Many couples choose to negotiate a prenuptial agreement to resolve their financial relationship before getting married, as having an agreement can help foster marital harmony.
However, if you and your spouse did not negotiate a prenup before your marriage, you haven’t missed out on an opportunity to agree on the details of your financial relationship.
Married couples in Elk Rapids can negotiate postnuptial agreements, which serve the same purpose as prenups, except that couples negotiate postnuptial agreements after getting married. However, creating a postnuptial agreement can involve unique considerations that differ from negotiating prenuptial agreements.
This is where you can benefit from having experienced legal counsel to develop a comprehensive, enforceable agreement that serves your needs and goals.
At Alward Fisher, we’re proud to provide professional legal representation with a personal touch. Our team of attorneys has over 100 years of combined legal experience, giving us the knowledge and insights to help you develop practical legal solutions tailored to your concerns, goals, and circumstances.
Contact us today for an initial case evaluation with a postnuptial agreement attorney to learn more about creating a postnup and the benefits it can afford both you and your spouse.
What Is a Postnuptial Agreement?
A postnuptial agreement is a contract between married spouses that describes how to divide the couple’s financial and property interests should they separate or divorce.
Postnuptial agreements serve the same purpose as a prenuptial agreement. A postnuptial agreement can enforce a resolution of financial issues, such as property division or alimony/spousal support, should the couple later get divorced.
In a divorce case, the court can incorporate terms of the parties’ postnuptial agreement into the divorce judgment should the court find the agreement enforceable.
Key Differences Between a Postnup and Prenup
Postnuptial and prenuptial agreements have a few key differences under Michigan law. Most importantly, couples negotiate prenuptial agreements before getting married. When a couple negotiates a similar agreement after getting married, it becomes a postnuptial agreement.
Another difference between prenuptial and postnuptial agreements is the level of scrutiny imposed on each agreement by a court asked to enforce the agreement. Both agreements require spouses to have freely, knowingly, and intelligently entered the agreement after full financial disclosure by each spouse.
However, courts will also examine postnuptial agreements to see whether a couple has negotiated the agreement in contemplation of divorce. Courts may refuse to enforce postnuptial agreements designed to facilitate divorce rather than to maintain the harmony of the marriage.
Why Consider a Postnuptial Agreement in Elk Rapids?
There are several reasons a couple may decide to create a postnuptial agreement, chief among them that it provides a level of clarity about what happens to marital assets in the event of a divorce. Couples may also want to negotiate postnuptial agreements to amend their prenuptial agreements for similar reasons.
For example, a couple may want a postnuptial agreement due to changes in one or both spouses’ financial circumstances, such as a spouse starting a highly successful business or coming into possession of a significant amount of money through vested stock options or lottery winnings.
A postnuptial agreement can protect a couple’s financial interests as they change over time throughout their marriage.
It’s important to note that matters like child custody and child support cannot be set with a postnuptial agreement, since those are matters decided by the courts depending on what is in the child’s best interest.
Legal Requirements for Postnuptial Agreements in Michigan
In Michigan, a court may enforce a postnuptial agreement that meets specific requirements. Postnuptial agreement requirements include:
- The couple must have put their agreement in a written document that they have both signed
- Each spouse must sign the agreement voluntarily, without any coercion or undue influence
- Both spouses must make complete financial disclosures to each other
- Both spouses must understand the agreement’s terms and have an opportunity to consult legal counsel to understand the agreement
- The agreement must treat both spouses fairly and reasonably
- A couple must not have negotiated the agreement while contemplating a divorce
If a court finds that an agreement does not meet all these requirements, the couple that drafted it may be left without the protections they believed they had negotiated.
Common Pitfalls That Make Postnuptial Agreements Fail
A Michigan court may refuse to enforce a postnuptial agreement if it finds that:
- One spouse obtained the other spouse’s assent to the agreement through coercion or undue influence
- A spouse failed to make a full financial disclosure
- A spouse concealed assets in hidden bank accounts, shell corporations, or offshore trusts
- A spouse signed the agreement without having the opportunity to seek legal counsel
- One or both spouses signed the agreement while contemplating divorce
Postnuptial agreements may also fail to serve the purposes that a couple had for their agreement due to issues such as:
- Failure to address significant assets, such as a business or equity compensation
- Changes to the couple’s respective financial circumstances (e.g., spouses switch “breadwinner” and “housemaker” roles)
- Changes in domestic relations or tax laws that occurred after the drafting of the postnuptial
Why Hire a Postnuptial Agreement Lawyer?
An experienced Elk Rapids family law attorney can help you develop a postnuptial agreement that courts will enforce and that serves your and your spouse’s objectives.
Moreover, having an independent advisor separate from your spouse’s can also help you protect your financial and legal interests through a postnuptial agreement. They can:
- Discuss your needs, concerns, and objectives to develop a tailored approach to negotiations
- Explain your legal options for structuring a postnuptial agreement
- Help you gather your financial disclosures and review your spouse’s financial disclosures
- Negotiate with your spouse or their legal counsel to develop mutually agreeable solutions to your outstanding financial issues
- Draft a postnuptial agreement that addresses all the financial and legal issues you and your spouse may have
Talk to Our Elk Rapids Postnup Attorneys Today
If you and your spouse are considering creating an agreement to resolve your financial concerns in the event of a future divorce, you should consider drafting a postnuptial agreement.
Contact Alward Fisher today for a confidential consultation with a postnuptial agreement attorney to learn more about these family law matters and how they can help you protect your interests and peace of mind.