Skip to content

Prenuptial Agreements: A Comprehensive Guide for All Couples

Learn everything you need to know about prenuptial agreements, how they protect your assets, and why they're valuable for couples with children, young couples, blended families, and those with significant assets.

Introduction

A prenuptial agreement (commonly called a 'prenup') is a legal contract created by two people before they marry that typically outlines how assets and debts will be divided in the event of divorce or death. While often associated with wealthy individuals protecting their fortunes, prenups serve many practical purposes for couples across various life situations. This document can help clarify financial rights and responsibilities, protect family businesses, shield one spouse from the other's debts, and establish clear guidelines for property division. Whether you're entering marriage with children from previous relationships, significant assets, or simply want clarity about your financial future together, understanding prenuptial agreements is an important step in building a secure foundation for your marriage.

0/5000

Key Things to Know

  1. 1

    Prenuptial agreements must be executed well before the wedding (at least 30 days is recommended) to avoid claims of coercion or duress.

  2. 2

    Both parties must provide complete and honest financial disclosure for the agreement to be valid.

  3. 3

    Each person should have their own independent legal counsel review the agreement before signing.

  4. 4

    Prenups cannot determine child custody or child support amounts, as these must be decided based on the best interests of the child at the time of divorce.

  5. 5

    The agreement should be reviewed and potentially updated after major life events such as the birth of children, significant inheritance, or substantial changes in financial circumstances.

  6. 6

    State laws vary regarding prenuptial agreements, so it's essential to work with an attorney familiar with the laws in your jurisdiction.

  7. 7

    A well-crafted prenup promotes financial transparency and communication, which can strengthen your relationship rather than undermine it.

  8. 8

    For blended families, a prenuptial agreement should work in conjunction with your estate plan to ensure children from previous relationships are protected.

Key decisions before you file

Before you file a Prenuptial Agreement in Michigan, a few decisions shape the document: which option to choose and what each one means. The Prenuptial Agreement guide walks through them.

Open the Prenuptial Agreement guide

Customize your Prenuptial Agreement Template with DocDraft

Michigan Requirements for Prenuptial Agreement

  • Voluntary Execution (Michigan Compiled Laws § 557.28 and case law Rinvelt v. Rinvelt, 190 Mich. App. 372 (1991))

    The agreement must be entered into voluntarily by both parties without fraud, duress, or coercion. Michigan courts closely examine whether both parties freely consented to the terms.

  • Full and Fair Disclosure (Reed v. Reed, 265 Mich. App. 131 (2005))

    Both parties must provide complete and accurate disclosure of all assets, liabilities, and income. Failure to disclose material financial information may render the agreement unenforceable in Michigan.

  • Opportunity for Independent Legal Counsel (Rinvelt v. Rinvelt, 190 Mich. App. 372 (1991))

    Each party should have reasonable opportunity to consult with independent legal counsel before signing. While not absolutely required, absence of independent counsel may be a factor in determining enforceability.

  • Unconscionability Provision (Michigan Compiled Laws § 557.28 and case law Rinvelt v. Rinvelt, 190 Mich. App. 372 (1991))

    The agreement must not be unconscionable when executed or when enforcement is sought. Michigan courts may refuse to enforce provisions that are grossly unfair or one-sided.

  • Separate Property Designation (Michigan Compiled Laws § 552.19)

    Clear identification of property that will remain separate during marriage and not subject to division upon divorce, consistent with Michigan's equitable distribution principles.

  • Marital Property Designation (Michigan Compiled Laws § 552.19)

    Definition of what constitutes marital property subject to division upon divorce, including provisions for how property acquired during marriage will be classified and divided.

  • Spousal Support Provisions (Allard v. Allard, 318 Mich. App. 583 (2017))

    Terms regarding waiver or limitation of spousal support (alimony). Michigan courts may review these provisions for conscionability at the time of enforcement.

  • Child Support and Custody Limitations (Michigan Compiled Laws § 722.23)

    Recognition that provisions regarding child support, custody, or parenting time are not binding on Michigan courts, which will make determinations based on the best interests of the child.

  • Estate Planning Provisions (Michigan Compiled Laws § 700.2202)

    Terms addressing inheritance rights, including potential waivers of statutory rights such as the elective share, consistent with Michigan probate law.

  • Sunset or Durational Provisions (Michigan contract law principles and case law)

    Optional clauses specifying if the agreement expires after a certain duration of marriage or is modified based on specific triggering events, which must be clearly defined under Michigan law.

  • Choice of Law Provision (Michigan common law on conflict of laws)

    Specification that Michigan law governs the agreement, particularly important if the couple may relocate or has connections to multiple states.

  • Modification and Amendment Procedures (Michigan contract law principles)

    Clear procedures for how the agreement may be modified after marriage, requiring written consent of both parties in accordance with Michigan contract law.

  • Severability Clause (Michigan contract law principles)

    Provision stating that if any portion of the agreement is found unenforceable, the remainder continues in effect, consistent with Michigan contract principles.

  • Federal Tax Considerations (Internal Revenue Code § 1041)

    Acknowledgment of federal tax implications of property transfers and divisions, including potential capital gains consequences and applicable IRS regulations.

  • ERISA Compliance (29 U.S.C. § 1056(d)(3))

    Provisions addressing retirement accounts must comply with the Employee Retirement Income Security Act, particularly regarding qualified domestic relations orders (QDROs) and spousal rights to certain retirement benefits.

  • Debt Allocation (Michigan Compiled Laws § 552.19)

    Clear provisions for responsibility of existing and future debts, recognizing Michigan's approach to marital debt division in divorce proceedings.

  • Business Interest Protection (Berger v. Berger, 277 Mich. App. 700 (2008))

    Specific provisions protecting business interests, professional practices, or intellectual property from division in divorce, consistent with Michigan's approach to business valuation and division.

  • Financial Responsibilities During Marriage (Michigan Compiled Laws § 552.13)

    Optional provisions outlining financial responsibilities during marriage, such as joint accounts, household expenses, and savings, which must not violate Michigan's laws on spousal support obligations.

  • Execution Requirements (Michigan Compiled Laws § 566.132)

    The agreement must be in writing and signed by both parties to be enforceable under Michigan law, consistent with the Statute of Frauds requirements for contracts made in consideration of marriage.

  • Bankruptcy Considerations (11 U.S.C. § 523 and § 541)

    Recognition that certain provisions may be impacted by federal bankruptcy law, particularly regarding discharge of debts and property exemptions.

Frequently Asked Questions