October 30, 2020

What Is a Prenuptial Agreement and Do I Need One?

Contrary to what many Michigan residents may think, a prenuptial agreement is not about staking a claim over one’s assets and it is also not about dooming a marriage even before it begins. As people grow older, they change and their circumstances change. As a result, couples grow apart and might not want to remain married to someone who no longer fits into their vision. In fact, a prenuptial agreement should be considered a contract upon which couples can build the foundation of their marriage. if approached properly, it can pave the way for open and honest dialogue before a couple gets married.

What is a prenuptial agreement?

A couple enters into this agreement before getting married. Essentially, the couple looks at their individual property and decides what will remain separate in case they get divorced. Couples can also decide what will become marital assets, therefore open to getting split between the two. Property division during a divorce can be complex and emotionally draining, and a prenuptial can remove some of the uncertainty attached to the process.

Why do I need a prenuptial agreement?

While couples with substantial wealth can definitely benefit from a prenuptial agreement, it is not solely for them. Anyone with a family inheritance, a business, a startup, children from a previous marriage or substantial debt might want to enter into a prenuptial agreement. It can be used to protect family heirlooms, collections or anything with sentimental value. Lastly, it can include future potential wealth as well.

A prenuptial agreement outlining each party’s obligations to one another is often more fair than property division agreements when a couple is breaking up. Its important to start the conversation early and be transparent with one another about one’s financial state. Pressuring someone into entering one or providing incomplete information can lead to invalidating the prenuptial agreement. Irrespective of whether it is a high asset divorce or not, a prenuptial agreement can protect a Michigan resident’s assets and liabilities in the event of a divorce.