Importance of a Prenup for High Net Worth Divorce

The Michigan divorce process is the same, no matter how much or how little you have in your bank account. However, high net worth spouses inherently have more complex divorces and much to lose. While some of these complexities can’t be avoided, you can protect your assets and make the process smoother with a carefully written and enforceable prenuptial agreement, or prenup for short. Family courts can disregard prenups that aren’t properly drafted, weren’t drafted in good faith, or if the other spouse disputes its validity. Working with a Michigan high net worth divorce lawyer is a critical step to ensure that your prenup will stand up in court.

What a Prenuptial Agreement Can Protect

A prenup protects the rights and obligations of each spouse regarding their property. For example, if one spouse owns a house before getting married, the prenup could say that this spouse will take care of all the costs to maintain the property. A prenup can also safeguard the right to conduct property transactions. For instance, if one spouse owns a vacation home, the prenup could dictate that they would have the sole right to lease or sell the property. At the same time, it could also assert that the other spouse has the right to use it and live in it in the summer. 

Prenuptial agreements can also cover agreements regarding:

• Asset division, financial accounts, and business matters 
• Retirement accounts or if they will divide each account
• Management of the couple’s property during the marriage
• Who, if anyone, will pay alimony or spousal support, and the amount and duration of payments
• The division of life insurance proceeds
• Inheritance or support of any children from previous relationships
• What happens if one spouse passes away while they are still married
• If there needs to be a will to help cement the terms of the agreement

A high net worth divorce can be less expensive, stressful, and time-consuming if the couple has an effective prenup. A prenup serves as a roadmap for what needs to occur in the divorce process and how certain issues will be dealt with and end. If you are a high net worth individual, taking the time to meet with an experienced Michigan high net worth divorce attorney can significantly impact the process and outcome of any potential divorce.  

Making Your Prenup Enforceable

If you draft a prenup that isn’t enforceable, you’ve wasted your time. If you are going to take the time to create one, it’s best to work with a Michigan high net worth divorce lawyer who can guide you in what you can or can’t include. They can ensure that you take all the proper steps to make it enforceable and that you know your options. 

Under the Uniform Prenuptial Agreement Act, which Michigan subscribes to, prenups must be:

• Reasonable and equitable under the circumstances
• Voluntarily entered into with both spouses understanding their rights and waiver of rights
• Mutually consented to without undue influence
• Signed by both mentally capable spouses

Courts are typically more likely to enforce prenups if the spouses disclose their entire financial circumstances before they are signed. It’s also best if each spouse is represented and advised by their own Michigan high net worth divorce attorney.

Meet with a Michigan High Net Worth Divorce Lawyer

High net worth divorces are often highly complicated. Still, a prenup agreement can help safeguard parties if they end up getting divorced. If you have questions about creating a prenup or filing for divorce, contact the Michigan high net worth divorce attorneys at the Van Den Heuvel Law Office today.