A Prenup Contract Can Protect Business Interests

Every business faces risk. And every business can and should reduce the risks whenever possible. A prenuptial agreement is one way to reduce risks and increase certainty.

How will a divorce (or death or disability) of the sole proprietor or one of the owners of a business affect the business? At Stolar & Associates, our attorneys have the knowledge and experience to advise you about a prenuptial agreement that protects your business.

A Prenup Reduces Risk and Protects the Business.

If you are the owner or part owner of a business, a member of a family business, or if you are planning to start a business, make sure your premarital agreement deals with issues of management and ownership.

• A prenup can establish whether the business is to be characterized as separate or marital property.
• The prenuptial contract should determine how assets and revenues from the business are to be divided in the event of divorce.
• How will the business be managed if an owner gets divorced or dies?
• How will partners, shareholders and other owners be protected if one owner is involved in a divorce?
• The prenup may have a business buy-out provision or a revenue-sharing provision that is acceptable to both parties.
• After a divorce, does the prenup ensure that a family business stays in the family?

Without a prenuptial contract, a business can, in the worst case, be subject to liquidation in order to satisfy division of community property. In less drastic situations, the business may suffer setbacks due to asset depletion and management confusion. A prenup can reduce those risks.

Call for a Free Consultation about a Business Prenup.

Our lawyers know the problems divorce can cause a business, and we know how to avoid those problems through carefully drafted prenuptial agreements. Call 310.288.1828 or send us an e-mail.