Valentine’s Day is a day dedicated to romance, love, and affection, making the day a very popular one to get engaged. In fact, according to a report from American Express, six million couples will get engaged on Valentine’s Day. But lost in this swirl of happiness and love is the hard reality that 40-50% of American marriages end in divorce.
Divorce can be a painful experience for anyone to manage, but when you own a business, divorce can be devastating. At Kennelly Business Law, we counsel our clients to be logical and practical when entering into marital bliss and protect their business and assets from the terrible circumstances that can result from divorce.
Prenuptial agreements can get a bad reputation and be perceived as a tool to prevent your partner from receiving what is due to them upon divorce. Further, many people think that only the very wealthy should have prenuptial agreements. The reality, however, is much different.
A prenuptial agreement outlines how assets are to be disbursed upon divorce, including your business. For many folks, a prenuptial agreement really isn’t too far removed from a last will and testament – the agreement usually provides the benefit of avoiding a court making decisions about your assets for you.
A main reason for this type of agreement is that in the event of a divorce, you want to keep your business or business assets, and your business partners don’t want to end up partners with your ex-spouse. To responsibly approach this subject and ensure the agreement is legally binding, both you and your fiancée should be represented by your own attorneys and both must disclose your assets and financial condition as develop the agreement.
Even with a prenuptial agreement, you may still be ordered to pay spousal support following a divorce (alimony), unless in the agreement your spouse waives their right to spousal support. Importantly, you cannot give up your obligation to pay child support in these agreements either, which is required by law.
The right time to enter into a prenuptial agreement is before you get married, but, don’t wait until the week before the wedding – these agreements can take time. If you’ve already gotten married, don’t worry; our team has experience putting together postnuptial agreements that function relatively similar to an agreement before marriage.
While some may look down upon prenuptial agreements, they are really just a responsible tool for planning in business. At Kennelly Business Law, our team of experienced attorneys can help you with this type of planning or any other aspect of business law. Contact Paul Campbell at firstname.lastname@example.org or any of our experienced team members at 701.478.4900 today to learn more!