Wooden judge's gavel, "Prenuptial Agreement" text, and male and female figurines on wood surface.

What Makes a Prenuptial Agreement Valid in Michigan?

Talking about a prenuptial agreement may not be the most romantic part of planning a wedding. However, for many couples, this is a very important financial conversation. This document can protect your finances and your future.

If you are considering a prenup or have questions about an existing agreement, here is what makes a prenuptial agreement valid in Michigan. 

What Is a Prenuptial Agreement?

Under Michigan law, a contract about property made by two people before marriage can remain valid after the marriage takes place. A prenuptial agreement outlines how certain financial issues, such as property, debts, inheritance rights, or spousal support, may be handled if the marriage later ends through divorce.

A prenup may focus on:

  • Division of property
  • Separate and marital assets
  • Business interests
  • Debts and financial obligations
  • Inheritance rights
  • Spousal support considerations

Many couples who use prenuptial agreements do not expect their marriage to fail. For them, they want greater financial clarity and certainty.

Here is what makes this agreement valid in Michigan.

The Agreement Must Be in Writing

In Michigan, a prenuptial agreement should be in writing to be enforceable. Verbal agreements about property division or financial rights do not have the same protections like a written agreement. 

A written document provides a record of the parties’ intentions.

Both Parties Must Enter the Agreement Voluntarily

A valid prenuptial agreement must be voluntarily signed. This means neither party can be forced, pressured, or improperly influenced into signing the agreement. 

Each spouse should have plenty of time to consider the agreement. 

Full and Fair Financial Disclosure Is Important

Before signing the agreement, each spouse should know about the other person’s financial health, including their:

  • Income
  • Assets
  • Debts
  • Investments
  • Business interests
  • Financial obligations

If one person hides assets or fails to disclose important financial information, a court may question the validity of the agreement.

The Terms Cannot Be Unreasonable 

Michigan courts may refuse to enforce an agreement that is considered unconscionable. This is something that is extremely unfair or unreasonable under the circumstances. Courts may look at some factors such as:

  • Whether one party lacked meaningful bargaining power
  • Whether the agreement creates severe financial hardship
  • Whether the terms were grossly one-sided
  • Whether circumstances have substantially changed since the agreement was signed

Keep in mind, if an agreement favors one spouse, that does not make it invalid. However, extremely unfair terms may create enforceability concerns.

You May Want Legal Help for These Agreements 

Michigan law does not always require each party to have separate attorneys for a prenuptial agreement to be considered valid. However, legal representation can be very important.

With a lawyer, they can make sure that:

  • Each person understands the agreement
  • All questions are fully addressed
  • Potential risks are explained
  • The agreement is negotiated fairly

If one spouse later argues that they did not understand the agreement, showing that both parties had legal counsel can strengthen the agreement’s enforceability.

Can a Prenuptial Agreement Be Challenged?

Wooden judge's gavel with gold wedding rings on base, pen, and paper, blurred couple cutouts.

Yes. Even after years of marriage, one spouse may challenge a prenuptial agreement during divorce proceedings. There are a few reasons for challenges. They include:

  • Lack of financial disclosure
  • Allegations of coercion or pressure
  • Claims that the agreement is unconscionable
  • Questions about whether the agreement was signed voluntarily

In these cases, the court will review the facts and decide whether the agreement meets Michigan’s legal requirements.

Planning for the Future

What makes a prenuptial agreement valid in Michigan? It should be entered freely, based on full and fair financial disclosure, and not be unconscionable or unfair to enforce under the circumstances.

While bringing up the subject of a prenuptial agreement may feel uncomfortable, this process encourages honest conversations about finances, goals, and expectations.

If you are considering a prenuptial agreement or have questions about an existing one, the Law Office of Melissa M. Pearce, PLC is ready to answer your questions. We can make sure that your agreement is properly prepared and designed to withstand future challenges. Schedule a consultation today.