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Protect a business with a prenuptial agreement

On Behalf of | Oct 13, 2017 | Prenuptial Agreements

As you approach marriage, there is often something intoxicating about joining your life together with another person and building a future together. This joy, however, may be short-lived, especially if you do not protect each spouse’s most precious assets. The greater the assets held within the marriage, the more strain that often comes to the marriage, so it is always wise to consider a prenuptial agreement.

This is especially important for individuals who own a business or believe they may start a business while they are married. In Texas, a business may count as marital property in a divorce, which could mean that the entire business (or the portion owned by a divorcing spouse) may be up for grabs in property division.

A prenuptial agreement can alleviate any tensions surrounding the safety of the business in the event that the marriage falls apart. Not only does this create a clearer path to success for the business because it is not constrained by the health of the owner’s marriage, but the marriage itself does not bear the pressure of how its own success or failure may affect the business. Every time you and your spouse have a disagreement, you don’t want to be thinking about how it could affect your business. This is simply not good for marriages or businesses.

In order to avoid this tension, it is good for all parties to create a prenuptial agreement that keeps the business off the property division table in the event of divorce. This does not necessarily mean that the other spouse simply gives up a potential windfall if divorce occurs.

The agreement can outline fair terms for compensating the nonowning spouse fairly while keeping the business safe. In this way, the marriage has the freedom to grow at its own pace, without the burden of the business weighing on every conflict or victory. An experienced attorney can help if you believe that a prenuptial agreement is a good fit for you and your future spouse.

Source: findlaw, “3 Ways to Protect Business Assets in Divorce,” accessed Oct. 13, 2017