Planning for the future is very important for business owners. This includes making preparations to help address and prevent future challenges for their company.
One thing that could be disruptive for a business is a big change in an owner’s personal life. One of the biggest examples of this is divorce. What happens in an owner’s divorce can have long-lasting impacts on a company.
Now, there are steps that business owners can take to protect the well-being of their company in connection to the possibility of one day getting divorced. One such preparation is forming a prenuptial agreement prior to getting married.
There are various ways that such agreements could help a business owner safeguard his or her business from being hurt by a future divorce.
For one, a prenup can contain terms directly addressing a business. For example, a prenup can establish what would happen regarding ownership of the company in a divorce. This could prevent a divorce from leading to an ownership battle that could heavily disrupt a business and leave it with a very uncertain future.
Also, such an agreement can contain terms regarding issues that could affect a business owner’s financial situation, which in turn can impact how financially supportive he or she could be to the business. Examples include issues regarding debt incurred by one’s future spouse and whether the appreciated value of a business during the marriage would be a splittable asset in a divorce. Terms regarding such issues could help protect a business owner from facing unpleasant surprises in a divorce that could compromise his or her ability to give a company the financial support it needs.
Finally, such agreements can generally create a greater amount of predictability in future divorces. This could lower the chances of a divorce leading to conflict that could negatively impact a business by exposing its owner to added financial drains and increased stress.
Skilled lawyers can help Wisconsin business owners who are about to get married with developing prenups well-tailored to their business protection needs.