Co-Authored By: Richard Rabb, Principal & Daniel Howard, Law Clerk
A prenuptial agreement, more commonly known as a “prenup,” often conjures images of high-profile celebrities and wealthy businesspeople safeguarding their assets. However, in the State of Ohio, prenups serve as an invaluable tool for individuals from all walks of life, promoting financial transparency and providing a roadmap for securing assets and family wealth. Think about a prenup like an insurance policy; no one bets on a house flood or fire, but everyone has insurance. No one anticipates divorce or death when they marry, but the divorce rate says otherwise, and death is certain. Protecting finances in your marital relationship is a smart step to take before entering that financial partnership.
To appreciate why these documents are helpful, one must appreciate what happens in the event of divorce or death and this document is not drafted. Prenups may be perceived as taboo, however, they aid in the unlikely termination of the marriage. Like an operating agreement in a business partnership, the contract that defines what happens should the business cease operation is critical—the same is true in marriage. A prenup is a legal contract entered into by a couple prior to marriage, outlining distribution of assets, spousal support, and other financial considerations in the event of divorce or death. In Ohio, these agreements are prudent means of protecting individual interests while fostering open communication between partners.
In the event one spouse has a business interest, a prenuptial agreement should be an absolute prior to entering the marriage. It is important to recognize if your marriage has a financial component so you can take steps to protect your family wealth and your finances before entering that financial partnership with your spouse.
Prenups enable candid conversation about financial expectations, assets, and debts prior to marriage, laying the foundation for a relationship built on trust and understanding. By clearly defining each party’s rights and responsibilities, a prenup can mitigate disputes and uncertainties that may arise in the unfortunate event of divorce or death.
No two relationships are identical, which is why it’s important to consult legal counsel when considering a prenup. There are several online resources that perhaps may be less expensive, but it is the proverbial, “you get what you pay for” that may make that inexpensive indulgence unenforceable when the agreement has application. Engaging with legal counsel is vital in minimizing potential prenup challenges that may be faced in the event of divorce or death. Whether safeguarding a family business, protecting inheritances, or outlining spousal support terms, attorneys can customize prenups to meet the unique needs and circumstances of each couple.
Ohio is home to a myriad of entrepreneurs and small-business owners. Prenups provide a mechanism for these individuals to shield their businesses from complexities of divorce proceedings, helping to ensure the continued success and security of their enterprises.
Crafting comprehensive prenuptial agreements requires a nuanced understanding of Ohio’s family laws for divorce, death, and tax. In handling prenups, our experienced legal team offers a unique approach in that we offer experienced counsel in family law, estate planning, and tax planning. All prenups see the eyes of at least one family law attorneys and another for the death piece of the agreement.
Prenups are not merely tools for the affluent; they are also practical instruments for individuals committed to building a strong foundation for their marriage. At McCarthy Lebit, we recognize the significance of these agreements in promoting financial transparency and protecting individual interests, and we can assist you in securing your future.
For more information or to seek counsel from our family law attorneys, please reach out to request a consultation or call us at 216-696-1422.
