Your business is an essential part of your life and your livelihood. You have worked hard to provide for your customers while building an income stream for yourself and your loved ones, and perhaps something to pass on to future generations.
When you get married, you do not plan to get divorced. Unfortunately, a messy divorce could have a devastating effect on your business.
This is why a prenuptial agreement could help you protect your business and its assets.
Just in case
Often, prenuptial agreements get a bad reputation because couples see them as planning for divorce. Avoiding a prenuptial agreement may be fine, as long as the marriage works out. Unfortunately, if the marriage does not stick, the lack of agreement could cause significant problems. As well, the unexpected death of a business owner can also leave the surviving business participants with unanticipated financial consequences.
Rather than seeing the agreement as a plan for failure, it helps when couples see the prenuptial agreement as a plan for success whether the marriage ends in divorce or at the death of a business participant. Like other safety mechanisms, it is okay to have the safety of a prenuptial agreement while also hoping that it is unnecessary.
Added support for your business
When the marriage of a business owner ends, whether by death or divorce, costly business valuation measures often have to be employed, even if there is no realistic way to sell the business or liquidate its assets. As well, the prospect of liquidating a business is seldom realistic. It often means the participant would lose not only the assets held by the business, but also his or her source of income.
When you have a prenuptial agreement to plan for what will happen to the business if you get a divorce, it removes the uncertainty. You, your partner and your business partners can have the confidence that comes from a well-structured plan.
When your business (and marriage) is ready for anything, you can protect your future. A prenuptial agreement can help you make sure your company will survive, even if you get a divorce.