In March 2023, Ohio changed its laws to allow married couples to create legally binding postnuptial agreements. Before this, Ohio was one of only two states, along with Iowa, that did not recognize these agreements, leaving couples unable to adjust their financial arrangements after marriage.
What is a postnuptial agreement?
A postnuptial agreement is a legal contract signed by spouses after they are married. It outlines how financial assets and property will be divided in the event of a divorce or separation. It also addresses debts, spousal support, and other financial matters, providing clarity for both parties.
Ohio’s new law on postnuptial agreements
The new Ohio Revised Code now permits legally enforceable postnuptial agreements. For the agreement to be valid, both spouses must fully disclose their assets and debts, and they must enter the agreement fairly without fraud, duress, coercion, or overreaching. Both parties must also enter the agreement voluntarily, without coercion or pressure.
Additionally, the law allows couples to modify or terminate existing prenuptial agreements. This change allows couples to address financial matters during their marriage, offering flexibility that was previously unavailable. Couples may use a postnuptial agreement to amend their financial terms after significant changes, such as starting a business, receiving an inheritance, or going through a financial hardship.
Embracing new opportunities
The ability to revisit and redefine postnuptial agreements offers couples a unique chance to strengthen their partnership. By exploring new options and making thoughtful decisions, spouses can enhance their financial security and foster a more harmonious relationship.