Protecting business owners with prenups
When Missouri entrepreneurs decide to get married, they may be concerned about the future of their businesses. A growing number of tech startup founders and other business owners are rediscovering the importance of a prenuptial agreement. Once considered by many to be a realm reserved for the ultra-wealthy or celebrities, prenups are particularly important for business owners. As people choose to marry later in life after establishing successful careers, they can benefit from thinking about a potential future separation. Of course, some couples prefer to avoid prenups, as they don’t want to think about divorce before they marry.
On the other hand, given the percentage of marriages that end in divorce, people may consider prenuptial agreements a form of an insurance policy. Business owners in particular have a lot to be concerned about. Privately held companies may increase dramatically in value if a big breakthrough comes during a marriage. As a result, the company may be split up or even sold off during a divorce, as one spouse would no longer be able to buy out the other. Some angel investors even decline to finance tech startups where the founders are not protected by a prenuptial agreement that ensures continuity of the business.
A prenup isn’t intended to provide value to only one partner. Indeed, for an agreement to be upheld in court, it is important that both parties are properly represented and receive some consideration in the prenuptial agreement. These agreements help people deal with major asset division questions years in advance.
Business owners have some unique concerns when it comes to marriage or divorce. The future of their companies may be at stake in the property division process. A family law attorney may help entrepreneurs prepare for the future and protect their assets.