As a business owner preparing for a new marriage, you have many considerations regarding your future.
While you hope your business stays successful and your marriage lasts, neither comes with a guarantee. According to CDC, more than 630,000 people divorced nationwide in 2020. If you join those statistics, having a prenup provides protection for both you and your future spouse.
1. Business equity
Once married, you and your spouse become one in the eyes of the law. If the marriage ends, you may have to split any shares or equity you have in your business. What you have built has the potential to become marital property. A prenup allows you to define and separate your business and shares to ensure that your assets remain your assets.
2. Debt responsibility
Debt factors into a marriage in two ways. Whether a startup or an established business, you likely have loans or other debt associated with the business. If the time arrives to divorce, your spouse may get stuck with some of your business debt. On the flip side, if your spouse has racked up some debt, your business may feel the brunt of paying that back. When developing a prenup, you can work with your future spouse to create a solid framework for dealing with any potential debt.
3. Support mitigation
Every divorce has its unique elements. Even if you have an amicable split, you may want to think ahead about how much spousal support you want to give. Prenups allow you to mitigate court-determined support.
Although prenuptial agreements have some negativity associated with them, the benefits they provide both sides make getting one worth considering.