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A prenuptial agreement can protect your business

Feb 5, 2020 | Divorce

If you own a business in West Virginia, you need to take steps to protect it from anything that could take that company from you. Divorce is one thing that could threaten your interest in and control of your own business. Signing a prenuptial agreement before the marriage is one way to safeguard your business and gain certainty.

What a Prenuptial Agreement Does

A prenuptial agreement will state ahead of time what happens to your assets in the event that you get divorced. It could say that your business remains with you in its entirety or that your spouse will receive a certain percentage of it. The agreement can also give the business a valuation to use as a base in case of a future divorce. In addition, the prenuptial agreement can also specify your spouse’s role in the business and your ability to keep earnings in your business as opposed to withdrawing them.

The Risks of Not Having a Prenuptial Agreement

Once you are married, your business becomes a part of the marital estate if you do not have an agreement in place. This means that a court may award your spouse a part of the business that you had before the marriage. You may also be ordered to pay your spouse a percentage of the increase in value of your business that occurred during the marriage. This can add up if your business becomes more valuable.

A divorce attorney may help you negotiate and draft a prenuptial agreement. It is vital to get professional help because an attempt to do this on your own can lead to a situation where the agreement is unenforceable. These agreements are often challenged in court when it comes time for a divorce. A divorce attorney could assist with an agreement that is able to withstand scrutiny in the future and can give you peace of mind.