Prenuptial Agreement –Another Business Decision
Raising the prospect of a pre-nup with a future spouse may not be seen as a romantic overture. While money can’t buy you love, a bad relationship can get you to the “Big D.”
The reality is that an estimated 50% of all marriages end in divorce. DivorceRate.org states that when individuals enter marriage a second or third time, the likelihood of repeating the whole process of divorce increases to 67%, and on to 74%. These staggering statics are a valid reason for concern, especially for business people and entrepreneurs in community property and common law states, such as Texas.
Entering into a pre-nup while a couple is on amicable terms allows the couple to make decisions that are in their best interest, without emotions taking control. It is infinitely simple for business lawyers to craft a pre-nup and determine a liquidation of the business interest without the baggage of a divorce proceeding. And a pre-nup is a planning tool, a prudent business owner must examine prior to entering into a new marital relationship.
Where is the Romance?
Part of any business planning strategy involves planning for contingencies. For business people looking at entry into a marital relationship, after their business becomes profitable, premarital or prenuptial agreements are essential tools to protect the business.
A well structured pre-nup could potentially lessen the costly and lengthy legal process that a divorce can bring upon an individual. It allows business lawyers to work with family law attorneys and structure either an agreed liquidated amount for non business owning spouses community property interest in the business, if any, or the method by which that spouse’s interest would be preserved by the business owner.
Elyse M. Farrow