It goes without saying that no couple ever gets married with the end in mind. Divorce is not a topic that soon-to-be spouses usually want to discuss. However, for business owners in New York, it may be helpful to consider the possibility of a marital breakup before tying the knot. In the event of a high-asset divorce, a prenuptial agreement can be a lifesaver.
Essentially, a prenuptial agreement is a contract between soon-to-be spouses that details how assets and liabilities are to be divided should a marriage dissolve. For business owners, this is vitally important. A prenuptial agreement can establish if the business is considered marital property and, if a divorce happens, how the assets of the business will be distributed.
A prenup can help protect a business by detailing:
- How much the business is worth at the time of the marriage and the value of the business at the time of divorce
- What percentage, if any, of the business the spouse would be entitled to.
- If spouses will share profits or losses from the business
- If spouses are business partners, which spouse would buy the other out
Every prenuptial agreement is different and can be tailored to address individual concerns. Once a prenup is signed and complete, it can provide a spouse with much-needed peace of mind knowing that his or her livelihood is protected.
Prenuptial agreements are something every business owner should consider before walking down the aisle. Although it may be a delicate subject to discuss with a future husband or wife, a prenuptial agreement can play a crucial role in maintaining a business amid a high-asset divorce. Individuals in New York who have questions about divorce may want to consider discussions with a legal representative. A seasoned attorney can provide clarity and help an individual protect his or her assets.