While a second marriage can bring excitement and happiness, it can also create challenges. These often involve children from past relationships, retirement benefits, personal assets or existing businesses. A prenuptial agreement can explain how a couple intends to address property and other money matters if the marriage ends in divorce or, in some cases, death.
Avoiding financial disputes in a second marriage
Michigan uses equitable distribution laws. The court divides marital property and debts fairly, but not always equally. Couples often disagree about property they owned before the marriage. They may disagree about whether to divide a home, businesses or investments.
Prenuptial agreements solve complicated financial disputes in second marriages by:
- Protecting inheritance: States how the couple will handle property and money if the marriage ends. It also helps ensure that the family assets pass to the children from past relationships instead of to the new partner. Without a prenup, your new spouse may inherit your wealth instead of your children.
- Preserving separate property: Lets each spouse keep their property, investments and retirement savings they owned before marriage.
- Managing debts: Explains who will pay existing loans and handle other debts.
A Michigan court may review a prenup during a divorce or after a spouse’s death. A prenup cannot decide future child support, child custody or parenting time. The best interests of the child are the most important factor in making this decision. The court usually enforces an agreement if both spouses signed voluntarily and shared complete financial information. If either party hides important information, the court may reject the agreement.
Protect your assets through a prenup
A prenuptial agreement can provide clarity and security for couples starting a second marriage. It protects property, provides for children from previous relationships and reduces the risk of legal disputes later on. Be sure to prepare the agreement well before the wedding. Both spouses should share complete financial information before signing it.