What is a Postnuptial Agreement?
These are created after marriage to provide security and protect assets obtained later.
In March 2023, Ohio legalized Postnuptial Agreements (often referred to as postnups). These agreements have become more popular as couples look to protect their assets. Prenuptial agreements have been valid for a long time and are signed before the marriage, postnuptial agreements, on the other hand, are created after the couple has already married.
When can postnuptial agreements be useful?
Change in Circumstances: We all know that nothing stays the same. After marriage, different events such as one spouse receiving an inheritance or becoming an owner of a family business can occur. In these cases, a postnup can help to ensure that these assets are protected in the event of a divorce and provide some security as well to the other spouse.
Infidelity: A postnuptial agreement can help to rebuild trust and provide some level of security if a spouse has been unfaithful. The agreement can specify how assets will be divided in the event of a divorce.
Second Marriages: If one or both partners have been married before and did not enter into a prenup, a postnup can help to ensure that assets from previous marriages are protected both at death and in the event of a divorce. This can promote family harmony between children from the first marriage and the surviving spouse down the road.
Protecting Business Interests: If one or both partners own a business, a postnup can be a valuable tool for protecting those interests. The agreement can specify how the business will be divided in the event of a divorce and can also include provisions for buyouts and other important considerations.
While post-nuptial agreements can be a valuable tool for protecting assets and financial interests, they are not right for every couple. It’s important to speak with an experienced attorney to determine whether a post-nup is the right choice for your situation. With careful planning and expert advice, a post-nup can help to provide peace of mind and security for both partners in a marriage.