The division of property in a divorce proceeding can be made much simpler by a prenuptial agreement. Business owners in particular may benefit from entering into prenuptial agreements prior to marriage, as it allows them to protect their privately owned businesses from being unfairly divided in Equitable Distribution. Determining which party retains ownership of the business and which party has rights to the particular assets of the business is a complicated process, especially if one party started the company prior to the marriage.

When a business owner is getting married, he or she can is able to establish the value of the property at that time. This way, even if the increase in value of the business which was earned during the marriage is subject to division, the premarital value is easily calculated and will be protected and considered as separate property. A prenuptial agreement also allows the couple to decide exactly how to value the business in the event of a divorce and also agree upon the percentage share that each party will receive. This can avoid the business from being subject to being  divided in the same manner as  the other marital assets.

Having a clear and specific plan in place when entering into a marriage can give couples peace of mind, especially when there is a business and the future earnings of parties  at stake. If you would like more information on preparing a prenuptial agreement, contact us today and let our experienced legal team assist you!