each person should have an attorney. The couple should have a conversation about finances and their concerns. In this case, giving the woman a certain amount of equity in the home for each year of marriage may have been reasonable. A prenup can also have a sunset clause that invalidates it after a certain number of years.

Couples who do not have a prenuptial agreement will need to negotiate property division, and even if there is a prenup, a decision must be reached about child custody and support as well. Any issues pertaining the children cannot be included in a prenup. Couples do not have to go to court about any of these issues unless they are unable to reach an agreement. If that happens, they may have to enter litigation where a judge will decide.