Can you protect your business with a prenuptial agreement? What happens to a business you own prior to marriage in the event of a divorce.
The first question a business owner should ask prior to entering into a marriage (from a business point of view) is “Can I keep a solid wall between the business and our marital assets?” If so, you should be able to preserve the asset as “separate property” in the event of a divorce. Separate property is not divided between former spouses in the event of a divorce.
The reason to protect your business with a prenuptial agreement is to safeguard all of the hard work and investment you’ve made to build a company. If you have met the person you believe you will share the rest of your life with your relationship should be able to sustain healthy conversations about any topic. Your ability to honestly confront challenges and work through them as a couple is a strong indicator of the potential for a good marriage.
Proposing to protect your business with a prenuptial agreement is not just about protecting your own interests. Your spouse-to-be will also be exposed to potential risks regarding debt and contingent liabilities which might arise throughout the course of the life of the business. This is why it is important to seek the advice and counsel of the divorce and family law attorneys at Dodd & Dodd. We can help to facilitate a conversation with your significant other and ultimately craft a prenuptial agreement which protects everyone’s interests.
In effect, you are protecting your spouse-to-be and you’re the marital property and assets you build as a couple from the genuine risks of business. A fair and straightforward prenuptial agreement combined with a commitment not to commingle marital assets with the business serve to protect the business, enhance it’s potential value and safeguard the future you will be building as a married couple.
Protect your own interests and get your married life off to a great start. We invite you to review the strong recommendations of our clients and the legal industry and contact us or call 502-584-1108 to schedule an appointment for a remote or socially distanced consultation with one of our experienced Divorce and family law attorneys.
