Divorce, unfortunately, can be traumatizing from an emotional standpoint. However, losing one’s most valued assets to a soon-to-be-ex as a result of a property division conflict in a divorce may be like adding salt to the wound. One way a person in Michigan can protect himself or herself financially in a divorce is to create a postnuptial agreement before the divorce ever happens.
Postnuptial agreements, which are entered into after two individuals have gotten married, offer multiple benefits. They can spell out ahead of time how assets between two married people will be divided if the two decide to dissolve the marriage, thus potentially helping to minimize conflict during divorce. These legal contracts are particularly helpful for those who are in their second or even their third marriages and have kids from previous marriages, as they might want to make sure some of the assets end up in the children’s hands.
A postnuptial agreement is also indicated if one party is not faithful and the other person wishes to motivate him or her to work on their union. Signing an agreement with terms that are favorable to one’s spouse may demonstrate one’s seriousness about wishing to remain married. It is also wise for those who decide to be stay-at-home parents and give up their careers to watch the children; if they get divorced, a comprehensive postnuptial agreement can ensure that they will remain financially secure.
Postnuptial agreements can save trouble as well as cost during a divorce. It is particularly recommended for those who co-own businesses with their spouses or have large assets. Even if a couple ends up divorcing without such an agreement in Michigan, they can still try to resolve their property division and asset distribution issues at the negotiation table, thus avoiding further court intrusion.
Source: ABC News, “Forget the Prenup: Why You May Need a Postnuptial Agreement“, A.J. Smith, Feb. 16, 2015