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Business owners should have a prenuptial agreement for protection

On Behalf of | May 12, 2020 | Prenuptial/Postnuptial Agreements

If you live in Maryland and own a business, you may face certain risks if you get married. For example, you could lose a part of the company and some control in the event that you get divorced. This is exactly where a prenuptial agreement can help you.

What a prenuptial agreement can do

A prenup can give you some certainty ahead of time. Once you get married, the business might become part of the marital estate and be subject to the division of assets in a divorce proceeding. The prenuptial agreement can state upfront how much, if any, of the business your spouse would receive in the event of a divorce. This agreement could also provide a valuation of the business right now in case it becomes necessary in a divorce. Moreover, it can specify your spouse’s role in the business.

More people are signing prenuptial agreements

In the past, many couples were hesitant to even discuss this type of agreement. The thought of dealing with a potential divorce before the vows were even taken turned off many spouses.

However, more people are beginning to realize that a prenuptial agreement can provide a degree of certainty and protection. This cuts down on the level of bitterness associated with a divorce and allows for people to have peace of mind when they bring assets into a marriage.

Having a professional draft a prenup

To draft and negotiate a prenuptial agreement, you may want to see a divorce attorney. It’s usually best not to handle this on your own because the agreement needs to be able to survive scrutiny if it’s ever challenged in court.

If a mistake is made, the entire agreement could be struck down. In addition, an attorney may be able to handle this delicate topic with the tact that’s required to keep both spouses on the same page.