As a business owner, you may have felt fulfilled in terms of having a successful career that has brought you ample financial security. However, you may also have felt that something was missing in your life when it came to personal relationships. Now that the time has come to get married, you may wonder what effects your marriage may have on your business ventures and wealth.
Though you may have a willingness to share your financial success with your new spouse, you likely also understand that the possibility exists of your marriage ending. Because you certainly want to protect your business should you face divorce, you may want to create a prenuptial agreement.
Separate or marital property
In many cases, once you get married, the revenue your business generates becomes marital property, and your spouse could end up with a stake in the company. However, you can utilize a prenuptial agreement in order to detail which assets you want to remain separate. By having this stipulation, you may face less risk of losing part of your business and wealth to your spouse in the event that your marriage ends in divorce.
As a businessperson, you undoubtedly understand the importance of keeping thorough records. These records can also help enforce the terms of your prenuptial agreement. You can present evidence of your earning capacity and give justification for keeping the business separate from marital property. Additionally, your records can indicate that you did not commingle business assets with marital assets since commingling could void the terms of your agreement.
A serious issue that could affect your business relates to the accumulation of debt. Though you may keep up with your liabilities and have any debts under control, your spouse may have a tendency to rack up substantial balances. In order to protect your wealth from going down the drain by having to pay up for an ex-spouse’s debt, you may wish to add a section in your prenup that indicates each party will retain separate responsibility for debt and not take on each other’s debts.
Create your document
In order to ensure that the terms of your prenuptial agreement address the aspects of your business that concern you, you may want to go over those and other issues with an experienced Texas attorney. A legal professional can help you protect your property, deal with potential conflicts and ensure that the terms of your agreement suit your needs.