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WHEN DO I NEED A PRENUPTIAL AGREEMENT? By James H. Allison, Attorney at Law
7737 Olentangy River Road Prenuptial Agreements are advisable prior to marriage when either or both persons intend to pursue a career and/or have substantial individual wealth accumulated prior to the marriage. In order to be valid, the prenuptial agreement must be in writing and must be voluntarily signed by both parties with each setting forth a list of all assets and liabilities in a separate exhibit attached to the document. The listing of all debts and liabilities usually precedes the preparation of estate planning documents which helps the couple create and pursue financial planning during the marriage. Both parties should have separate representation of an attorney with respect to the review and advice on a prenuptial agreement. It is unethical for one attorney in Ohio to represent both parties in the preparation and execution of a prenuptial agreement. Once reviewed by each attorney, each party then must sign the agreement voluntarily without any duress, fraud, mis-representation, or overreaching of any kind. The whole purpose behind a prenuptial agreement is to protect assets that were acquired prior to marriage, from the confrontations that can occur in a protracted divorce case, especially where substantial assets could have been involved. The agreement can be subject to attack if there is not a full and complete disclosure of all assets and liabilities, including a list of all bank accounts, account numbers, balances in those accounts, a list of securities, their approximate total value, and an identification of all other assets owned individually by each person. Setting forth one total sum of money as being representative of “all assets” is not acceptable and is not a full disclosure as required under Ohio law. Each asset must be accounted for on the list attached to the agreement. |