When you work hard to build a business, you don’t want anything to rip it away from you. One way that you can protect yourself and your business is to ensure that you have a prenuptial agreement in place if you decide that you’re going to get married.
There are a few points that you have to consider when you’re getting the provisions for the prenup in order. Having everything covered is important so that you know the business is protected if something happens in your marriage and it comes to an end.
What specific provisions should you consider?
You need to consider the classification of the company, but don’t forget to include how the appreciation of the business will be classified. Ideally, you’ll be able to include a provision that treats this appreciated value as a premarital asset so it isn’t subject to division. Without the classification as premarital property, you could lose 50% of the appreciation value if you divorce.
How else can you protect the company?
You also need to ensure that you’re keeping detailed records for the business. This is important because you need to be able to show what the business was worth before the marriage. It can also be used to show that business assets never comingled with marital ones.
Your attorney can help you to draft the prenuptial agreement. However, your betrothed should have their own attorney review it. This helps to ensure that both parties have adequate representation of their rights during the process of coming up with an agreeable and enforceable prenup.