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Few newly engaged couples envision that their marriage could end in divorce. Statistics indicate otherwise, however. Today, approximately half of all marriages end in divorce. For that reason it may make sense for Michigan couples to consider signing prenuptial agreements to set out property division arrangements before taking the marital plunge.
After all, it’s often easier to iron out a compromise that will be fair to both parties when a relationship is still in a positive phase. A prenuptial agreement, also called a prenup, sets out how property division will occur should a couple choose to later divorce. A prenup will set out terms for how assets will be divided, as well as how future earnings will be treated and who will control property once the marriage is dissolved.
Many people think that prenuptial agreements only make sense if one or both spouses have substantial assets, children from a prior marriage or have gotten burned in a prior divorce. However, prenuptial agreements can also make sense for couples who need to protect things like succession in a family business or family trusts that may be in place. They can also simply help preserve some semblance of civility if the decision to file for divorce ever comes to be made.
One licensed psychotherapist points out that couples should know as much about each other’s money before they get married as possible. Prenuptial agreements help make this process easier because each spouse needs to disclose all of their assets ahead of time or face potential claims of fraud later.
While it can be tough to think about divorce during a time when a relationship is at the “I do” stage, it can often make property division easier later on. Michigan couples considering getting married may want to consult an attorney to look into the logistics of negotiating a prenuptial agreement before walking down the aisle.
Source: Fox Business, “Decision Points: Should You Sign a Prenuptial Agreement?,” July 12, 2012