There are two important legal tools available to Michigan couples in cities like Troy, Farmington Hills, Rochester Hills, or Southfield who want to protect their separate finances and assets in marriage. Most people think of Pre-nuptial agreements. However, couples can also create a post-nuptial agreement in limited circumstances. Unlike a pre-nuptial agreement, which is created before marriage, a post-nuptial agreement is entered into after a couple is married.
While post-nuptial agreements are less common, they can be an effective way for couples across Oakland County to protect individual assets and plan for the future, especially where substantial assets or debts are involved.
What Is a Post-Nuptial Agreement in Michigan?
A post-nuptial agreement (or “postnup”) is a written contract between spouses created at any point during the marriage that outlines how assets, debts, and finances will be managed during the marriage and if the marriage ends in divorce, how they will be divided. Under Michigan law, courts might enforce these agreements so long as the terms are fair to both parties, they are voluntarily entered into, and based on full financial disclosure. Postnuptial agreements are very closely scrutinized and generally disfavored by the courts.
Post-nuptial agreements are evaluated more closely than prenuptial ones, so the agreement must meet all legal requirements to improve its enforceability by a Michigan court. Still, we counsel our clients that post-nuptial agreements are not a first choice.
Why Oakland County Couples Might Consider a Postnup
Couples from Novi to Bloomfield Hills may consider a post-nuptial agreement in situations such as:
- Change in financial circumstances: If one spouse receives a large sum of money, sells a business, or earns a significant pay increase after marriage, a postnup can outline how those assets will be handled.
- Business ownership: A spouse who owns a business in a city like Royal Oak or Auburn Hills may want to shield that business from divorce-related division.
- New debt: A postnup can allocate responsibility for debts acquired during the marriage, which may help protect both spouses’ credit.
- Blended families: If either spouse has children from a prior relationship, a postnup can ensure that certain assets are preserved for those children.
- Improving transparency and marital harmony: Discussing financial responsibilities and expectations can improve communication and reduce uncertainty in the future.
Key Legal Requirements for a Valid Michigan Postnup
To be enforceable in Michigan, including in the Oakland County Circuit Court, a post-nuptial agreement must meet certain legal standards:
- Full and fair disclosure: Both spouses must disclose all financial assets, liabilities, and obligations. All of which should be addressed by the terms of the agreement.
- Voluntary execution: The agreement must be signed willingly, not under duress, and without coercion from either spouse or third parties.
- Fairness: The terms cannot be unconscionable, meaning they cannot be so one-sided that enforcement of the agreement would be unfair to the other spouse.
- Independent legal counsel: Although not strictly required, it is strongly recommended that each spouse have separate attorneys to avoid claims of unfairness later. If one spouse was given the opportunity to consult with an attorney but ultimately chose not to, they cannot claim lack of counsel as a reason for the agreement not to be enforced.
Courts in Michigan, including those in Oakland County and Livingston County, will consider upholding a postnup if it is equitable, entered into freely, and does not violate public policy. However, public policy generally disfavors post-nuptial agreements despite them being enforceable since around 2014.
Advantages of a Post-Nuptial Agreement
- Protects separate and inherited property.
- Clarifies financial rights and obligations.
- Avoids future disputes during divorce proceedings.
- Offers peace of mind when entering a second marriage.
- Address how future earnings or business income will be treated.
Is a Postnup Right for Your Marriage?
A post-nuptial agreement is not about distrust or even the expectation of divorce; it’s about proactive planning for your financial future. For couples throughout Livingston County and Oakland County, whether you’re raising children in West Bloomfield or building a business in Brighton, a well-drafted postnup can help reduce conflict and ensure fairness if the unexpected occurs.
If you’re interested in exploring whether a post-nuptial agreement makes sense in your situation, you should speak with a Michigan family law attorney who is familiar with local court practices in Oakland County. An experienced attorney can explain the steps of the process, help negotiate fair terms, and ensure the agreement stands up in court, if needed.
Contact Us
At The Kronzek Firm, we help clients in Oakland County protect their financial futures with enforceable and customized post-nuptial agreements. Whether you’re in Birmingham, South Lyon, or anywhere in between, our experienced Michigan family law attorneys are here to help.
📞Contact our Farmington Hills office today at (248) 479-6200 for a consultation. You can also email us after hours at contactus@kronzek.law for information.
[Disclaimer: This content is for general purposes only and does not constitute legal advice. Hire a family law attorney for personalized guidance.]