High asset divorces can be contentious, as the asset division is complex, often involving businesses, property, and complicated financial portfolios. A prenuptial agreement can safeguard the interests and assets of both parties during the marriage and in the case of a divorce. They can significantly impact the outcome of the divorce, and both spouses will need to understand exactly how the prenuptial agreement will shape asset division. If the agreement is valid, both parties are protected in the case of divorce, and the divorce process can be completed far more quickly, easily, and fairly, than one without a prenuptial agreement.
A prenuptial agreement is drawn before the marriage, and will outline exactly how assets will be divided in the case of a dissolution of the marriage. To start, both parties will fully disclose their assets, debts, and financial circumstances. If any inaccurate or incomplete information is provided in the development of the agreement, the agreement may not be valid. After disclosing what each party is bringing to the marriage, the prenuptial agreement will outline the division of those assets in the case of divorce. In many cases, this is done to keep assets, particularly businesses, property, gifts, inheritance, and individually held funds and financial portfolios, from being divided during the divorce. As high asset divorces often involve businesses, a prenuptial agreement prevents one spouse from taking control of a business or insisting that the business be sold during the divorce process. In addition, the prenuptial agreement will outline any spousal support that either spouse is entitled to in the case of divorce, which will eliminate the need for negotiations later.
There are state laws a prenuptial agreement needs to comply with. In Ohio, a prenuptial agreement cannot address child custody or child support, cannot exclude the right to counsel, and cannot provide any incentive for divorce or illegal acts. Outrageous agreements that heavily favor one side, unconscionable spousal support provisions, or unfair or deceptive terms cannot be included. In addition, the prenuptial agreement must be written and signed to be valid, and most prenuptial agreements are notarized as well.
In a high asset divorce, where the married couple has a net worth of assets over one million dollars, asset division is more difficult than in other divorces. The prenuptial agreement is designed to safeguard the interests and assets of both parties and will outline the division of assets, liabilities, and responsibilities in divorce. A prenuptial agreement can also outline the terms of spousal support with a clear framework for the amount and duration of support. By outlining a clear agreement before the marriage, the potential for contentious negotiations, which are common during high asset divorces, is greatly reduced.
The prenuptial agreement will protect individual assets and businesses from being divided or sold during the divorce process, which is crucial to many business owners who need to protect their business interests. In addition, asset division in a high asset divorce is often lengthy due to the complex interests, resulting in a long and expensive legal process. A prenuptial agreement can shorten the negotiation process, as asset division has already been previously addressed, saving both parties substantial money in legal fees.
Simply deciding that a prenuptial agreement no longer “feels fair” based on a change in assets during the marriage is not enough to challenge a prenuptial agreement. The agreement is in place to safeguard the individual property that each spouse brought into the marriage, as well as any business interests that either spouse may have. For a prenuptial agreement to be valid, it needs to meet the three requirements set forth in Ohio law.
The agreement needs to have been entered into freely, without fraud, duress, coercion, or overreaching. There must be full disclosure, knowledge, and understanding of the extent and value of each spouse’s property, and it must not promote or encourage divorce or profiting from divorce. In addition to these three requirements, a prenuptial agreement that has very unbalanced entries can often discredit the entire agreement.
For example, a provision requiring one spouse to maintain a certain weight would be considered outrageous, and may require the entire agreement to be discredited. If any of these conditions are met, the prenuptial agreement can be challenged. If the agreement is found to be invalid, asset distribution will revert to standard practice. If you feel that your prenuptial agreement is invalid, your attorney can advise you on whether or not to challenge it during the divorce proceedings, and if you do decide to challenge it, your attorney can help you prepare the evidence that will be necessary to prove the agreement is invalid.
High asset divorces have the potential to become very contentious due to the value of the assets you are dividing. When the stakes are high, both spouses may be more inclined to fight. A valid prenuptial agreement can reduce the likelihood of these disputes, expedite the divorce process, and ensure that both spouses have reasonable provisions that safeguard their interests. Your experienced divorce attorney can help you determine if your prenuptial agreement is valid, and how best to proceed when filing for a high asset divorce in Ohio. If you’re preparing to file for divorce, I can help you through the process. Contact my office today.