What Should You Address in Your Michigan Prenup? (Pt 1)

If you’re going to be exchanging vows, then you need to plan for all eventualities…

If you follow our blog then you know that we recently discussed prenuptial agreements, and what they can’t cover. Things like deciding child custody before you even have children, making ridiculous provisions, and signing the documents the night before the wedding are all likely to make your prenup about as useful as a lead balloon in court.  

So that’s left a lot of you wondering what exactly you can include in your prenup. Well, don’t worry, we’re here to answer all those burning questions you may have about what you’re supposed to cover in your prenup. So let’s dive right in.

The most important issue is your assets and debts!

The primary purpose of a prenuptial agreement is to reduce fighting over assets and debts when a married couple parts ways. Things like who gets the house, who has to pay off the credit card, and which car belongs to which person are usually the types of issues included in a prenup. The reason behind this is that divorce is already stressful enough – why not have some of the messy details figured out ahead of time, just in case…

What exactly are your ‘assets’?

The term ‘assets’ refers to anything you own that has financial value. That may sound simple, but there’s actually a lot that falls under this title! For example:

Real Estate: This includes your home, and any other property you happen to own. Tiny hunting cabin in the woods? Yup. Lake house you inherited from Aunt Sybil? That too. Rental properties you’ve invested in for your retirement portfolio? Absolutely.

Vehicles: This refers to your car (or cars, if you own several), along with any other recreational vehicles (like boats, campers and ATVs) that you may own. Even a bicycle is technically a vehicle that falls into the asset column.

Money: When most people think of money, they think of what they have readily available in their bank accounts. But your financial assets include a lot more than just what’s hanging around in your savings account. Investments, stocks and bonds, CDs, mutual funds, trust funds, retirement accounts – all of these are financial assets that you need to deal with when you get divorced.

Personal belongings: This category includes all of your ‘stuff’. Your clothes, your furniture, your appliances, your books and electronics and housewares. Pretty much any objects you own that have financial value, and aren’t covered in the previous categories. Even your kid’s belongings fall into this category.

So what are your debts?

Debts are a little easier to categorize. A debt means any money you owe to anyone for any reason. That could include credit card debts, school loans, a mortgage payment or car payment, a personal loan you took out from the bank, essentially anything you have to pay off.

Having a good family law attorney makes a big difference!

Join us next time for a breakdown of what the court wants your prenup to look like, and what kinds of scenarios you may encounter during the process. Until then, if you or a loved one are considering getting married, and you need help setting up your prenup so that it holds water in court in the future, call us at 866 766 5245. Our skilled family law attorneys can help you with everything from prepping for your marriage, to handling your divorce. We’re here for you 24/7.