Wisconsin entrepreneurs who are thinking about getting married may be well advised to consider having a prenuptial agreement in place long before the wedding date. Even though divorce may be far from their minds, if the marriage does end, it could have a significant impact on the company.
The end of a marriage can be a threat to a business due to the instability that it can cause. If there is no prenup, for example, the appreciation in a company’s value that took place during the marriage will likely be deemed marital property to which the non-owner spouse could receive a share. It might result in needing to fire employees and terminating business relationships. Another concern is debt. Since married couples share each other’s debts, creditors might be able to go after the company to recoup their money.
A strong prenuptial agreement that protects a business will have language that clearly states that the business is separately-owned property. It will also set forth that the parties do not wish to share each other’s debts incurred during the marriage, further protecting the company. The owner might want to recommend that key employees who are single but who are planning on getting wed also have such an agreement.
Family law attorneys will tell their clients who are considering such an agreement that each party needs to have separate legal counsel. They will also let them know that, in order to avoid a future claim that it was signed under duress, the prenuptial agreement should be negotiated well in advance of the wedding day.
