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Prenup can help business owners in event of divorce

Business ownership is considered a personal property right. Naturally, when business owners in Arizona get married, they may opt to share their personal property with their new spouses. Unfortunately, this can pose problems if divorce ends up happening. For this reason, signing a prenuptial agreement before the big day can be beneficial.

In many cases, business owners who started their companies before getting married end up working with their spouses after they walk down the aisle. At the very least, they may ask their spouses for assistance during their companies' early phases. This help is necessary to provide a business with the boost it requires, but if a business owner and his or her spouse get divorced, the spouse might end up more entitled to the business owner's assets than the business owner had intended.

With a prenuptial agreement, a business owner can simply designate the company as separate property. Thus, no matter how little or much a spouse contributes to the business, that business will remain separate property. To make sure that the prenuptial agreement is enforceable, having separate attorneys review the agreement for each spouse is important.

Those who have already gotten married may still choose to create a postnuptial agreement. A postnuptial agreement serves the same purpose as that of a prenuptial agreement, with the only difference being that it is signed after two people have gotten married. An attorney can help with drafting these types of documents or dealing with property division matters involving a business during a divorce proceeding in Arizona.

Source: forbes.com, "Why a Prenup May Be A Woman Entrepreneur's New Best Friend", Jenny Odegard, Aug. 2, 2017

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