Many couples are reluctant to enter a prenuptial agreement because they believe that by entering such an agreement, they are essentially planning for divorce. However, with approximately 50 percent of married couples in the United States divorcing, it can be beneficial to plan for the possibility of your marriage ending, even if you think yours never will.
What is included in a prenup?
Prenuptial agreements are agreements entered into before the marriage that are intended to address various issues that may arise in a divorce. These agreements may cover:
- Property division
- Retirement accounts
- Premarital debts
- Inheritances received during the marriage
- Life insurance
Generally, child support and child custody issues cannot be addressed in these agreements, as they need to be addressed at the time of the divorce, not in advance.
Prenups make property division easier
Michigan courts follow the laws of equitable distribution when dividing property in a divorce. This means they will have to determine which assets are marital property, value all marital assets, and then distribute them ‘fairly and equitably’ based on a multitude of factors. A prenuptial agreement can make the property division process much more efficient, as it can clearly specify which spouse gets which assets.
How can I ensure my prenup is enforceable?
Just having a prenup is not enough. It is also important that the agreement is enforceable in court. For your prenup to hold up in court, it must be in writing, signed by both parties, fair, executed voluntarily, and entered into in good faith. A family law attorney can ensure that all the necessary criteria is met and that your agreement is valid in the state of Michigan.