A well-drafted prenuptial agreement has the power to do more than protect personal assets for individuals planning to walk down the aisle in Ohio. A prenup can also be used by a business owner wishing to determine how their company’s assets will be handled during a marriage. For example, it could be kept as separate property, considered marital property or divided up according to a predetermined asset split plan.
Because any additional value a business gains after marriage may be subject to property division post-marriage, it’s often advised that a soon-to-be-spouse have their business’ value determined at the time of marriage. A prenuptial agreement can also address appreciation or depreciation of the business that occurs during the marriage. Additional details that can be covered in a prenup include fair compensation for a spouse who will be working in the business or how indirect contributions a non-owner spouse makes to the business will be valued.
A prenup can also specify if the source of any funds needed for additional business capital during the marriage will be deemed marital assets and whether or not the business would then become marital property. Determining how a business would be valued may also minimize divorce-related headaches, such as going through a third-party valuation process. Also, assigning a certain percentage of a business that would go to a spouse could protect company assets from property division guidelines. Details about handling an owner’s income can be included as well.
Discussing business and financial matters before marriage may not be very romantic, but doing so could provide added peace of mind. A prenup could also be especially beneficial if a divorce is contested and there’s a general lack of agreement on just about everything. In this case, a divorce attorney may use the prenuptial agreement as a basis for settlement negotiations.