Pre- and postnuptial agreements are very common among business owners, because business owners are used to the idea of agreements predicting the future. In a situation where business owners are getting married and want to have a prenup, it is advisable to work with an attorney who is familiar with how to address business interests in a legally binding pre-marital contract. Similarly, business owners who are already married can benefit from working with an attorney when drafting a postnuptial agreement.
Regardless of whether Alpharetta business owners are engaged or already married, they can benefit from a prenup or postnup. Let one of our attorneys help you understand the benefits of prenups and postnups for business owners in Alpharetta.
One of the first steps in creating a legally enforceable post- or prenup is examining the business’s operation agreement and laying out the specifics. A couple does not have to decide to stop doing business together if they don’t remain married. Instead, they can refer to the operation agreement in a post- or pre-marital contract and determine how their business would continue to run post-divorce. Our lawyers are well-versed in how to use an operation agreement to construct an effective and comprehensive pre- or postnuptial contract.
If one spouse is a partner to a business and owns 50 percent of it, it will be necessary to determine what portion of that 50 percent the other spouse is entitled to in the event of divorce. A judge must determine how much the business is worth and how much of that the non-owning spouse is entitled to receive upon divorce, if any. If that is a large amount, it will have to be taken out of the operational fund, which can completely tank a business in the event of a divorce.
Because of the uncertainty and what is at stake, a lot of small business owners in Alpharetta have their spouses enter into pre- and postnuptial agreements to keep the business completely separate from their marital estate. This also protects the business partner who isn’t in the marriage, because they didn’t want to be in business with their colleague’s spouse. Many times, the other shareholder will ask to see a prenup before their business partner gets married.
It’s also worth noting that pre- and postnups can also protect the non-business owner spouse, or the non-earner spouse. If you decide to stay home and be a full-time parent, you and your spouse are making the decision together to give up an earning capability. If you’ve already had these discussions pre-marriage, it’s in your best interest to negotiate what will happen if the marriage does not work, because your spouse will have a much greater earning capacity than you.
For example, a non-earning spouse can request their business-owning spouse to supply them with enough income to put themselves through college or start their own business post-divorce. pre- and post-marital contracts allow you to have these discussions while you’re making those decisions so there isn’t a big disagreement about the contract you made about someone staying home.
A lot of times, business owners want to keep some of their finances separate from their spouse for various reasons. Pre- and postnups give couples an opportunity to circumvent the uncertainty of property division in the event of a divorce and allows them to separate and account for their business interests without dissolving the business. To learn more about the benefits of prenups and postnups for business owners in Alpharetta, connect with one of our attorneys today.