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Prenuptial Agreements For Business Owners


The Importance of Prenuptial Agreements For Business Owners

At WHITMARSH FAMILY LAW, our Los Angeles, California divorce attorney understands that when couples decide to marry — and one owns a business prior to their saying I do — that asking for a Los Angeles prenuptial agreement may not be the most romantic step towards happily ever after.

However, should the two decide to divorce — whether it is within five years or 25 years — the decisions regarding how, or if, the business is divided, can be clearly defined by both parties when they enter a prenuptial agreement in Los Angeles.

Why Should Business Owners Design a Prenuptial Agreement In Los Angeles, California?

In Los Angeles County, business ownership and marriage may combine to create a complex legal area that can pit spouses against each other in the event of a divorce. Prenuptial agreements can provide clear and concise instructions on how each spouse walks away from the marriage, leaving the business unharmed in the process.

The benefits of business owners writing and signing a prenuptial agreement prior to their marriage allow the business to be designated as separate property. This means that the other spouse has no claim to the business interests should a divorce occur.

This also allows any partners in the company an assurance — although none of their financial interests in the company would be compromised by a partner’s divorce — that they have the ongoing knowledge and expertise of the original partner, and that the spouse could not become a decision-maker by staking claim to his or her shares in the event of a divorce.

The most obvious benefit and one that is a common refrain to prenuptial agreement attorneys in Los Angeles is that when someone builds a company from the ground up and marries after its success has been stabilized, that person simply does not want to relinquish their life’s work should they divorce.

Are All Los Angeles Business Owner Prenuptial Agreements The Same?

If designed properly, no two prenuptial agreements are the same, whether you are a business owner or not. At WHITMARSH FAMILY LAW, our prenuptial agreement attorney in Los Angeles understands that everyone’s marital plan, financial standing, and overall agreement objectives are different. The purpose of creating a prenuptial agreement is to ensure it meets your exact needs, so it serves a genuine legal purpose, and that language will be different for each couple who enters into the agreement.

What If I Am Already Married? Can I Ask My Spouse To Sign A Postnuptial Agreement?

Postnuptial agreements are very similar to prenuptial agreements, but as the title reflects, are created and signed after the marriage is official.

Much like the prenuptial agreement, postnuptial agreements require the following components to be true in order to be enforced, including that the contract is:

  • In writing
  • Executed voluntarily
  • Created with full and/or fair disclosure at the time of execution
  • Signed by both parties

Much like its premarital counterpart, spouses may not include child custody or child support matters within the document, as neither is enforceable through a postnuptial agreement.

Are You A Los Angeles Business Owner Seeking A Prenuptial Agreement?

Protecting your company and your future is part of being a successful business owner, and getting married will certainly add to the support you receive at home, which ultimately drives your family to the next level of achievement.

Keeping your company as the separate property will help ensure that no matter what happens in your personal life, your business interests will be protected going forward, and we can help provide an accomplished approach to the decision to create a prenuptial or postnuptial agreement.

Contact our Los Angeles family law attorney today by calling (310) 552-3505 to learn more about your contractual options, so you can move forward with your spouse confidently while still hanging on to the business you have worked so hard to build.

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