Business owners in the state of Michigan work hard to keep their companies afloat. When one has sacrificed everything to see his or her business succeed, the last thing one wants is to have issues in his or her personal life affect the future of the company — but this can happen if divorce ever enters the picture. Knowing that divorce can harm one’s business, what can one do to prevent that from happening? One of two things can actually be done to protect one’s business from the ravages of divorce, and whichever suits one’s needs must be completed well before one’s marriage falls apart.
Number one: obtain a prenuptial agreement. For those who have not walked down the aisle just yet, it is possible to have a prenuptial agreement drafted that states one’s company is to be considered separate property and not subject to asset division if the marriage fails. Various other terms can be set in this contract that will protect both parties and allow for smoother divorce proceedings.
Number two: obtain a postnuptial agreement. For those who are already married, a postnuptial agreement can offer many of the same protections as a pre-marital contract. Certain terms regarding one’s business can be set so that, if the marriage fails, the company will suffer minimal damage.
Legal counsel can assist in setting the terms of a pre- or postnuptial agreement. For either document to be legally binding, the terms have to be considered fair for both parties. It is also necessary to ensure both parties sign the contract in front of witnesses and do so voluntarily. Pre- or postnuptial agreements that are forced on one party may be deemed invalid.
For those interested in pre- or postnuptial agreements, an experienced divorce law attorney can assist with their creation. For Michigan residents who did not seek out either of these contracts in an effort to protect their businesses and are now facing divorce, legal counsel will work diligently to help their clients achieve property division settlements that inflict minimal damage to their companies. Divorce is not easy, but with help and careful planning, one can walk away from the process with settlement terms with which they are satisfied.