You need a prenuptial if you own a business

On Behalf of | May 8, 2020 | Divorce

California is home to some of the most innovative technology businesses in the country. If you own one of these businesses and you get married, the company could be at risk if your marriage is ultimately not successful. This is why you need to negotiate and sign a prenuptial agreement before the marriage so that your business can be protected.

What a Prenuptial Agreement Does

In essence, a prenuptial agreement will decide before the marriage what happens to the property in the event of a divorce. This is vitally important when you are bringing a business into the marriage. The agreement can state that the business remains yours or that a certain percentage will go to your spouse if you get divorced. There are many other issues pertaining to the business that can be subject to a prenuptial agreement such as your future spouse’s role in the company. It can also help value the business before the marriage happens and will address the increase in value.

The Importance of a Prenuptial Agreement

Many people do not want to discuss a prenuptial agreement because they do not want to think about divorce before the marriage even begins. However, more people are willing to talk about this type of agreement now than a decade ago. This is becoming a more accepted solution as people learn the hard way about the risks of not having a prenuptial agreement in place before the marriage.

A divorce attorney could help you when it comes to a prenuptial agreement. This is often a delicate topic between the spouses, and this type of agreement needs to be handled with care. An attorney can help draft an agreement that protects their client’s interests. Each spouse would need their own attorney when it comes to negotiating the prenuptial agreement. The agreement needs to be balanced so it is important not to overreach.