Partner
As a business owner, you would never sign a contract that put your company at risk. But that is exactly what happens when you say “I do.” without a prenuptial agreement in place.
Under New York law, getting married can turn your life partner your business partner unless you take steps to protect your financial interests. If you ultimately split up, your business could be on the chopping block when you get divorced.
At Aiello & DiFalco LLP, we help Long Island business owners safeguard their companies and investments from marital strife by crafting customized prenuptial agreements.
Why Prenups Are Important if You are a Business Owner in New York
It has taken years of hard work to build your business to what it is today. And you are grateful that you have the opportunity to share your success with someone you love. But without a prenup in place, you are putting your future at risk.
If your business grows or appreciates in value during the marriage, and your relationship sours, your partner could take a portion of your business as part of their divorce settlement. This is thanks to New York’s equitable distribution laws, which fairly divide anything considered marital property during a divorce.
Putting a prenup in place can protect your business by:
- Specifying how appreciation in value or future contributions to the business will be treated.
- Assessing its current value (if possible or beneficial) and defining the value of the business as separate property that is being brought into the marriage.
- Identifying the current business owner(s), which may include business partners or investors who do not want their stake in the business watered down.
On the flip side, a prenup can also protect your future spouse by identifying debt that is tied to the business so they are not saddled with it in the future.
These are critical topics to address even if you never get divorced.
Prenups Lay the Foundation for a Future Together
It’s natural to worry about how your future spouse might perceive the idea of a prenuptial agreement. But having a frank conversation about your financial future is an important part of starting your life together. If you can’t comfortably discuss the opportunities and challenges you face now, it is not going to get any easier down the road.
If you need help with this, consider:
- Highlighting Your Shared Goals: Emphasize that the prenup is about protecting both of you and creating a foundation for open communication.
- Involving Neutral Professionals: Suggest working with experienced attorneys — like those at Aiello & DiFalco LLP — and financial advisors to ensure the agreement reflects both partners’ interests.
- Timing Matters: Bring up the idea early, so your partner doesn’t feel blindsided as the wedding date approaches.
Dedicated to You & Your Family in Your Time of Need
Drafting a prenuptial agreement isn’t about planning for failure—it’s about safeguarding your future and the people who depend on your business. By taking a proactive approach, you demonstrate foresight and respect for both your partner and your enterprise.
The Aiello & DiFalco team is ready to help facilitate a conversation between you and your future spouse about why a prenup is important and what you both might want to include in one. Contact us today to schedule a consultation.