Effective in 2023, Ohio introduced a law that allows married couples to enter into post-nuptial contracts—an option previously unavailable in the state. Known as post-nuptial agreements, this legislation brings Ohio in line with many other states that already offer this legal tool. While most people are familiar with pre-nuptial agreements, which sort out financial matters before marriage, post-nuptial agreements allow married couples to make binding decisions about property, assets, and support after the wedding.
This new law has wide-reaching implications. One of the most significant changes is that spouses can now modify existing pre-nuptial agreements through a post-nuptial contract. This flexibility is beneficial for couples facing unexpected financial changes or marital issues that could be resolved by altering the terms of their financial arrangements. For instance, if the couple is experiencing discord, a post-nuptial contract could redefine the division of property in case the marriage does not work out.
As an estate planning attorney, I am particularly interested in how this law can enhance estate planning solutions for couples. Many of my clients are in second (or even third) marriages, often with children from prior relationships. These clients frequently have significant assets, such as retirement accounts, that were built up before the second marriage. The new law allows these couples to create contracts that address complex estate planning needs that weren’t easily solvable before.
For example, naming the second spouse as the beneficiary of an IRA is often the most tax-efficient strategy, as it maximizes the tax-deferred benefits. However, this can create a challenge for individuals with children from previous marriages. Once the surviving spouse inherits the IRA, they have the freedom to name any beneficiary they wish, potentially leaving out the deceased spouse’s children. With the new Ohio law, couples can use a post-nuptial contract to ensure that the surviving spouse names the deceased spouse’s children as beneficiaries of the account—striking a balance between tax benefits and protecting the financial legacy for the children.
This new law offers creative solutions for estate planning and asset management, particularly for couples in complex family dynamics. As we continue to explore its possibilities, we anticipate it becoming a valuable tool for helping our clients achieve more secure and equitable outcomes in their estate plans.
If you’re curious about how this law might benefit you and your family, contact our firm to learn more about post-nuptial agreements and other estate planning strategies.