When business owners get married, they’re sometimes a bit concerned because the business is this major asset that they’ve put so much time and money into over the years. They hope that the marriage works, but they don’t want to risk losing any portion of that business if they do get divorced.
Now, the business may be a separate asset if they started it before they got married and their spouse has no ownership, but that doesn’t always guarantee that 100% of their earnings will stay with them. There are cases in which a spouse can claim a portion of the increased value of the business if that growth happened while they were married. So, what can you do to make sure that everything that has to do with the business stays with you?
Drafting a prenuptial agreement
The key is simply to set up a prenuptial agreement in advance. You get your spouse to acknowledge that the business and all assets are yours and will stay with you regardless. You can make this as comprehensive as you want, and it may include other assets. It should certainly address things like future growth or an increase in the value of the business on the whole.
People are sometimes concerned about prenuptial agreements because they think it shows that they want to get divorced. But if you’re a business owner, it’s not about showing that you want to split up. It’s just about acknowledging that it may happen and that you need a contract to protect your company if it does. Make sure you know exactly what steps to take to get everything set up.