Now That Postnuptial Agreements are Legal in Ohio, Might One Make Sense for You?

Want To Create a Postnuptial Agreement? It is now Legal in the Stare of Ohio.

Postnuptial Agreement can be a very Practical Step to Avoid Confusion if a Marriage Should Terminate

Finally Ohio has joined 48 other states and is now permitting postnuptial agreements to be executed and recognized. This is extremely significant news for married couples in Ohio! Click here to read our blog about this law change which we posted here on February 11, 2023.

WHAT ARE POSTNUPTIAL AGREEMENTS?

Generally speaking, a postnuptial agreement is a tool of protection. It can modify or revoke a prior prenuptial agreement or be drawn to control marital finances and assets in the event of divorce or death. Under Ohio law a spouse cannot be disinherited under a will. Ohio law provides what minimum property a spouse must receive absent a prenup or postnuptial agreement.

KEY PURPOSES FOR CREATING A POSTNUPTIAL AGREEMENT

While married couples generally do not want to contemplate the end of their marriage, executing a postnuptial agreement can be a very practical step to avoid confusion in the event a marriage ends for any reason. It can provide certainty as to individual and joint marital wealth which may be very important especially if the couple has complex financial holdings or is a small business owner.

Here are six important purposes to consider:

1. Helping Save Your Marriage – While this may sound strange, communicating and working through the details of creating a postnuptial agreement may actually strengthen your marriage. Financial problems are one of the top several reasons why marriages fail. Working through issues of different spending habits or financial goals can be extremely important to save a troubled marriage. Establishing a postnuptial agreement can often help assist a spouse with irresponsible spending habits to stay on track in a non-destructive manner. Working with a counselor can be beneficial!
2. Regretting Not Having a Prenuptial Agreement – Have circumstances changed since your marriage? Or, perhaps, getting a prenuptial agreement didn’t occur for one reason or another before your wedding day. Or, maybe the reality of actually living in a marital relationship is different from what you had hoped or envisioned. You can change that with a postnuptial agreement.
3. Avoiding a Nasty Divorce – A well prepared postnuptial agreement can help reduce the likelihood of suffering through a costly and bitter divorce. I can’t tell you in my 40+ year divorce practice how many clients have told me that they wish that they had the foresight to have drawn a prenuptial agreement! Now, with this law change, that barrier is removed and you have a second chance. Many of the contentious issues in a divorce, such as asset division, business ownership and alimony are included in a postnuptial agreement. Did you know that in long term marriages, a party can be awarded 50% of their Ex’s net income indefinitely? If a couple files for a divorce without a postnuptial agreement and the parties/counsel are unable to enter into an agreement, the Judge will need to hear significant evidence regarding tangled finances. Often, both sides will need to engage CPA’s to testify about these confusing transactions often occurring many years ago. These agreements can avoid costly accounting nightmares.
4. Starting a New Business – a postnuptial agreement can be extremely helpful if one spouse is starting a new business. It can protect the business and any shareholders, members, partners or investors.
5. Estate Planning Purposes – Don’t let Ohio law control any part of your estate plans. Postnuptial agreements are flexible and tailored to your individual wants and needs. Do either of you have children from prior relationships? How assets will pass to those children can be included in a postnuptial agreement. It is important to include your estate planning attorney as part of the team to be certain that the postnuptial agreement is consistent with the will, trust and other estate planning documents.
6. Making an Oral Agreement Enforceable – Spouses frequently enter into oral agreements during the course of a marriage. Without a postnuptial agreement, many of those agreements won’t be enforceable. Creating a postnuptial agreement will memorialize those oral terms and avoid any enforceability problems.

DO YOU NEED A POSTNUPTIAL AGREEMENT?

If you have decided that you need a postnuptial agreement or have questions about one, do not hesitate to reach out to us. The attorneys at Holzfaster, Cecil, McKnight & Mues will help answer your questions. If you decide to move forward, our lawyers will draft a postnuptial agreement that incorporates and protects your specific interests.

NOTE: Obviously, we cannot ethically represent both parties in a postnuptial agreement since both your interests’ conflict. This process requires both spouses to have separate legal representation to avoid any duress or overreaching arguments. Please see our new Postnuptial Agreements help page by clicking here.

Schedule an Appointment:

At Holzfaster, Cecil, McKnight & Mues, located in Dayton, Ohio, top-notch estate planning doesn’t need to be complicated or expensive! To learn more, go to our website at www.hcmmlaw.com. Or, please contact us at 937 293-2141.to schedule an appointment for an initial consultation which can be conducted either by phone, Zoom or in person.

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