What is a Prenuptial Agreement?

A prenuptial agreement, often referred to as a “prenup”, is a contract made between two people who are planning to get married. This contract outlines the rights and responsibilities each person will have if they get divorced or one of them passes away.

It's important to make this agreement before the marriage because it changes the usual legal rights and duties that come with marriage. Prenuptial agreements must follow certain legal rules, such as the Statute of Frauds, which generally requires them to be in writing.

Basics of a Prenuptial Agreement

While these agreements are usually written down before the wedding, courts sometimes accept written notes or documents created after the marriage if they clearly refer to an earlier verbal agreement. This written agreement should clearly indicate that it is based on the previous verbal agreement.

Couples who enter into a prenuptial agreement have a special relationship that requires them to be honest and act in good faith. The Ohio Supreme Court has ruled that as long as both parties voluntarily agree to the terms and the terms are fair and reasonable, the prenuptial agreement is valid.

Key Components for a Valid Prenuptial Agreement

To determine if a prenuptial agreement is valid, courts apply two tests: one for property division and another for spousal support.

Property Division

For property division, there are three main points to check:

1. Was the agreement made freely without any fraud, pressure, or trickery?

2. Did both parties fully understand and disclose their property and assets?

3. Does the agreement encourage divorce or benefit one party in case of a divorce?

This fairness test looks at the situation when the agreement was made. A valid prenuptial agreement can also exclude property that might increase in value during the marriage from being divided in a divorce.

Spousal Support

For spousal support, the test is whether the support terms are fair, but this is judged based on the situation when the agreement is enforced, not when it was made. In 1984, the Ohio Supreme Court decided that prenuptial agreements that take effect after a marriage ends are not against public policy.

In the Event of Death

If one of the people who signed a prenuptial agreement dies, the agreement remains valid unless someone challenges it in court within four months after the estate is settled.

Prenuptial agreements often lead to legal disputes, especially in cases of divorce, dissolution, or death. Surviving spouses might try to invalidate these agreements if they feel the terms are unfair compared to what they would receive under normal inheritance laws. Because of this, prenuptial agreements can be a frequent subject of court cases.

A prenuptial agreement is a practical tool that can provide financial clarity and protection for both parties entering into marriage. While it may not be the most romantic aspect of wedding planning, it is a responsible step that can help prevent future disputes and ensure a fair division of assets. If you’re considering a prenup, consult with a qualified family law attorney to ensure your agreement is legally sound and tailored to your specific needs.