Posted on August 08, 2019 in Family Law
For people in Minnesota planning a wedding, there are aspects that might not be joyous and can spur outright disagreement. One such issue is a prenuptial agreement. However, as hard as it can be to ask a future husband or wife to sign such a document, those who own certain assets must protect themselves. This is especially true if one spouse owns a business.
Business owners should understand how prenuptial agreements help them if their marriages end in divorce. With a prenuptial agreement, there will be a value assigned to the business as of the date of the marriage. Since a successful company will increase in value, this can shield a certain amount from property division in the divorce. Once the business has increased or decreased in value after the date of the marriage, the prenuptial agreement can gauge the non-owning spouse’s contributions. There can also be detailed parameters as to that person’s role and amount of compensation he or she will receive.