Why Prenuptial Agreements Matter In Michigan Estate Planning

Many people think of prenuptial agreements only in the context of divorce. In our Michigan estate planning practice, we see something very different. Prenuptial agreements are often used to protect families, clarify expectations, and coordinate an estate plan well before a crisis occurs. They are especially important for clients who marry later in life, bring children from prior relationships, own small businesses, or enter marriage with significant assets or debt. We have found that clear agreements reduce conflict, protect loved ones, and support the broader estate plan. A properly prepared prenuptial agreement can work hand in hand with wills, trusts, and beneficiary designations to support long-term goals under Michigan law.

How Michigan Law Treats Prenuptial Agreements

Prenuptial agreements, also called antenuptial agreements, are recognized under Michigan law. Courts have long enforced these agreements when certain conditions are met. Michigan cases such as Rinvelt v Rinvelt, 190 Mich App 372 (1991) recognize that prenuptial agreements made in contemplation of marriage may be valid if fair and entered voluntarily. Later decisions, including Allard v Allard, 318 Mich App 583 (2017), discuss limits on agreements that would prevent courts from exercising equitable powers, reinforcing the need for careful drafting.

Under the Estates and Protected Individuals Code (EPIC), spouses have certain default rights at death. A prenuptial agreement can waive these rights when done correctly. Michigan law expressly allows waiver of spousal rights by written agreement. MCL 700.2205 provides that a surviving spouse may waive rights in whole or in part “before or after marriage by a written contract, agreement, or waiver signed by the waiving party after fair disclosure.” This section is central when using a prenuptial agreement as an estate planning tool.

What Spousal Rights May Be Waived Under EPIC

Without a waiver, a surviving spouse has significant rights under EPIC even if a will states otherwise. Those rights may include:

• The elective share of the estate under MCL 700.2202.
• Homestead allowance under MCL 700.2402.
• Family allowance under MCL 700.2403.
• Exempt property allowance under MCL 700.2404.

A prenuptial agreement can waive some or all of these rights if the statutory requirements are met. This is especially important in blended families where children from a prior relationship are to receive certain assets. A coordinated prenuptial agreement prevents unintended results and reduces the likelihood of estate litigation between surviving spouses and children.

Prenuptial Agreements And Business Ownership

For clients who own closely held companies or professional practices, a prenuptial agreement can be critical. Business succession plans often assume that ownership will pass to children or co-owners rather than to a surviving spouse. By using a prenuptial agreement in combination with shareholder agreements and trusts, we can align business planning with estate goals while complying with Michigan law.

Requirements For A Valid Prenuptial Agreement In Michigan

While each case is fact-specific, courts generally look to several factors when evaluating enforceability:

• Voluntary execution.
• Absence of fraud, duress, or coercion.
• Fair and reasonable disclosure of assets and debts.
• Terms that are not unconscionable when executed.

The disclosure requirement is reflected in MCL 700.2205, which specifically conditions certain waivers on fair disclosure. We recommend full written financial disclosure as part of the process to reduce challenges later.

How Prenuptial Agreements Work With Wills And Trusts

A prenuptial agreement is not a substitute for an estate plan. Instead, it should be designed to coordinate with:

• Wills
• Revocable living trusts
• Beneficiary designations on retirement accounts and life insurance
• Business succession documents
• Deeds and titles

We often prepare or update estate planning documents at the same time a prenuptial agreement is signed. This ensures that promises made in the agreement are carried into effect through legally enforceable documents consistent with Michigan statutes.

Common Situations Where Prenuptial Agreements Help

We frequently recommend prenuptial agreements in situations such as:

• Second or later marriages with adult children.
• A large difference in wealth between future spouses.
• Real estate or business ownership before marriage.
• Anticipated inheritance or family gifts.
• Desire to keep premarital assets separate.

In these circumstances, a prenuptial agreement can reduce uncertainty and protect family relationships during emotionally difficult times such as incapacity or death.

Michigan Estate Planning Frequently Asked Questions

What Can A Prenuptial Agreement Do In Michigan Estate Planning?

A prenuptial agreement can clarify property rights, define separate versus marital property, and waive certain spousal rights under the Estates and Protected Individuals Code. Under MCL 700.2205, spouses may waive the elective share or other allowances through a written agreement after fair disclosure. This allows an estate plan to direct property to children from prior relationships, charities, or trusts without the automatic spousal claims that would otherwise exist. We use these agreements to support wills and trusts, not to replace them.

Does A Prenuptial Agreement Override A Will In Michigan?

A prenuptial agreement does not technically “override” a will but instead changes the legal rights that would otherwise apply. For example, a surviving spouse normally may claim an elective share under MCL 700.2202 even if the will leaves less. When a valid waiver exists under MCL 700.2205, the spouse may be bound by those terms instead of default statutory rights. Because both documents operate together, we draft wills and prenuptial agreements to be consistent.

Is Full Financial Disclosure Required For A Valid Prenuptial Agreement?

Michigan law requires fair disclosure when waiving certain rights under EPIC. Courts also examine disclosure when deciding whether agreements are voluntary and fair. We advise clients to provide written disclosure of assets, debts, income, and significant financial expectations. Thorough disclosure supports enforceability under MCL 700.2205 and reduces future disputes about what each party knew before signing.

Can A Prenuptial Agreement Protect Children From A Prior Marriage?

Yes, that is one of the most common uses of prenuptial agreements in our practice. Without planning, a surviving spouse has statutory rights that can significantly affect what children receive. By using a prenuptial agreement to waive certain rights, and coordinating that waiver with trusts and beneficiary designations, we can help ensure that children from previous relationships receive intended inheritances in compliance with Michigan statutes.

Can A Prenuptial Agreement Be Changed Or Revoked After Marriage?

Prenuptial agreements can sometimes be modified or revoked, but changes must be made carefully. Written amendments, signed by both parties, are typically required. Because waivers under MCL 700.2205 must meet disclosure and voluntariness standards, any modification should be completed with the same care as the original agreement. We review both the original terms and current objectives before recommending changes.

What Happens If There Is No Prenuptial Agreement In Place?

If there is no prenuptial agreement, Michigan statutory spousal rights generally apply at death. Those rights can include the elective share, homestead allowance, exempt property, and family allowance under EPIC. A surviving spouse may exercise these rights regardless of what a will states. Without a prenuptial agreement or valid waiver, estate plans must be built around those statutory protections. This is why many blended families choose to address expectations in writing before marriage.

Do Prenuptial Agreements Affect Retirement Accounts Or Life Insurance?

They can, but beneficiary designations control these assets in many cases. A prenuptial agreement can outline how retirement and insurance benefits should be distributed and can include waivers of spousal rights where permitted. We then coordinate those provisions with actual beneficiary forms to ensure they match the agreement. Proper coordination is essential to avoid unintended results under Michigan and federal law governing retirement plans.

Is Independent Legal Counsel Required For Prenuptial Agreements?

Michigan law does not explicitly require each party to have separate counsel for a prenuptial agreement to be valid, but independent legal advice is strongly recommended. Courts reviewing agreements often consider whether each party had a meaningful opportunity to understand the document. Separate counsel supports voluntariness and fairness, two key factors in enforceability under Michigan case law.

Call To Discuss Prenuptial Agreements As Part Of A Michigan Estate Plan

Prenuptial agreements are powerful estate planning tools when properly prepared and coordinated with wills and trusts. For individuals entering marriage with children from prior relationships, significant assets, or business interests, careful planning can prevent disputes and protect loved ones.

To discuss whether a prenuptial agreement should be part of an estate plan, call the Michigan estate planning attorneys at Boroja, Bernier & Associates at 586-991-7611 to schedule a consultation. The firm has offices in Troy, Michigan, and Shelby Township, Michigan, serving clients throughout Oakland County and Macomb County.