When you first get engaged, your thoughts and feelings will likely be overwhelmingly positive. You’re excited about getting married, celebrating with your friends and family, and embarking on a long life together. You’re likely not considering the possibility of the marriage ending in divorce or the need for a prenuptial agreement.
The fact is that Michigan recorded 20,812 divorces in a single recent year. While the statewide divorce rate has declined substantially from its peak in the 1980s, many families go through the divorce process each year and discover firsthand how complicated and stressful it can be. Although it’s never an easy process, some couples weigh the pros and cons of a prenuptial agreement and decide having one can help them avoid a contentious process in the event of a divorce.
Contact the law firm of Alward Fisher to learn more about prenup pros and cons and discuss your situation in a free consultation.
What Is a Prenup?
A prenuptial agreement (prenup) or premarital agreement is a legal document outlining a plan for dividing a couple’s property, assets, and debts if the couple later divorces. The couple enters into the agreement with help from their respective attorneys when both spouses-to-be are at their best — they’re communicating effectively, thinking clearly, and looking toward the future. These conditions are typically much more challenging to achieve during a divorce when a couple is no longer on the same page.
The goal of a prenup is to provide a fair and equitable solution to the problem of dealing with financial matters and associated challenges during divorce proceedings. It removes uncertainty from what can be a contentious process by making the plans clear to both future spouses.
Although prenups have often been associated with very wealthy couples, such as celebrities, couples on varying rungs of the economic ladder find they appreciate the protection and peace of mind a prenup can offer as they enter into marriage.
What Can Be Included in a Prenuptial Agreement?
A prenup can include provisions for certain assets, debts, and other matters of concern as you consider the possibility of future divorce. These include provisions for:
- Each party’s assets that predate the marriage
- Each party’s debt obligations that predate the marriage
- Property the parties wish to remain separate
- Family property and future assets
- Business interests held by either party
- Financial responsibilities to be assumed by each party during the marriage
- Ownership of any pets either party brings to the marriage
- Spousal support in the event of divorce
- How assets will be handled in the event of one party’s death during the marriage
- The protection and security of children from previous relationships
It’s important to note that prenuptial agreements cannot include provisions for child custody and child support.
Understanding what a prenup can and cannot include can help you determine whether pursuing one is right for your situation. It’s also important to know the main prenuptial agreement pros and cons.
Pros of a Prenup Agreement
Prenups offer many benefits that may come as a surprise if your familiarity with them doesn’t go much deeper than celebrity divorce stories. Some of the biggest pros of prenups are that they:
- Protect both parties’ wealth and property
- Protect both parties against responsibility for each other’s debt
- Define what constitutes marital property
- Make divorce and other legal proceedings more straightforward and often less expensive
- Open up lines of communication before the marriage
- Protect children from previous relationships
Worries about assets, certain debts, finances, children, and property are not unique to the wealthy. Any couple can have these concerns. Creating a prenuptial agreement can help assuage these worries by clearly outlining your joint wishes for what will happen if the marriage ends. It can help you enter your marriage clear-eyed and with a strong feeling of mutual understanding and partnership.
Cons of a Prenup Agreement
Probably the biggest drawback of a prenuptial agreement is simply that it can be a sensitive topic. You may worry about how your future spouse will react to your even broaching the subject, much less suggesting writing up a prenuptial agreement.
Even if you and your future spouse agree on the usefulness of a prenup and both feel like you should have one, it can still be awkward to discuss it with family and friends. People’s feelings about prenups may not even be based on firsthand knowledge and experience. Regardless, if you worry about bringing up a prenuptial agreement with your loved ones, you should seriously consider whether entering into one is the right decision for you and your future spouse.
The other potential con of prenups is that they’re not always enforceable. However, that problem can be avoided by working with a knowledgeable pre-nuptial agreement attorney.
Should I Draft a Prenuptial Agreement Without an Attorney?
Premarital agreements are legal documents. They are complex, and it’s essential to get all the legal details right when dealing with a legally binding contract that has significant financial implications. Our Michigan prenuptial agreement attorneys can help ensure that your prenup is legally sound and enforceable, as well as look out for your best interest.
For a prenup to be legally enforceable, it must meet several requirements:
- The terms of the agreement must be fair, equitable, and reasonable
- Both parties must fully disclose their finances, assets, and debts
- The agreement must be signed voluntarily and openly
- Both parties must be capable of understanding the agreement
Each party should have its own family law attorney to prevent conflicts of interest and ensure the agreement is fair and equitable. Our attorneys are available to answer your questions and help you understand the various considerations you should account for in a well-drafted prenuptial agreement.
Contact an Experienced Traverse City Prenuptial Agreement Lawyer Now
Although entering into a prenuptial agreement may not seem like the most romantic gesture as you prepare to get married, having one can help you enter your marriage with clarity regarding what happens if you later divorce.
If you’re interested in learning more about Michigan prenups and how they can protect you and your future spouse, contact an experienced attorney at Alward Fisher today to arrange a free consultation to discuss your options.