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Prenups may protect business owners in the event of divorce

| Oct 17, 2019 | Divorce |

A marital breakup can easily dismantle a person’s finances in New York. Unfortunately, that also means that the business that he or she worked so hard to build can be negatively impacted by divorce. For this reason, it is a wise idea for business owners to create prenuptial agreements prior to walking down the aisle.

Research shows that more engaged couples have created prenups in past years to protect their financial interests long-term. Prenuptial agreements, or prenups, are contracts that spell out what two soon-to-be spouses’ separate assets are before they are married. If they happen to get divorced in the future, they will not have to worry about splitting this separate property. In addition, they can include in their prenups how they would like to address their debts if they happen to break up.

For business people, it is a wise idea for them to keep their companies as separate assets in their prenups before getting married. Otherwise, these business assets will be viewed as marital property during the divorce process. This means that the business assets will have to be split in a manner that a judge considers to be equitable, or fair.

Unfortunately, some business owners currently going through divorce never did create prenuptial agreements before getting married. In this situation, however, they can still try to resolve matters like property division through informal negotiations instead of traditional divorce litigation, which is often more stressful. An attorney can help a business owner to protect his or her rights and best interests through a well-thought-out prenup or divorce settlement agreement in New York.

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