Prenuptial Agreements Protect Businesses

Tennessee business owners are taking a risk when they bring a business into the marriage. If the marriage does not work out, a certain percentage of the business can be at risk in the divorce settlement or court proceeding. In order to protect against this happening, people should consider signing a prenuptial agreement before they get married.

The prenuptial agreement will lend some certainty to the situation if a business owner gets divorced. When this occurs, the terms of the agreement will control the property settlement. The agreement can either dictate that the owner retains the entire business or that a certain percentage of the business goes to the other spouse. In addition, the terms of the prenuptial agreement can also provide a valuation of the business as well as provisions for what happens if the value of the business grows during the marriage.

The risks of not having this type of agreement in place are high. Many couples shy away from discussing a prenuptial agreement because they do not like to talk about divorce before the marriage even happens. However, these documents have become more widely accepted as more couples have used them. In the past, one spouse may have refused to even discuss something like this. Now, more couples recognize the benefits of having a prenuptial agreement. One who owns a business simply cannot afford the uncertainty.

In order to better understand how a prenuptial agreement can help provide some protection and peace of mind, one might consider a consultation with a divorce attorney. This lawyer may be able to make suggestions as to what form the agreement should take. He or she could also help handle the negotiation with the other spouse so that it will not cause discord before the wedding. Professional help is vital towards crafting a durable and viable agreement.

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