How a Prenuptial Agreement Can Protect Your Business in a Divorce

As a business owner, your company is likely one of your most significant assets. However, in the event of a divorce, your spouse may be entitled to a portion of your business's value. This can be a devastating blow to your finances and your company's future. Fortunately, a prenuptial agreement can provide essential protections for your business.

Here are some ways a prenuptial agreement can safeguard your business:

1. Clearly Define Separate and Marital Property

A prenuptial agreement can clearly establish which assets are separate property (i.e., owned before the marriage) and which are marital property (i.e., acquired during the marriage). This can prevent your business from being considered marital property and subject to equitable distribution in a divorce.

2. Establish Ownership and Control of the Business

In a prenuptial agreement, you can outline the ownership and control of your business. This can include specifying who holds the majority of shares, who have decision-making power, and who will take over the business in the event of divorce or death.

3. Protect Against Debt and Liability

If your business incurs debt or liability during your marriage, your spouse may be responsible for a portion of it in a divorce. A prenuptial agreement can protect your spouse from assuming this debt and liability, preserving your business's financial stability.

Sarasota Divorce Lawyer

A prenuptial agreement can be a valuable tool for protecting your business in a divorce. At Schipani, Norman & McLain, P.A., we understand the importance of safeguarding your assets and can help you create a comprehensive prenuptial agreement tailored to your unique needs. Contact us today at (941) 499-8154 to learn more about our family law services.