Protecting a business from divorce is a touchy subject
On behalf of Pedrick Law Group, APC posted in divorce & family business on Tuesday, April 2, 2019.
People with a lot of assets in their name may not think of a prenuptial agreement or other protections in the case of divorce. But business owners almost always think of what could happen to their sources of pride and income. Protecting a business from divorce may mean more than personal success. It could matter to employees, vendors and clients alike.
Prenuptial agreements are far from the most romantic aspects of marriage, but it can be one of the most important even without either spouse ever considering divorce. Talks about these agreements are often awkward discussions between engaged people, but the point can be made that the health of a business is important to many people.
The spouses who do not think of a prenuptial agreement may feel like they only protect the people who ask for them. But some businesses can be split in either control or profits between spouses if it comes to it because the main point of protecting a business is making sure it remains intact. Spouses who are willing to consider another’s future while protecting one’s own interests will often be better heard.
Even without prenuptial agreements, there are options to protect businesses and their interests. Shareholder arrangements, partnerships and limited liability corporations may be legally protected, although a spouse’s interest or salary may be fair game in a property division.
An attorney can advise business owners on how to protect themselves in the event of divorce. Lawyers can also recommend how to bring the subject up in a constructive way that partners can appreciate.