When you are planning for a wedding and will soon be getting married, you might be considering the possibility of a prenuptial agreement. Prenuptial agreements—sometimes known as premarital agreements or antenuptial agreements in Michigan—used to have a reputation as contracts that only wealthy people created. However, it is a misconception that prenuptial agreements are only for wealthy individuals who are getting married. In fact, according to research from the American Academy of Matrimonial Lawyers (AAML) reported in Business Insider, recent years have shown a 62% increase in parties entering into prenuptial agreements. In large part, the rise in prenups seems to be driven by people in the millennial generation, which includes people born between 1981-1996. Yet regardless of your age, a prenuptial agreement is likely a good idea.
To be sure, prenuptial agreements can be beneficial for any marriage. These contracts allow spouses to reach agreements about particular financial issues before they get married and avoid substantial disputes over money and assets in the event of a divorce. Our Michigan prenuptial agreement lawyers want to tell you more about the benefits of a prenuptial agreement.
Why a Prenuptial Agreement Can be Beneficial to You
Although prenuptial agreements can be extremely important—and indeed essential—for wealthy individuals who are getting married, they can be almost as beneficial for everyone else regardless of wealth or assets. The following are some key benefits of prenups (or antenuptial agreements) in Michigan:
- Outline financial rights and obligations during and after the marriage: One of the primary benefits of a prenuptial agreement is that it allows parties to outline or clarify their financial rights and obligations during the marriage, as well as in the event of divorce. For example, parties can reach an agreement about how marital assets will be managed during their marriage, and who will be responsible for handling certain financial issues in the event of a separation and divorce.
- Divide marital property: Michigan is an equitable distribution state, which means marital assets will be divided between spouses in a divorce according to the rule of equitable distribution. However, you can reach an agreement in advance with your spouse about how all marital property will be divided, including assets and debts.
- Ensure that certain property remains separate: You can clarify that specific property will remain “separate” and will not be subject to distribution in the event of a divorce.
- Protect yourself from debt: If your spouse is entering into the marriage with significant debt, or if there are reasons your spouse may accrue additional debt during the marriage that would otherwise be classified as marital property (such as student loan debt), you can protect yourself from that debt with a prenuptial agreement.
- Consider spousal maintenance: Prenuptial agreements allow parties to set terms for spousal maintenance, and often allow one spouse to waive his or her rights to support in a prenup.
- Prevent a contentious divorce: If your marriage does end in divorce, you can avoid a contentious divorce case by planning ahead for potential disputes in your premarital agreement.
Contact a Michigan Prenuptial Agreement Attorney
Do you have questions about whether a premarital agreement is right for you? Our Michigan prenuptial agreement attorneys can help. Contact the Law Offices of Michael A. Robbins for more information.