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How can a prenuptial agreement protect your business?

Finding the perfect partner to marry may be a dream held by most in San Antonio. Yet if you own a business, your pending engagement should also prompt questions about how your ownership may be protected should the marriage not last. While considering the possibility of a divorce even before you marry may seem odd and/or unromantic, you may also want to consider the time and effort that you have put into building your company. You would not be alone in your concerns; in fact, recent information shared by the Wall Street Journal shows that the American Academy of Matrimonial Lawyers reports a 63 percent increase in the number of prenup filings from 2010-2013.

The answer to protecting your business interests in the event if a divorce may come in the form of a prenuptial agreement. While a prenup may be seen as protection from your spouse being awarded shares of company stock as part of a divorce settlement, it can also provide your company with other forms of divorce protection. For example, if the value of your company increases dramatically during your marriage, you can protect the value of that appreciation by stating in your prenuptial agreement that your business will retain its status as a pre-martial asset even while you are married.

Another advantage that listing your company as a pre-marital asset in a prenuptial agreement provides is protection from debts that your spouse may incur during your marriage. If you clearly state that all debts remain separate, a creditor cannot come after your business assets if you divorce.

Yet for all of the protection that a prenuptial agreement can potential provide, none of it is valid if it is unenforceable. Thus, it may be wise to work with an attorney while creating one to ensure its validity. 

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