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Business owners: Use prenuptial agreement to protect ownership

Are you a business owner? Do you take great pride in everything associated with your company? If so, the last thing you want to do is make a decision that could have a negative impact on your organization in the future.

It doesn't matter if you own a ranch, medical practice or some other type of business, you need to ask yourself this question: What would happen to your company in the event of a divorce?

If you're moving closer to your wedding day, it may be time to discuss a prenuptial agreement with your fiancé. This is never an easy conversation to have, but it's one that will go a long way in giving both individuals peace of mind.

As a business owner, you can use a prenuptial agreement to protect your ownership stake. With this in place, you don't have to worry about your company being divided if you go through divorce in the future.

There are several key elements of a prenuptial agreement:

  • The agreement must be in writing. An oral agreement will not stand up in the court of law.
  • It must be voluntarily negotiated and signed by both individuals. For example, you cannot force your partner into signing the agreement.
  • Full disclosure. You are not permitted to hide assets.
  • While not required, it's good practice to sign the agreement in front of a notary or judge. This ensures that neither party was coerced.

Through the use of a prenuptial agreement, both individuals can decide what property will be subject to division in the event of a divorce. As a business owner, you can make sure that your ownership stake is safe against in case of divorce

Tip: If you did not create a prenuptial agreement before your big day, you can always discuss a postnuptial agreement with your spouse.

At first, it will appear difficult to discuss a prenuptial agreement with your spouse. However, once he or she realizes that this is a mutually beneficial arrangement, they will come around to the idea.

As long as you know how to create a legal agreement, as long as you know how to protect your business interests, the use of a prenuptial agreement could give you the peace of mind you're seeking.

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