How Does a Prenuptial Agreement Help Couples With Business Assets?

 Posted on August 20, 2020 in Family Law

If you own a business prior to getting married, it is only natural that you would think about how your marriage will impact your business assets and operations, even in the happiest and healthiest of relationships. You have likely invested significant time, money, and effort into building the business up to its current state, and want to ensure it remains in good hands throughout your marriage and in the event of a future divorce. One way to protect your business assets is to pursue a prenuptial agreement with your soon-to-be spouse.

Benefits of a Prenuptial Agreement for Illinois Business Owners

Though it may be difficult to broach the subject of a prenuptial agreement with your partner, failing to be upfront with your needs can lead to problems in your marriage later on. An open discussion about finances can clarify where each of you stands and may help you both feel more comfortable about your marriage. For business owners, a prenuptial agreement offers several benefits, including:

• Clarification on marital and non-marital assets: If either partner owns business assets before the marriage, you can choose to clearly specify in your prenuptial agreement that those businesses will remain the non-marital property and that their value, including any increases after the marriage, will not be subject to division in a divorce.

• Confirmation on business decisions and management: Your prenuptial agreement can also specify that you will continue to have the right to manage your business and make any important decisions regarding its operation.

• A plan for the division of assets: Your prenuptial agreement can specify which spouse will be entitled to certain properties in the event of a divorce. You and your partner may decide to adjust the distribution of other marital property to allow one of you to maintain the sole rights to the business. If one of you has significantly greater assets than the other, you may also decide to guarantee spousal support payments in your agreement.

• Estate planning contingencies: When creating your prenuptial agreement, you can also modify your wills and trusts to ensure that the terms of the agreement are followed in the event of your death, allowing your business assets to pass to your chosen beneficiaries.

Remember that prenuptial agreements can be adjusted after your marriage if a new situation calls for it and that you can also establish a postnuptial agreement with your spouse if you did not have a legal agreement before marriage. Keep in mind, however, that prenuptial agreements are only legally binding if both partners consent without coercion and with full knowledge and understanding of each other’s assets and debts.

Contact a St. Charles Family Law Attorney Today

The knowledgeable attorneys at Weiler & Associates, Inc. can help you and your partner create a valid prenuptial agreement now to reduce conflict and uncertainty in the future. We want to assist both partners in the protection of their financial interests, and we have the legal experience to advise you on important considerations in your agreement. To learn more, call our skilled Kane County prenuptial lawyers today at 630-282-8050 to schedule a private consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2087&