When divorce seems imminent, your mind will surely drift to thoughts of how you will maintain your lifestyle after the split. Your top priority as a business owner is to ensure that you can continue to operate even though your spouse has a partial claim to your company assets.
The family business is among the significant pressure points to discuss during the division of marital assets. Unless you already have a prenuptial agreement, the next best solution for divorce-proofing your business is to sign a postnuptial agreement.
How can a postnuptial agreement protect your business?
A postnuptial agreement is a legal document you can put into effect during your marriage to provide terms on how asset division and other important matters will resolve. Under Kentucky legal statutes, the court will uphold the terms of any separation agreement unless a judge determines it to be unconscionable. Without such an agreement in place, the court may rule that you must dissolve your business for the sake of equitable distribution of the resulting finances.
How should you ask your spouse for a postnup?
Your spouse may not be amicable in the discussion of getting a postnup, especially if your marriage is at a state in which divorce is already imminent. However, drafting a postnuptial agreement together can be a mutually beneficial process. You might use a mediation service to negotiate the distribution of assets that each of you finds personally important, without the interference of a court.
Postnuptial agreements, as well as any other form of separation agreement, empowers you and your spouse to advocate in a controlled environment for the personal wishes that matter most. The unique benefit of a postnup is that you can make these decisions while still married, though the agreement must still be conscionable.