Postnuptial Agreement Attorneys in Traverse City

After you get married, you and your spouse may decide you want the peace of mind that comes from understanding your respective rights and obligations regarding your finances.

Negotiating a postnuptial agreement can offer you and your spouse the clarity you want and bolster the harmony of your marriage.

Contact Alward Fisher for an initial case evaluation with a postnuptial agreement attorney.

We’ll help you discover the benefits of these agreements so you can decide whether you and your spouse should form one to help facilitate continued harmony and success in your marriage.

What Is a Postnuptial Agreement?

So, what is the meaning of a postnuptial agreement?

It allows the married couple to determine their separate financial interests — including identifying separate property, deciding their respective shares of marital property, and spouses’ rights to financial support — in the event of divorce.

As a legal contract, a postnuptial agreement can outline the terms of a monetary settlement for a married couple in the event of a divorce.

Under Michigan law, postnuptial agreements can cover issues such as the following:

• Division of marital real estate
• Division of business ownership interests
• Division of investment or retirement accounts
• Division or distribution of life insurance benefits
• Inheritance rights of children from previous relationships
• Potential alimony/spousal support obligations in the event of separation or divorce

Postnuptial Agreement vs. Prenup

Prenuptial and postnuptial agreements serve the same purposes, except that a couple enters a prenuptial agreement before getting married, and a couple that negotiates an agreement after getting married forms a postnuptial agreement.

Postnuptial Agreement Requirements in Michigan

Courts in Michigan will enforce postnuptial agreements that meet specific criteria. Postnuptial agreement requirements include the following:

• The couple must put their agreement in writing.
• The agreement treats both spouses fairly.
• Both spouses must provide full and fair disclosure of their financial matters to each other.
• Each spouse must enter the agreement voluntarily, knowingly, and intelligently.
• Each spouse must have had the opportunity to seek independent counsel.
• Spouses may not sign an agreement under fraud, mistake, duress, coercion, or undue influence.

Creating a Postnuptial Agreement to Strengthen Your Marriage

Finally, Michigan courts must determine that a couple has not entered into their postnuptial agreement with the intention of divorcing.

Courts typically decline to enforce postnuptial agreements that encourage couples to get divorced.

Instead, a couple must create a postnuptial agreement with the intention of promoting the continued harmony of the marriage by resolving financial issues.

Benefits of a Postnuptial Agreement for Traverse City Couples

Couples negotiate postnuptial agreements to obtain various benefits, such as the following:

• Protecting assets that each spouse has worked hard to build, such as business interests
• Protecting oneself from one’s spouse’s debts
• Preserving family heirlooms to pass on to children from prior relationships
• Providing for children from past relationships if one gets divorced or passes away during their new marriage
• Mitigating uncertainty in a possible future divorce
• Protecting one’s financial interests if they have different priorities or sensibilities regarding money than their spouse

When Should You Consider a Postnuptial Agreement?

You might consider negotiating a postnuptial agreement in Michigan if you and your spouse intended to create a prenuptial agreement before getting married, but failed or forgot to do so before your marriage.

In many cases, couples will create postnuptial agreements when their financial circumstances change during their marriage.

An example is when one or both spouses acquire substantial assets, which can change a couple’s assessment of their need for a postnuptial agreement to promote marital harmony.

Finally, a couple may need a postnuptial agreement to amend the terms of a prenuptial agreement they negotiated before marriage, including when their economic circumstances have changed.

Common Financial Changes That Might Prompt a Postnuptial Agreement

Examples of changed financial circumstances that may motivate you and your spouse to negotiate a postnuptial agreement include the following:

• You or your spouse has purchased one or more large assets since getting married, such as a primary residence, vacation home, or income property.
• You or your spouse has started a new business since getting married.
• You or your spouse has received a large inheritance.
• Your spouse has incurred substantial debt.
• Your child support obligations from a previous relationship have changed.

How a Postnuptial Agreement Is Legally Created in Michigan

A couple can create a legally enforceable postnuptial agreement in Michigan by making complete disclosures of their assets, income, and debts to one another.

They then put their agreement into writing, with each spouse having the opportunity to consider the agreement’s terms and seek legal counsel if they wish.

How Michigan Courts Handle Postnuptial Agreements

Michigan courts may disfavor postnuptial agreements that do not hold up to legal scrutiny, especially when judges find that spouses created the agreements while contemplating the possibility of divorce.

State courts tend to view postnuptial agreements as disrupting or hostile to marital harmony, as they may encourage couples to go through divorce proceedings rather than work to preserve their marriage.

However, a Michigan court may enforce a postnuptial agreement when it meets the requirements and the court determines that the couple created the agreement to promote the harmony of their marriage.

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