Some New York residents may wait until they have reached a successful career point before getting married. However, after obtaining a certain amount of wealth or seeing their businesses reach a milestone, individuals may feel concerned that they could potentially lose some of their hard-earned wealth in the event of divorce. Luckily, prenuptial agreements could help protect those assets.
For business owners, creating a prenup could keep a spouse from staking claim on the company unjustly. Of course, in order to protect the asset as best as possible, the terms of the agreement need to dictate how the company should be addressed during property division proceedings. Because this type of agreement can be tricky to create, interested parties may with to gain professional assistance.
Of course, owners may also need to take additional steps to ensure that the company does not become considered marital property. Individuals may want to refrain from commingling personal and business expenses, and they may wish to keep their spouses out of the company as much as possible. If a spouse has a hand in helping with the finances or other aspects of the business, it could become divisible property.
There are also other methods that business owners could take in order to maintain ownership of their company in the event of divorce. However, prenuptial agreements could be a valuable precautionary step to take before getting married. New York residents who are interested in creating a valid agreement should consult with their legal counsel on how to carry out such an action in an effective manner.
Source: tgdaily.com, “3 Ways to Protect Your Business from Divorce“, Ian Reading, May 10. 2017