If not handled appropriately, divorce can tear apart the lives of spouses, instead of allowing them to respectfully go their separate ways. As awful as that is, if one or both spouses are business owners, their divorce may cease to be merely the dissolution of their marriage — it can also mean that their business is subject to division like so many other things that are considered marital assets in Texas.
If that occurs, the livelihoods of any employees of the business are in the hands of whoever is charged with creating an agreement for the equitable division of assets and liabilities. The good news is, with a little foresight and planning, it doesn’t have to be this way.
Many Americans take an unfavorable view of prenuptial agreements, believing that they are a tool used by the rich and famous to undermine their marriages before they even start. Try telling that to the hundreds or thousands of employees who have had their jobs spared by a well-crafted prenuptial agreement. In Texas, as in many other states, a business can be divided as a marital asset if proper precautions have not been taken to preserve the business.
If you are a business owner who is entering into a marriage, or if you are approaching marriage and believe you may start a business at some point, a prenuptial agreement may save you a great deal of heartache if the marriage ever dissolves. A properly crafted prenuptial agreement can establish asset division terms that allow the business to remain intact, sparing the business and potentially many employees lives from being subject to the whims of the marriage. This can even help the marriage itself by removing the business from being dependent on it, and thereby eliminating at least one source of relational stress.
No one gets married planning to get divorced, and certainly no one goes into a marriage wishing to see his or her partner’s dreams destroyed. If you believe a prenuptial agreement may be right for you, an experienced attorney can help you craft the perfect document for your relationship.
Source: Findlaw.com, “3 Ways to Protect Business Assets in Divorce,” accessed Sep. 23, 2016
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