If you’re planning to get married in Traverse City, a prenuptial agreement may not be the first thing you think about. It can be a sensitive topic to discuss during a time when you’re planning for a long future together. However, a prenup can give you peace of mind and eliminate unnecessary tension as you plan for your big day. The knowledgeable Traverse City prenuptial agreement lawyers of Alward Fisher can help guide you through this delicate legal matter as you prepare to launch your lives together.
Contact us today to discuss the specifics of your situation and get answers about creating a prenuptial agreement.
What Is a Prenuptial Agreement?
An antenuptial or prenuptial agreement, commonly referred to as a “prenup,” is a special type of legal arrangement between two individuals who intend to marry. When prospective spouses develop a prenuptial agreement, they must formally agree on the ways certain issues will be resolved in the event of a divorce or separation. These issues typically include common sources of financial strife, such as spousal support and the division of assets or debts.
In the past, prenuptial agreements were almost exclusively used by the extremely wealthy. Today, they are growing in popularity among intended spouses of all income brackets and genders. Prenups help to reduce or eliminate disagreement and uncertainty in unfortunate situations by establishing clear procedures and resolutions well in advance.
Who Should Get a Prenup?
Any couple planning to marry should consider getting a prenup to prepare for any eventuality while they are both clear-headed and communicating well. Even if you and your spouse-to-be do not currently have significant wealth or assets, a prenuptial agreement can give you the certainty of knowing what will happen to your future marital estate if you ever decide to part ways.
Prospective spouses commonly establish prenuptial agreements to keep certain assets separate from the marital estate or to predetermine how to divide future marital assets or debts. If one partner has a child from a previous relationship, they can add terms to their prenup to protect the child’s inheritance.
In some cases, couples may want to decide in advance that one spouse will work inside the home while the other spouse works outside the home and provides alimony in the event of a divorce. Prenuptial agreements can also be useful when one or both spouses own a business that they want to keep separate and intact if they ever divorce.
What Can a Prenuptial Agreement Cover in Michigan?
A Michigan prenuptial agreement can cover almost anything a couple wants, except for illegal activities, preemptive child support or custody decisions, or anything that could provide a financial incentive that encourages divorce.
Many prenuptial agreements cover issues that frequently come up in divorce proceedings, such as:
- How property, assets, business interests, and financial accounts will be divided
- Whether each partner will keep their retirement accounts separate or divide the accounts upon divorce
- Each spouse’s respective rights to manage marital assets during the marriage
- Whether a particular spouse will agree to pay alimony to the other
- The amount and duration of any predetermined alimony payments
- How the proceeds from any life insurance policies will be divided
- The protection of any child support from previous relationships or inheritance
- What will happen to individual and marital assets if one spouse dies while the marriage is still intact
- Whether each spouse must draft a legal will to secure the terms of the prenup
- What will happen to any business interests, ownership, or assets
How Can I Be Sure My Prenup Is Enforceable in Michigan?
Like many states, Michigan uses the standards outlined in the Uniform Prenuptial Agreement Act to determine when and how prenuptial agreements can be enforced. Michigan prenups are enforceable as long as:
- The terms of the agreement are equitable, reasonable, and fair. If a couple’s circumstances change enough that the terms of the prenup would be excessively unfair or unreasonable to either spouse, judges may decline to enforce it. For example, if one spouse loses their ability to work, a judge could decide to override any terms in the prenup that determine alimony.
- Both parties signed the prenup voluntarily, free from fraud or duress. Both spouses must voluntarily sign the prenup and any written amendments to ensure that the included terms are enforceable. If one spouse uses fraud, deceit, threats, or force to coerce the other to sign, the courts will likely invalidate the agreement. However, one spouse’s refusal to marry the other without a prenup is not reason enough for invalidation.
- Both parties were mentally capable of understanding and agreeing to the prenup. A judge may refuse to enforce an agreement if one or both spouses were intoxicated, mentally ill, or otherwise mentally incapable of agreeing when they reviewed or signed the prenup.
- Both parties fully disclosed their respective assets. Courts are less inclined to enforce prenuptial agreements if either spouse neglects to fully disclose their finances to the other before signing. Generally speaking, spouses should seek help from professional accountants when they prepare financial statements for the agreement.
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At Alward Fisher, we provide more than savvy legal representation. We provide peace of mind. Peace of mind for your business. Peace of mind for your family. And the peace of mind for your future. No matter what types of legal challenges you are facing, we can help you find solutions.
Pros and Cons of a Prenuptial Agreement
Prenuptial agreements have many benefits, but they’re not for everyone. The following pros and cons can help you determine whether a prenup may be right for you:
- Pro – Discussing a prenup early on can encourage honesty and communication regarding debts and assets, reducing the likelihood of surprises later.
- Con – Discussing a prenuptial agreement can also feel uncomfortable. Many people think of prenups as transactional and unromantic.
- Pro – A prenup can save you time and money by reducing your potential legal fees and number of court appearances in the event of a divorce.
- Con – If Michigan’s existing property division guidelines match your preferences, a prenup may be unnecessary.
- Pro – A prenup can allow you to protect your individual and family property, such as personal business interests, family heirlooms, and inheritance rights.
- Con – The prenup may be unfair if it contains errors or confusing language. It also may be unfair if either spouse agreed to terms that were not in their best interests during the relationship’s “honeymoon” phase or if circumstances change significantly after signing the agreement.
- Pro – If your spouse has significantly more debt than you, a prenup can protect you from assuming their debt obligations.
Understanding Michigan Prenup Laws
To be considered valid in Michigan, prenuptial agreements must be prepared in writing and voluntarily signed by both parties. A prenup is not effective until a couple is legally married.
Michigan prenuptial agreements may not contain provisions that govern future child support or child custody arrangements. This is because child support is determined based on each spouse’s relative need and ability to pay, and custody determinations are based on each child’s best interests in the event of divorce. Parents can form agreements on these issues in the process of separating, but courts have the ultimate authority.
Michigan Prenup FAQs
Don’t hesitate to contact a Michigan prenuptial agreement lawyer if you have any questions about your circumstances. Here are answers to common questions we receive about prenups:
Prenuptial Agreements
How much does a prenup cost in Michigan?
Most couples pay an average of $1,200 to $2,400 to prepare a prenup, according to estimates in Business Insider. However, your costs may be greater if your finances are more complicated or if you reside in an area with a higher cost of living.
What percentage of couples sign prenuptial agreements?
One report from The Harvard Gazette suggests that only 5 to 10 percent of American couples sign prenuptial agreements before marriage, despite the fact that roughly 50 percent of U.S. marriages result in divorce.
Do couples need different attorneys for a prenup?
Yes. Even when both couples are in complete agreement, separate legal counsel is essential. Michigan courts will not enforce prenuptial agreements unless they follow specific guidelines, including the requirement that the agreement is fair and reasonable to both spouses. Working with a knowledgeable attorney is the best way to ensure your prenup is valid and equitable.
What is a postnuptial agreement?
A postnuptial agreement is similar to a prenup, except it is drafted and signed after a couple is already married. Although postnups address many of the same issues as prenups, they generally offer fewer protections and tend to be more difficult to enforce.
How a Traverse City Prenuptial Agreement Lawyer Can Help
If you’re considering a prenuptial agreement in Traverse City, an experienced attorney can help you by:
- Explaining your legal rights and making sure you fully understand the terms you are agreeing to before you sign the prenup
- Helping you obtain a complete picture of your spouse’s financial circumstances as well as your own
- Ensuring your prenuptial agreement documents are error-free and meet all required legal conditions
- Making sure your agreement contains language and provisions that protect your best interests and the best interests of your family
To discuss the details of your situation with a Michigan prenuptial agreement lawyer, contact Alward Fisher today.
