There are very few limits to what love can make us do, but there’s no reason to lose our better judgment. As a business owner, you’ve probably spent years building your company into something profitable and growing your personal wealth. The last thing you need is for a divorce to leave you and your business vulnerable. A prenuptial agreement can protect you, your business, and your family.
Before We Say: “I Do”
Prenuptial agreements have negative connotations and a reputation for fending off would-be “gold diggers.” There is an element of truth to that, but it’s not something that you or your fiance should fear. After all, this is a mutual agreement. If your fiance finds something they don’t think is fair about the agreement, it will tell them a couple of different things: that you are serious about your relationship and you care about the impact a potential divorce can have on the immediate world around you. Prenuptial agreements are also more common than some people might think and are likely to gain popularity because they’re practical and smart ways to protect your financial security.
Considerations For Business Owners
A well-rounded business usually has partners or other stakeholders to consider whenever a business owner must make a large financial decision. Marriage is one of the biggest financial decisions anyone can make, so it stands to reason that one is more than likely to impact the other. A prenuptial agreement can be customized to protect your interests, as well as the interests of your business partners. Depending on how your business’s operating agreement or licensing is structured, you could leave them vulnerable to divorce proceedings. For example, if your shares in the company are not protected, they might be treated like the rest of your assets and split between you and your ex-spouse.
Second Time is the Charm
On a personal level; you may have experienced the devastating effects of a previous contentious divorce. Even if it wasn’t contentious, there may be things about your previous marriage that can be avoided in the new one. For example, you may want to avoid being held responsible for your spouse’s debts and liabilities. Not even the former President of the United States, Barack Obama, was immune to the effects of student loan debt. Discussing a prenuptial agreement with your fiance is the perfect way to open up about your expectations of marriage and what your individual responsibilities will look like.
Prenuptial Agreements Can Be an Act of Love
A prenuptial agreement is not an indication that you don’t love or trust your fiance. In fact, it’s the opposite. Regarding the previously mentioned liabilities, you may also want to protect your future spouse from your own debts and fiduciary responsibilities. If you have children from a previous marriage, a prenuptial agreement can also protect their promised inheritance, especially if you haven’t updated your estate plan prior to your death. The prenuptial agreement will ensure that your children’s assets are protected and distributed according to your wishes rather than state law or your old estate plan.
Creating a prenuptial agreement can also eliminate the financial concerns from a relationship, and give you the opportunity to focus on what really matters; your love for one another. Getting your spouse on the same page about protecting each other’s financial future is a beautiful way to start a marriage. If you want to know how a prenuptial agreement can protect the wealth that you’ve built and your business, call our office at 202-499-5160 to schedule a consultation.