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Protecting a business with a prenuptial agreement

For many Texas residents, owning their own business may be a dream come true, especially if it turns out to be successful. However, if the business was started before a marriage, what was once sole property could become a shared marital asset. To ensure that the person who started the business maintains ownership of it in the event of a divorce, it is recommended that he or she sign a prenuptial agreement.

Signing a prenuptial agreement is the most effective way for a business owner to ensure that he or she maintains ownership of the business even if the marriage does not last. If the couple is already married but one spouse had had the business before tying the knot, a postnuptial agreement could be drafted and signed. In order to ensure that a postnuptial agreement is valid, the agreement should be reviewed by an attorney for each party before the parties sign it.

If a person wants to start a business after getting married but will not have help or support from a spouse, creating a formal agreement to structure the company is important. The founder should get the appropriate documentation, such as an operating agreement for an LLC, that has a specific provision that defines what will happen to the company in the event the owner gets a divorce.

Even if a former couple agrees to work together, a high asset divorce can still be complicated, particularly if there are businesses involved. In addition to protecting a person's business, a divorce attorney could also assist with dividing up other assets, including investment properties, commercial properties, vacation homes and retirement plans. If there is not prenuptial agreement in place or if the assets were obtained after marriage, the attorney may negotiate with the other party to work towards a settlement agreement.

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