Get a postnuptial agreement before starting a business

 Posted on March 13, 2020 in Family Law

You and your spouse are happy together and your marriage seems solid. So, why should you consider a prenuptial agreement essential just because you’ve decided to follow your entrepreneurial dreams or your spouse is starting their own business?

It all comes down to security — both the financial and emotional kind. When a married individual starts their own business, there are dangers to both spouses.

For example, imagine that your spouse has always wanted to follow their dreams and run a bar. A local watering hole comes up for sale, and your spouse wants to take the plunge. However, that means taking out a massive loan and other debts in order to buy out the current owners and do some renovations.

If your marriage does become strained down the line, you could end up saddled with a lot of debt. A postnup can assign those debts to your spouse and help you remain secure that you won’t be facing a mountain of bills after a divorce.

On your spouse’s side of the equation, not having a prenup may make it harder for them to attract partners or investors because of your stake in the bar. Should you divorce, your spouse may end up in a shaky situation without some clear boundaries between your finances.

Postnups set the rules for what’s supposed to happen if a marriage goes sour. Because couples create postnuptial agreements when they’re on good terms with each other, the rules they write for themselves are generally more equitable than they might be otherwise — especially if a court gets involved.