No happy couple wants to consider that they will get a divorce. However, planning ahead may pay off in the end, especially for couples who own a business together.
One couple in their sixties has been married for 19 years. They are also business partners. In 1993, they opened a textile company together. But before they opened the business, they signed a prenuptial agreement for their business. In the prenuptial agreement, they have determined that in the event of a divorce, the two would split their assets evenly in half. Although they have no plans to divorce at this point, they are prepared for anything.
Determining what will happen to a business after a divorce often depends on how it was structured in the first place. If couples agree to a 50-50 partnership, then often the assets are split evenly in half. In other situations, one person may buy the other's shares of the company.
Whatever the case, couples who decide to enter into a business partnership may find signing a prenuptial agreement to be very valuable. In addition, couples may wish to consider putting in writing how much they initially invested in the company and how much they would hope to be left with if the marriage and business partnership dissolve.
When people get married or start a business together, it seems hard to imagine that the union could ever be broken, but divorce happens. Fortunately, proper planning in the beginning could save couples a great deal of time and money in the future.
Source: Fox Business, "Marriage and Business: The Ultimate Balancing Act," Kate Rogers, Feb. 13, 2012