For people in Minnesota planning a wedding, there are aspects that might not be joyous and can spur outright disagreement. One such issue is a prenuptial agreement. However, as hard as it can be to ask a future husband or wife to sign such a document, those who own certain assets must protect themselves. This is especially true if one spouse owns a business.
Business owners should understand how prenuptial agreements help them if their marriages end in divorce. With a prenuptial agreement, there will be a value assigned to the business as of the date of the marriage. Since a successful company will increase in value, this can shield a certain amount from property division in the divorce. Once the business has increased or decreased in value after the date of the marriage, the prenuptial agreement can gauge the non-owning spouse’s contributions. There can also be detailed parameters as to that person’s role and amount of compensation he or she will receive.
The owner of the business can decide how it will be valued in case of divorce. This is a strategy to prevent outside valuations that are costly and disruptive. If there is a prenuptial agreement, it can say what the spouse will receive as part of the settlement. This can be a percentage of its value and is a sound way to avoid the business being treated as a marital asset.
The goal of a prenuptial agreement is to clarify divorce legal issues that inevitably arise. It is a protective device. Still, there can be confusion during a divorce even with prenuptial agreements. For any problem with the document and how it relates to a business one spouse owned at the time of the marriage, receiving legal advice from a qualified divorce attorney is a must.