Whether you are married or not, it is likely that you are aware of the daunting divorce statistics of our nation. Because roughly 40 to 50 percent of first-time marriages end in divorce, couples in Minnesota and elsewhere consider having serious conversations prior to getting married. While it is difficult to talk about dissolution before a union starts. Nonetheless, this could help the couple avoid serious disputes and divorce issues if the marriage ends.
How can a prenuptial agreement benefit any couple? Divorce is not only an emotional event; it tends to be very disruptive to each spouse’s personal life. Additionally, divorce could interrupt a family-owned business even threatening its longevity. Thus, couples often opt to include a prenuptial agreement in their union.
A prenup not only provides protection of certain assets and property, such as a family business, but it can also same a couple the hassle and the time to negotiate an agreement regarding divorce issues such as property division, child custody, alimony and other similar issues.
If a spouse is not the owner of the family business, older generations can also take steps to protect the company. However, with business governance carried out by an older generation, prenuptials are often still required to provide the protection needed in order to establish who has ownership or voting abilities.
Although it is an uncomfortable task to initiate and even complete, a prenuptial agreement can be useful for any marriage. Whether much wealth is included or not, couples often seek to leave a marriage with what is rightfully theirs. A prenup could help outline what that is, allowing each spouse to leave with his or her assets and proper share of the marital assets.
Source: Investopedia.com, “Prenuptial Agreements and Family Businesses,” Kathy Boyle, March 10, 2017