Business owners often expend a great deal of time and energy building their business. While most business owners in Virginia would be reluctant to jeopardize their business by entering into an agreement without a proper contract or legal agreement in place, many people leave their business interests unprotected by a potential divorce. However, many do not fully understand the impact that a divorce can have if there is no prenuptial agreement in place.
A prenuptial agreement can address how a business will be divided in the event of a divorce. A business that was started before a marriage will likely be considered separate property. However, the amount of appreciation value could be considered marital property. Certain provisions in a prenup, however, can address these issues, including requiring that any business partners sign off on transfers of shares. Such an agreement can also protect a business from debt collectors going after a spouse’s debt.
Even when a prenuptial agreement is in place, certain steps must be taken to ensure that it is enforceable. For example, while one attorney can draw up an agreement, both people should have a legal representative review it and negotiate it on their behalf. The terms of the agreement must clear and enforceable. Additionally, all assets must be disclosed.
While in the glow of a happy relationship, the last thing most people want to think about is requesting a divorce. However, a prenuptial agreement can help people in Virginia protect their business interests. An experienced attorney can help those who want a prenup ensure that their best interests are protected.