If you’ve built a business or plan to start one, protecting it is something you can’t afford to overlook—especially when marriage is involved. Whether you’re getting married or are already married, a prenuptial or postnuptial agreement can make sure your business stays yours. As Melinda Previtera puts it:
“A prenuptial or postnuptial agreement is like a life insurance policy for your business. No one wants to think about divorce, but having this in place ensures you protect what you’ve built.”
Let’s break down how these agreements can help keep your business running smoothly, no matter what happens in your personal life.
Key Takeaways
What Are Prenups and Postnups?
Before diving into which one is right for you, let’s get clear on what these agreements are.
- Prenuptial Agreement (Prenup): This is a legal contract signed before you get married that lays out how assets—like your business—will be handled in case of divorce or separation.
- Postnuptial Agreement (Postnup): A postnup works the same way but is created after you’re already married. It’s particularly useful if you started a business after tying the knot.
Both agreements can clarify how your business is divided (or protected) in case of divorce, avoiding potential headaches down the road.
Why Consider a Prenup for Your Business?
If you’re not yet married, a prenuptial agreement can set expectations about your business upfront. This is especially helpful if one person is the primary business owner or your spouse isn’t involved in the business. By having a prenup, you ensure that the business you’ve worked hard to build remains separate from the marital estate.
Melinda gave an example of how this might play out:
“Think of someone like Steve Jobs—if he starts his business and then gets divorced, it can create a situation where the spouse gets shares or control in the company, even if they had no involvement. A prenup can prevent that from happening.”
This is a great example of why a prenup isn’t just about divorce—it’s about making sure everyone is on the same page before you even get started.
Prenup Feature & Benefit:
- Feature: A prenup clearly defines business ownership before marriage.
- Benefit: Avoids having the business divided or impacted by divorce proceedings.
When Should You Use a Postnup?
If you’ve already tied the knot and are in business together—or if one spouse decides to get involved in the business after marriage—a postnuptial agreement is your best option. This is especially helpful if you want to make sure both parties have clear roles, or if one person is leaving a stable job to help grow the business.
Here’s how Melinda explained it in the interview:
“Let’s say a wife leaves her job to join the family business. She’s now contributing to its growth. A postnup can lay out what happens to the business if the marriage doesn’t work out, ensuring everyone’s contributions are accounted for and that the business doesn’t get caught up in a personal dispute.”
This shows how a postnup can protect not only your business but also the livelihood of the family.
Postnup Feature & Benefit:
- Feature: A postnup clarifies business ownership and roles after marriage.
- Benefit: Prevents disputes and keeps the business stable even if the personal relationship changes.
Family Business and Planning
Prenups and postnups aren’t just for married couples—if you’re going into business with family members, having an agreement in place is just as important. Whether you’re starting a business with a sibling, cousin, or parent, it’s crucial to outline roles, responsibilities, and ownership from the start.
Melinda pointed out how trust alone isn’t enough:
“I’ve seen too many cases where family members get into business together and assume everything will work out because ‘we’re family.’ But without clear communication and legal agreements, things can fall apart quickly. If both parties aren’t on the same page from the beginning, it can lead to disputes that affect both the family and the business.”
This advice applies not just to married couples but also to any family-owned business where roles and ownership might get blurry without proper agreements.
Communication and Long-Term Planning
The reality is, things change. Whether it’s your business growing or your marriage evolving, you’ll want to revisit these agreements as life progresses. Maybe kids are coming into the business, or maybe one spouse wants to take a step back. Melinda’s advice? Don’t wait until things get complicated—update your agreements regularly.
“Whenever there’s a big change in life, like kids joining the business or a change in income, that’s when it’s time to revisit your agreements. You don’t want to be scrambling later on.”
Clear agreements today can save you from future headaches—both in your marriage and in your business.
Secure Your Business with a Prenup or Postnup
Whether you’re getting married, already married, or in business with family members, having a solid legal agreement is the best way to protect your business. A prenup or postnup doesn’t just safeguard your assets; it also ensures that everyone is on the same page, making it easier to manage both your business and personal relationships.
Need help navigating this process? Talk to a lawyer about setting up a prenuptial or postnuptial agreement to make sure your business stays secure. For more details, visit our lawyer for postnuptial agreements or lawyer for prenuptial agreements pages.