How Can I Keep My Business From Becoming Shared Property After I Marry In Los Angeles, California?
Marriage is an all-encompassing agreement. One that requires both parties to be on the same page about their commitment, future wants and needs, and certainly — their finances. As millennials begin pushing prenuptial agreements to the forefront of their marriages in record numbers, the American Academy of Matrimonial Lawyers conducted a survey where 78% of the respondents stated that their request for a prenup was to provide protection of separate property. And in many cases that means protecting their business ownership.
If a business was started by one spouse before the marriage, then getting a divorce may not impact it when it is able to remain separate property, which is exactly the type of protection a prenuptial agreement can provide. Without the legal agreement in place, many businesses can lose their status as separate property during the marriage.
To complicate things even more, regardless of whether a company starts off as non-marital property, the spouse’s role in the business, and his or her compensation or salary changes going forward, may be treated as shared property during the marriage.
For example, if you create a tech start-up with two partners before you are married, the business may initially be considered separate property. However, if the company distributes additional stock shares to you during your marriage, those shares may be considered marital property.
And when couples part ways in a divorce, the legal battle can begin with one spouse and his or her attorney hiring a forensic accountant to determine how much the business is worth — and what share he or she is going to demand as part of the divorce settlement.
Our Los Angeles, California prenuptial agreement attorney provides legal representation for one or both spouses who are seeking advice on how to keep their separate property independent from their marriage.
No matter your age, or how many times you have been married, protecting your company begins with an expertly crafted prenuptial agreement.
Prenuptial agreements are complex documents that can serve as an exceptionally detailed document that allows both parties to enter a marriage with full financial disclosure, so there are no surprises going forward. You do not have to consider a prenuptial agreement as a divorce plan, as most have long considered them to be.
Instead, allow our Los Angeles County family law attorney at the Land Legal Group to explain how a prenuptial agreement can strengthen your marriage, your business efforts, and each other’s trust in both by calling (310) 746-5856 to discuss your unique circumstances during a free consultation today.