As a business owner, getting a prenup before marriage is not just a good idea but crucial. A prenup can protect your pre-marriage business from becoming community property in case of divorce. Without a prenup, any appreciation in your business's value during the marriage may become community property in Nevada, meaning your spouse could be entitled to a share of your business. This could threaten your business's future or force you to sell it to pay for the divorce settlement.
Reasons for Getting a Prenup
Valuing a business during a divorce is both expensive and intrusive. The court may require a business valuation, which can involve scrutinizing your company's finances and even interviewing employees or business partners. This type of investigation can create unnecessary stress and conflict for everyone involved in the business.
Additionally, if you are the breadwinner in your marriage, the judge may require you to pay for some or all of your spouse's attorney's fees during the divorce proceedings. This can further strain your finances and put your business at risk.
Benefits of a Prenup
A prenup can also outline what will happen to your business in case of your death. For example, if you have children from a prior relationship, a prenup can ensure that your assets, including your business, will go to your children and not your spouse or their children. A prenup is especially important in blended families where inheritances and ownership can become complex.
When people hear the term "prenuptial agreement" or "prenup," they often assume it's only purpose is to prepare for a potential divorce. However, while a prenup is helpful in the event of a divorce, it also serves other purposes, even if there is never a divorce.
Here are a few uses for a prenup that do not involve divorce:
- Protecting against debt: If one spouse has significant debts, a prenup can protect the other spouse from being responsible for their spouse's debt if creditors ever try to collect. Examples include medical bills, judgments, and more.
- Transparency about financial situations: A prenup requires both spouses to disclose their assets, debts, and incomes. This transparency ensures that each spouse understands the other's financial situation before marriage.
- Clarifying financial responsibilities: A prenup can clarify financial responsibilities during the marriage. For example, a prenup can specify how expenses will be divided, who or how the mortgage/rent will be paid, or how debt will be paid. This can help prevent misunderstandings or disagreements down the line.
- Estate planning: A prenup can be used as part of your estate planning strategy. By specifying how assets will be distributed in the event of your death, you can help ensure that your wishes are carried out. This is especially relevant if you have children from previous relationships or family members you financially support.
Contact a Prenuptial Agreement Lawyer
In summary, if you own a business, get a prenup. A prenup can help safeguard your business, family assets, and financial future. It can also minimize the potential conflicts and stress of a divorce. With a prenup, you can focus on growing your business and building your future with peace of mind. It is best to consult with a qualified attorney who can guide you through the process of drafting a prenup that meets your specific needs and protects your interests.
Call our prenup attorneys at (702) 996-6052 or contact us online today to get started with a consultation.