Prenuptial agreements, or prenups, have traditionally received the most attention among the rich and famous. However, people of a wide range of backgrounds and walks of life in Michigan and elsewhere use these agreements today. The reason for this is that these agreements can offer valuable financial protection for those going through the family law proceeding of divorce.
A prenuptial agreement is a legal document that two individuals create and sign before they walk down the aisle. In this agreement, they can spell out how they would like their assets to be handled in the event that they end up getting divorced. One of the most effective ways in which to make this type of agreement bulletproof is to be honest with one's soon-to-be spouse about matters pertaining to it.
For example, a spouse would be wise to be upfront with the other party about the assets he or she has, what he or she might have, and what is coming down the pike. For instance, a man wishing to impress his fiancée might tell her that he has a company worth $50 million. However, if they marry and end up getting divorced, she may find out that his company is not worth as much as he had said it was. This, of course, can quickly complicate the property division aspect of a divorce proceeding.
Prenuptial agreements have proven time and time again to be excellent asset protection tools for those going through the family law proceeding of divorce. However, not all of these legal documents are created equal. An attorney can put together a solid contract that will protect the client's best interests in the event of a future divorce and one that will hold up in a Michigan court if it is challenged.
Source: cnbc.com, "Here's how to bulletproof your prenuptial agreement", Scott Cohn, March 9, 2018