A prenup may help save your family business

On Behalf of | Oct 27, 2020 | Prenuptial Agreements |

When you are ready to join in wedlock with the love of your life, you may not want to sour the moment by bringing up the subject of a prenuptial agreement. If, however, you are a part of a family enterprise, a prenup may help protect both your business and its co-owners.

As noted by Business Insider, a prenup may make a significant difference in the future of your business if you are bringing to your marriage an existing ownership. If your marriage dissolves, a prenup may define your share of the family enterprise as separate property. This could serve as a deciding factor if an ex-spouse attempts to assert his or her rights to a share of the family business.

An involved or nonworking spouse may assert a claim to a family business

If your spouse contributed in some way to your business, he or she may assert a right to a share of its proceeds under Florida’s equitable division laws. A nonworking spouse may, for example, claim that his or her domestic assistance made it possible for you to devote time to your business pursuits.

As noted by Business.com, a prenup may clarify an enterprise as your separate property even if your spouse was directly involved in its daily operation. Without the predetermined clarification provided by a prenup, however, a Florida court may decide what determines an equitable property split during a divorce.

A prenup may serve as a realistic insurance policy

Although you may never need to rely on the terms of a prenup to protect your business, the fact that it exists could help provide peace of mind. It may also help assure other business stakeholders, such as partners and investors, that a divorce does not lead to a disruption or ownership change.