Is a prenup the best way to save your business from divorce?

On Behalf of | Mar 23, 2018 | divorce |

It may prove impossible to save your marriage from divorce. If your spouse won’t relent and wants to split up, you can’t stop it. Divorce can happen, even without your consent.

With that in mind, you may be worried about your business. You’ve put a lot of time, money and energy into your company. Is the divorce going to deprive you of the capital and assets you need to keep it going? Could the divorce end your marriage and your company at the same time?

If you’re worried, one of the best things you can do is to sign a prenuptial agreement before you get married. Make it very clear that you are the only one with any stake in the company. Your spouse gets nothing. Other assets — your home, your cars, your personal bank accounts — can be divided between the two of you, but the business is yours alone.

Signing this document before the marriage takes any question out of the process. You don’t have to worry about what may happen; you already know, as long as the prenup was drafted, signed and filed correctly. Your company will move forward even when the marriage ends.

Perhaps you’re already married, you didn’t sign a prenup, and now you’re worried. If so, you may want to consider a postnuptial agreement. It can do many of the same things, but you can sign it after the wedding. Even if you’re not sure that you’re getting divorced yet, it may be wise to have a safety net in place.

As you and your spouse move toward divorce, make sure you really understand all of your legal rights and the options you have to protect your company and other important assets.

Source: INC, “How to Protect Your Business in a Divorce,” Jeff Landers, accessed March 23, 2018