Traverse City, Michigan Family Lawyer Jeanne Hannah

Jeanne Hannah is experienced in drafting complete and complex prenuptial, postnuptial, and cohabitation agreements. These agreements are recognized in Michigan and public policy allows the enforcement of them. An agreement must be in writing and signed by both parties. An agreement may address issues related to both death of one of the parties or divorce. The divorce provisions may address property division, debts and spousal support. Custody and child support issues may not be determined in a prenuptial agreement. The parties may also provide in the agreement how they will handle their finances during the marriage or cohabitation relationship. 

Agreements between spouses or cohabiting adults are not simply for the "rich and famous." There are many reasons why people would enter into such agreements. Frequently, both parties entering into their second marriages will want a prenuptial agreement, particularly if one or both parties have children from a prior marriage. These people may want to protect their children's financial interests in the event of their death. Furthermore, one or both the parties may be bringing separate property into the marriage that they also want to protect.

Prenuptial and cohabitation agreements are also a good idea when there is a large disparity in the ages and/or financial status of the parties. The person with few assets will want to ensure that after the marriage or end of a cohabitation relationship, he or she is not left with nothing. Likewise, the person with substantial assets may want to protect those assets to the extent possible.

Each party to the prenuptial agreement must be represented by counsel. The agreement will be enforceable in Michigan if    

the parties entered into the agreement freely, without fraud, duress or mistake, or misrepresentation or nondisclosure of material fact;

the agreement was not unconscionable when executed;

there aren’t facts and circumstances that have changed since the agreement was executed that would make its enforcement unfair and unreasonable.

It is important that these agreements establish that the parties had full knowledge and understanding of the nature, value and extent of the other party’s property. It’s also important that each party understand that the fairness issue isn’t an easy avenue to future invalidation of these agreements. This is perhaps one of the most complicated issues involved, and thus it’s wise to consult with an attorney when entering into such an agreement. In fact, to avoid a potential for invalidation, it’s important to establish that both parties to a premarital agreement have had a meaningful opportunity to consult counsel.

It’s not a good idea to leave the issue of premarital agreements or cohabitation agreements to the last minute. Nothing will impact more harshly upon the beginning of a relationship than actions making it seem as though money is more important than live. The terms of a prenuptial agreement should be negotiated so that it is fair to both parties and will likely withstand subsequent scrutiny in the courts. This requires skilled and highly experienced counsel. 

You will find detailed information on the negotiation and enforceability of prenups and postnups on Jeanne M. Hannah's Blog Updates in Michigan Family Law. Archives to those articles may be found here.