All's Fair . . .
. . . in love and business, so you may need a prenup to protect your company's assets.
Opinions expressed by Entrepreneur contributors are their own.
Breaking up is hard to do--especially when that breakup canjeopardize business assets. Considering that more than 20 millionU.S. adults are divorced, and that 41 states have equitabledistribution laws (leaving division of marital assets up to thecourts), it's a real possibility. The term "maritalassets" no longer just conjures up images of houses, cars andsavings accounts. It can include your business, which is why morepeople are including their businesses in prenuptial agreements.
What can happen if you don't? Sheila Ginsberg Riesel, amatrimonial law expert with Blank Rome LLP in New York City, recalls thecase of a man who inherited the family business. Though thebusiness was his separate property before the marriage, theinterest the business earned during the marriage was considered amarital asset. Without a prenup, this entrepreneur's ex-wifewas entitled to half of what the business was worth at the time ofthe divorce--which meant he had to buy his ex-wife's interestback from her to keep his business up and running.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:
- Digestible insight on how to be a better entrepreneur and leader
- Lessons for starting and growing a business from our expert network of CEOs and founders
- Meaningful content to help you make sharper decisions
- Business and life hacks to help you stay ahead of the curve