Why All Long Island Business Owners Need Prenuptial Agreements

May 1, 2022

If you are a business owner, partner, or shareholder then a prenuptial agreement is absolutely necessary. It will protect your company in the event that the marriage ends. And all marriages end: either to death or divorce.

Prenuptial agreements are so important that many partnership and shareholder agreements will explicitly demand that each owner of the company has one in place before they get married.

Prenuptials can establish your business or your shares as non marital property.

When you get divorced only marital property gets divided up: property that you and your spouse accumulate during the course of the marriage. By specifically siloing your business or shares in your business as non-marital property you make it nearly impossible for your spouse to claim any share in your business later down the line.

You also get a chance to talk to your attorney about the steps you’ll need to take to ensure that this property remains protected. 

If you and your spouse intend to own or run the business together then a prenuptial says exactly who gets control of the business after the marriage ends.

The prenuptial also records the exact value of the business that you brought into the marriage, which can be important when dividing the property later. It records the equity that each spouse will have in the business in the event of a divorce, and may make provisions for an eventual buy back. 

This is especially important for businesses where your spouse may be directly involved in the business, common on family farms and in other, similar enterprises. 

Certain clauses can protect your business in other ways.

For example, a social image clause prevents your spouse from disparaging your business on social media, and a confidentiality clause prevents your spouse from sharing sensitive business information that she may become privy to.

There are dozens of provisions like this, and your attorney can help you work out each of them in a way that ensures a divorce cannot harm your business. 

Get help today.

A business is an asset, and unless you take steps to protect it your assets will be divvied up in the divorce. As business lawyers and family lawyers, we know exactly what it takes to protect the business you’ve worked so hard to build.

Signing a prenuptial agreement might not feel romantic, but if something goes wrong you’ll be happy that you did it. 

Make an appointment to discuss your options today.

See also:

The Fate of Your Business in Your Long Island Divorce

How to Buy Out Your Business Partner in Long Island, NY

When Do You Need a Long Island Business Lawyer?