How Can I Protect My Business Interest in a Marriage?
Some ways to proactively protect your business and your interest include prenuptial agreements, postnuptial agreements, and buy/sell agreements for community property interests.
While no one wants to go into a marriage contemplating a divorce, it really is in your best interest to plan for the “what ifs” when you have a successful business you need to protect. A prenuptial agreement will help you do just that. It is an agreement made by two engaged parties wherein they address how assets will be divided in case of divorce. You are able to state in this agreement whether the business is even considered marital property and, therefore, whether it would be subject to division.
A postnuptial agreement operates much like a prenuptial agreement, with the only difference being that it is entered into after marriage rather than before it. These, however, are less reliable in application the prenuptial agreements.
A buy/sell agreement is a way to establish how your spouse's interest in the business would be determined in case of divorce. You can also specify the amount of a cash award the spouse would receive for their share of the business in the event of a divorce. This type of agreement ensures that you will be able to keep your business.
You may also be interested in:
- What is a Divorce?
- What Reason Do I Have To Give To Get Divorced?
- How Does Divorce Work if We Live in Different States?
- What is a Legal Separation?
- Is Divorce Different if There is a Business?
- How Can I Protect My Business During a Divorce?
- What is Community Property?
- What is Separate Property?
- How Much Spousal Support Am I Entitled To?
- What Does Child Custody Mean and How Does it Work?