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If you’re a business owner, you know how much work has gone into building your business and ensuring that it thrives. You wouldn’t do anything to put your business interests at unnecessary risk — but marriage can do exactly this.
Putting a prenuptial agreement in place is a sensible choice for any engaged couple. When you’re a business owner, a prenup is particularly necessary for safeguarding your company regardless of what the future holds.
Understanding Prenuptial Agreements
Prenuptial agreements, commonly known as prenups, are a type of contract drawn up between engaged couples. The prenup helps lay out how assets will be divided if the marriage ever comes to an end.
Prenuptial agreements are essential for protecting wealth and high-value assets. However, they’re also practical even for couples who may not have significant assets at the time of their marriage.
These agreements don’t only apply to bank holdings and properties. Couples can choose to have a prenup to cover all sorts of matters, from pet ownership to royalty payments. This means that if you own a business, it’s wise to have a prenup and ensure it protects your long-term business interests.
How Prenuptial Agreements Can Protect Your Business
A prenup can help ensure that your business remains yours, no matter what happens in the future. Businesses are often put at risk during the divorce process.
Sometimes, a new spouse begins to take on a role in running the business or handles household responsibilities so the other spouse can focus on running the business. When a divorce happens, courts tend to view arrangements like this as an indication that the spouse has some right to the company due to their support.
When you include your business in the prenup, you draw a very clear distinction about what is and isn’t owed to your fiance if you ever divorce. You can even cover things like how asset division will be handled if the company’s value grows over time. A prenup protects your business’s economic success and ensures you maintain full ownership, regardless of marriage or divorce.
Business owners often make the assumption that a prenup isn’t necessary for protecting their business. This sort of mindset is a mistake. Your small business might grow to achieve unanticipated success a few years or decades from now. A disgruntled spouse might go after your business in a divorce simply out of spite.
Hopefully your business increases in value during the marriage, but that appreciation is considered a marital asset that is subject to equitable distribution unless you have a solid prenuptial agreement protecting your interests.
We also represent many individuals involved in family businesses where there are multiple stakeholders involved who would not want the business being evaluated and subject to distribution in the event of a divorce involving just one of the business owners.
Having a prenup in place that includes your business is a form of security that allows you to remain in control of the business you worked to build. When you maintain ownership, you can always choose to split your assets more generously during a divorce. However, if your business isn’t protected and a court gives half of it to your spouse, it can be financially disastrous — and there’s little you can do in such a situation.
Contact Our Garden City Prenuptial Agreement Attorneys Today
Plenty of family law attorneys handle prenups, but they don’t always have business knowledge. When you need your prenuptial agreement to protect your business, it’s important to choose a lawyer who understands the unique considerations that accompany running and owning a business.
Your lawyer also needs to have an in-depth understanding of how divorce puts a business at risk. Hiring an experienced lawyer with business knowledge is the most effective way of ensuring that all relevant matters are included in your prenuptial agreement.
Aiello & DiFalco is a family law firm located in Garden City, New York. Our skilled divorce attorneys have a long history of handling complex prenuptial agreements that cover high-value assets, business ownership, and similar concerns.
Contact Aiello & DiFalco today to discuss how one of our experienced attorneys can help ensure your prenuptial agreement keeps your business protected.