In Kentucky and across the U.S., prenuptial agreements, or prenups, have become more common. It is important for couples to have a contract that describes who owns what before marriage and what happens to a couple’s assets if there is a divorce.
In the event a business has been started prior to marriage, it is important for a couple to come up with a plan outlining the future of the business and property rights in the event of a divorce. This prevents a court from making those decisions for the divorced couple.
There a number of ways in which a prenup agreement can help protect a business. It establishes how much the business is worth on the marriage date so that this value is protected for the individual. The prenup agreement can determine what happens with the business appreciation or depreciation from the marriage date and whether a spouse will share in profit or losses of the business. It can outline the value of the business in the event of a divorce, which prevents third party involvement in the business valuation. The prenup agreement can spell out what percentage of a business a spouse gets if there is a divorce. Finally, having a prenup agreement can outline how business income will be handled so that assets are fairly distributed.
When faced with a divorce, it may be important to have a law firm to help through the process. A divorce is often a very challenging time for family, and a lawyer may help separate emotions from the reality of the situation. If a prenup agreement needs to be set up prior to marriage, the law firm may help ensure that this happens correctly and quickly to protect assets.