Postnuptial Agreements, entered into by married couples, define and arrange rights and obligations in the event of death and divorce. Until December of 2022, Ohio was one of a few states that didn’t allow spouses to enter into Postnuptial Agreements. Ohio law only allowed spouses to alter their contractual rights and obligations through the divorce process. On December 22, 2022, Ohio passed Senate Bill 210, Sections 3103.05 – 3103.061, which:
- Allows spouses to enter into postnuptial contracts;
- Allows spouses to amend prior Prenuptial Agreements
Senate Bill 210 becomes effective on March 23, 2023. It will allow individuals to protect their financial circumstances that may have changed since the date of marriage. For example, Postnuptial Agreements can be beneficial if one spouse unexpectedly comes into an inheritance or acquires a thriving business.
Alternatively, if a marriage is rocky and one spouse has a flourishing career, he/she might feel that it’s financially advantageous to divorce immediately. A Postnuptial Agreement can remove pressure, provide a safety net, and allow parties to work on their marriage without worrying about the financial repercussions of staying together.
Furthermore, Postnuptial Agreements can benefit individuals who previously entered into a Prenuptial Agreement, and now wish to adjust the terms to be more in-line with their current circumstances.
The requirements for a valid Postnuptial Agreement are the same as those of a Prenuptial Agreement.
A Postnuptial Agreement will be valid if:
- It is in writing and signed by both spouses;
- It is entered into voluntarily, without duress, fraud or coercion;
- Both parties fully disclose their financial circumstances, including all their assets and liabilities;
- The terms do not encourage divorce.
Senate Bill 210 will empower married Ohioans to manage their financial circumstances in the event of death and divorce. Additionally, it will allow married individuals to formulate a customized division of their estate, rather than being subject to state law.
For more information or to seek counsel from our family law group, reach out to request a consultation or call us at 216-696-1422.
