Many people in Ohio have heard of a prenuptial agreement. This legally binding document protects the assets a spouse owned before marriage in case of a future divorce. A document that is not quite as well known but serves a similar purpose is a postnuptial agreement. This document is signed during the marriage.
A postnuptial agreement allows a couple to add some clarity to their finances. Drawing up this document does not necessarily mean that a couple is headed for separation or divorce. It can actually add transparency to a couple’s finances and help them to establish new money routines.
One area where having a postnuptial agreement can be especially beneficial is when the couple owns a sizable business together. It will take some time to draw up this document, and professionals usually need to be involved. A financial planner typically helps to coordinate a variety of parties, including accountants. The business may need to be evaluated and a succession plan will need to be drawn up.
When a couple decides to create a postnuptial agreement, it’s time for full disclosure. This allows a couple to lay out their assets and debts. They can discuss significant investments and any issues with their business. It’s also wise to discuss how family members will factor into the equation, including minor children or adult children who may be involved in the family business.
Financial planning along with discussing divorce both have their challenges. Speaking with an attorney when drawing up a postnuptial agreement could be helpful. The attorney could answer a client’s questions about property division, alimony, child support and post-divorce modifications. If necessary, legal counsel could even represent a client in court.
