Is Your Business Partner Getting Married? Demand A Prenuptial Agreement

If you have recently gotten into a business with a friend or family member, and they are going to walk down the aisle and get married, it's time to talk about the prenuptial agreement. Although you aren't in their marriage and you shouldn't have to worry about their relationship, you have to protect your business and your own financial interests.

There are a lot of different things that could occur, and if your partner passed away or got divorced, you don't want to be forced to be partners with their spouse. Be sure that you talk with your partner about the following things.  

Company Protection and Shares

A prenuptial agreement should be compiled that states the spouse isn't allowed to get any ownership of the company, and instead they will be bought out. The money for your partners shares will be given to the spouse and the ownership of the business will be transferred to the remaining partner. This eliminates a lot of problems with determining who owns the company if one of you passes and who is getting the money. If they get divorced, you don't want the spouse to be entitled to half of the business shares or ownership.

Life Insurance for Loans

If your partner was to pass and they still had a loan that the two of you shared or a loan for the business, there needs to be a life insurance policy in place that doesn't go to their spouse. Instead, this policy needs to go directly towards the loan so that there isn't a huge debt that you get stuck with.

Kids and Ownership

If your partner plans on having kids and they want the business to go to their kin if something happens, have it stated in a prenuptial agreement that this is only upon death and when the child is an adult and that the spouse can't go after shares or ownership while the child is underage.

There are a lot of things that can happen when you get divorced and you are a business owner who is married, so make sure that your partner's mistakes don't end up being your problems. Sit down with a lawyer that specializes in creating prenuptial agreements for business partners, and rest easy as they get married because you know that you aren't going to have any of your hard work or profits at the risk because of their new spouse. 

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