At Garretson & Holcomb, LLC, we’re committed to helping our clients navigate the complexities of marriage and finances with ease and confidence. One of the ways we do this is by providing thorough advice on prenuptial agreements, or prenups, as they’re more commonly known.
A prenup is a legal contract a couple signs before getting married, which outlines how their assets will be divided in the event of a divorce or the death of one partner. The main goal of a prenup is to ensure that both people have a clear understanding of their financial rights and responsibilities and that their interests are protected.
This article will provide you with the basics about prenuptial agreements in Ohio and, specifically, whether future assets can be protected. However, if you need personalized advice tailored to your unique situation, call our West Chester Township office today.
The Purpose of a Prenup
A prenup is a proactive measure to manage financial matters carefully before a wedding. It does this by clearly defining what each person owns before they get married. This includes their savings accounts, real estate, stocks, and personal items.
By clarifying these details upfront, a prenup helps to avoid conflicts over property and financial resources if the marriage ends. And it’s not just about protecting assets. Prenups can also address debt responsibility, spousal support, and inheritance issues.
They make sure both people are on the same page from the start by clearly defining each person’s rights and responsibilities. Wealthy business owners may use a prenup to protect their employees from the financial upheaval that a divorce could cause. On the other hand, prenups are also commonly used by young couples to make sure their student loans aren’t transferred to their spouses if the marriage ends. It’s a practical way of making responsible decisions about your future.
Coverage of Future Assets
One common misconception about prenups is that they automatically cover all assets, including those bought after the marriage. However, this isn’t always the case. Unless carefully noted in the agreement, assets gained during the marriage may be considered joint marital property.
This means that if you don’t make your wishes clear in the prenup, any money you make, properties you buy, or investments you acquire after getting married will usually be owned by both you and your spouse together.
To ensure that your future wealth and assets are managed according to your wishes, it’s important to include specific details in your prenup. For example, you might outline that any future assets acquired should still be considered your property.
If you start a business during your marriage, your prenup could also specify that your spouse will not own any of it. The same is true for any real estate you buy after the wedding. You could decide in advance whether these properties will be shared equally or if the ownership will lean more towards one person. This kind of clarity in your prenup helps prevent misunderstandings and ensures your future assets are divided exactly as you intend.
How to Safeguard Future Assets
Protecting your future assets with a prenup requires careful planning and consideration. Here are some strategies that can help:
- Maintain Separate Accounts: Keeping your pre-marriage assets in separate bank accounts can help ensure they remain your individual property. This is especially important for any future earnings or investments you want to keep separate from the marital pot.
- Consider a Postnuptial Agreement: Life and financial situations can change significantly after you get married. A postnuptial agreement can be used to update or add to the terms of your prenup. It will cover new assets or changing financial situations.
- Keep Detailed Records: Documenting the origin and ownership of your assets is crucial. Keep records of all transactions related to your personal property, including purchase dates, amounts, and any documents that prove the asset is yours alone. This makes it easier to distinguish your individual assets from those acquired jointly during the marriage.
- Use Trusts Wisely: Setting up a trust can be a smart way to manage and protect your assets. Trusts can specify how your assets will be handled and distributed during your lifetime and after. They can offer protection for your assets, keeping them separate from marital property.
- Be Clear About Inheritances: Make sure any inheritances are kept in separate accounts and not commingled with marital assets. If you inherit money or property, keeping it separate can ensure it remains your individual asset.
How We Can Help
If you’re in West Chester Township, OH, and thinking about getting a prenup, or if you have questions about protecting your financial future, we’re here for you. Our team at Garretson & Holcomb, LLC, has the expertise and compassion to guide you through the process of drafting a prenup that reflects your unique circumstances and goals.
A prenuptial agreement is more than just a legal document; it’s a practical step towards a secure future with your partner. Whether you’re concerned about protecting your current assets or planning for the future, we’re here to help you navigate these decisions with confidence.
Reach out to us at (513) 863-6600 to discuss how we can assist you in creating a prenup that safeguards your interests and supports your marriage journey.
