A Prenuptial Agreement Can Protect a Business

How will your marriage affect your business interests or the business interests of your intended spouse? The time to think about that is before you get married. If either or both of you have a business interest, plans to start a business, or if you both will be involved in the same business, it is important to the business and the marriage partners to determine expectations and responsibilities prior to marriage.

As a business owner, you also have an obligation to protect the interests of other principals in the business – corporate shareholders, business partners and limited liability company (LLC) members. A sole proprietorship needs protection, too.

How will the business assets and income be divided or managed under various circumstances, including divorce, separation, death or disability?

Be Aware of How a Prenup Can Protect Business Interests.

At the Los Angeles firm of Stolar & Associates, more than 25 years of experience as divorce attorneys has made us especially mindful of the importance of prenuptial agreements that deal with business matters. For example:

• If you are the owner or partial owner of a business prior to marriage, a prenup contract can specify how the business will be kept separate from California community property.
• If you are part of a family business before marriage, a prenup can establish that the business will remain in the family in the event of divorce or death.
• A prenuptial agreement can ensure that your business partners maintain control of the business in case of disability, divorce or death.
• If you contribute to the success of a spouse’s business, a premarital contract can ensure you receive credit for your contributions.
• When a business grows during the marriage, a postnuptial agreement can protect the business from being part of community property.

Contact Us for a Free Consultation about a Business Prenup.

The prenuptial contract laws in California are constantly changing. It is essential that you have an attorney who knows the law well, and who has experience negotiating strong, effective contracts. Call 310.288.1828 or send us an e-mail.