Owning your own business likely allowed you to feel a sense of accomplishment. You might treat your company with pride and affection, and as a result, you may feel protective when it comes to any negative impacts that could potentially harm your business. Any time a new business partnership or other arrangement came up, you undoubtedly took the time to create contracts to reduce the risk of unexpected fallout.
Because outside factors can also have effects on your company, applying your business mindset to other areas of life may prove useful. Therefore, you may want to consider how writing your business into a prenuptial or postnuptial could help protect your company from negative divorce outcomes.
Uses of a prenup
A prenup can offer various protections for both parties involved. This document can address property division, alimony and other aspects that often come up for discussion in the event of divorce. If your agreement has the correct details and information, it could allow you to bypass state laws regarding property division and stick only to the terms of the agreement.
As a result, this document could help ensure that you do not lose half of your business or related assets due to state laws dictating equitable distribution of marital property. However, creating the document in the correct manner could prove difficult, and therefore, you might want to ensure that you follow the appropriate procedures when writing your business into the prenup/postnup.
As a businessperson, you certainly understand the importance of the creation process when drafting a contractual agreement. Many of the same elements of a business contract go into a prenup, such as:
- Getting the agreement in writing
- Both sides voluntarily agreeing to terms
- Providing full disclosure
- Providing realistic terms
If you attempt to use a prenup to protect millions of dollars in assets while only allowing your spouse to obtain the smallest fraction of property possible, the court will more than likely invalidate the document.
If you have already married and did not create a prenuptial agreement, you still have options. A postnuptial agreement comes after marriage but offers the same asset protections as a prenup. The postnup must also contain the same necessary elements of a prenup.
In order to ensure that your prenuptial or postnuptial agreement contains all the necessary elements and protects your business as best as possible, you might want to have an attorney review the document and assist in its drafting. This important step could help prevent disputes in the future. If you’d like legal guidance in writing your business into a prenuptial or postnuptial, contact us today.