The Need For A Prenuptial Agreement For Business Owners
No one is looking for a divorce, and when they are, no one wants an expensive divorce. However, a prenup can be valuable when both parties or one of them owns a business. If you start a business before marrying, you don’t want your business to become marital property. There are occasions where your business becomes subject to distribution in cases of divorce. However, a prenuptial agreement can save you the whole process of fighting for your business. It is a wise investment of money for those who want to marry. It gives you a greater certainty in occasions where a separation eventually happens. The top divorce lawyers in MA can help you draft a prenup to protect the assets you bring into the marriage.
Although no one gets into a marriage to eventually divorce, it’s only wise to consider the possibility. This consideration is even more crucial if one of the parties is a business owner. There’s usually a stigma that surrounds prenuptial agreements. Most people believe that drafting a prenuptial agreement shows you already anticipate divorce before the marriage begins. However, business owners must consider a prenuptial agreement, and below are some reasons why.
It helps establish your business value at the beginning of the marriage
Although the additional value gained during the marriage is subject to division, a prenup enables you to protect the value of your business beforehand. That value will not be subject to distribution in case of a divorce.
It helps determine what happens with your business appreciation and depreciation.
In cases where your business suffers loss or profits, a prenuptial agreement makes it clear if your spouse will share in them. This consideration could include the contribution of your spouse directly and indirectly to your business. A well-drafted prenuptial agreement by top divorce lawyers in MA also considers if they invested capital into your business.
States how your business is valued
When you come to an early agreement, it will help you determine the value of your business at the time of divorce. It will save you the stress and expense of another evaluation process. It saves you stress imposed on your employees when people come on-site to evaluate your finances.
Defines the percentage your spouse is entitled to in cases of divorce
A well-drafted prenuptial agreement by top divorce lawyers in MA helps determines the percentage your spouse is entitled to. It helps to save you the stress of subjecting your business to distribution guidelines of other assets. If you agree to give them 20% of your business, they receive that upon divorce. This agreement doesn’t take into consideration other marital assets and the distribution process.