By: Jessica L. Beauchamp
On March 23, 2023, Ohio Senate Bill 210 was signed into law. This law allows for married couples to enter into a postnuptial agreement or modify or revoke an existing prenuptial agreement. Prenuptial and postnuptial agreements can be used to define marital rights and the rights of either spouse upon divorce or death.
A prenuptial or postnuptial agreement can define how marital assets or funds accumulated during the marriage will be allocated upon a divorce. The agreements can also define how assets will be divided in the event of one spouse’s death. Prenuptial or postnuptial agreements are often used in second marriages to protect children from prior relationships. The agreements can be used to ensure that assets are protected for the children. Without the proper protections that a prenuptial agreement or estate plan can provide, those assets could be distributed to the new spouse upon death or divorce, despite your intent for the assets to go to your children.
A postnuptial agreement allows for more flexibility in planning. Prior to the enactment of the new law, it was not enforceable to enter into an agreement after marriage. You also could not modify or revoke terms of a prenuptial agreement that were outdated. This allows for married couples to change their agreements as their circumstances change over time.
For a prenuptial agreement to be terminated or amended or for a postnuptial agreement to valid, the new law requires the following: the agreement be in writing and signed by both spouses, the agreement is entered into freely without fraud, duress, coercion or overreaching, there was full disclosure, or full knowledge, and understanding of the nature, value and extent of the property of both spouses, and the terms do not promote or encourage divorce or profiteering from divorce.
In determining whether a prenuptial agreement, modification, or postnuptial agreement is right for you, you should discuss your specific situation with an attorney. For questions about postnuptial agreements or related issues, contact the Strauss Troy Domestic Relations Group.