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Implementing a contract to protect your business from divorce

| Jun 9, 2020 | Divorce

Discussing the possible dissolution of your marriage may seem negative and unnecessary, but it can actually be quite beneficial. Implementing a prenuptial agreement to clarify outcomes of certain decisions may lessen the impact that divorce has on your livelihood if your marriage comes to an end.

Prenuptial contracts are especially beneficial if you own a business. Without the application of such a contract, you may lose critical support for your organization if a divorce happens between you and your spouse.

Divorce sans contracts

If there is no contract stating the outcome of your business, important decisions will fall to the courts. Negotiations about the separation of assets, monetary contributions and even the business itself may leave you feeling out of control. If not strategically made with objectivity and flexibility, your divorce may end up costing you your business. While there are still ways to protect your business and its assets during divorce without a contract, having a legal agreement will amplify your effort to keep control of what is important to you.

Implementing a prenuptial

According to Forbes, a prenuptial agreement allows you to make determinations about things such as what is marital property, whether or not your company will be a separate property altogether and how negotiations will proceed if you or your spouse chooses to buy the other out. These decisions, made without the stress or strain that often accompanies divorce, may provide invaluable support and protection for the company you have worked so hard to build.

When you take adequate precautions to protect the entities you have built, you may have the peace of mind that divorce will not destroy your livelihood. If you would like to learn more about the relationship between your business and your divorce, please visit our webpage.