Engaged couples can prepare for their legal and financial future by entering a prenuptial agreement. After marriage, couples can also prepare for asset division if they ever divorce and engage in financial planning by discussing and entering postnuptial agreements.
Postnup defined
A postnuptial agreement, also known as an antenuptial agreement in Ohio, is a legal agreement that couples make after they marry that sets forth how their financial assets will be divided if they ever divorce.
It is similar to a prenuptial agreement but is entered after marriage. Postnuptial agreements can also specifically address changes in the couple’s financial circumstances.
Agreements must be fair for both parties or they may be declared invalid. These agreements can also cover other issues such as dividing join business interests.
Couples should consider entering antenuptial agreements if:
- One spouse has substantially more post-marital assets than the other spouse.
- One spouse is liable for substantial debt
- One spouse is financially irresponsible.
- There is anxiety over shared finances or a possible divorce.
- The couple’s assets or income rose substantially during their marriage.
- A spouse started a business.
Advantages
There are several advantages for entering these agreements which include:
- Couples can assess how their assets, especially those obtained during marriage, may be divided if they ever divorce.
- Spouses can gain insight over their property and income earned during their marriage.
- These agreements may foster insight, transparency and a candid discussion about the spouses’ assets and financial situation.
Disadvantages
There are downsides which may include:
- Spouses may be hesitant to discuss the end of their marriage, especially if this discussion occurs at the beginning of their marriage.
- Couples can never agree on the division of their assets and a financial plan.
- A spouse may not be coerced into entering into an agreement so discussions may not lead to a postnuptial agreement.
Process
First, discuss entering an antenuptial agreement with your spouse. Be open and candid.
Explain the reason for the agreement, its benefits for both of you and reassure your spouse that you are not seeking a divorce.
Next, compile financial and legal documents. Legal representation can help assure that the agreement is fair and reasonable and complies with Ohio law.