Maryland entrepreneurs who plan to get married may want to sign prenuptial agreements so that they can protect their businesses in the case that they later get divorced. Without prenuptial agreements, their former spouses may end up holding greater legal interests in their businesses than the entrepreneurs intended.
It is common for entrepreneurs to ask their spouses for advice or other help when their businesses are first starting. If they do not have prenuptial agreements in place, their spouses may gain significant financial interests in the businesses with which they have helped even if the entrepreneurs started the companies prior to their marriages. A prenuptial agreement can ensure that a business remains as separate property regardless of any contribution by the other party.
In addition to a prenuptial agreement that clearly outlines the rights and responsibilities of both parties regarding the business, it is a smart idea for an entrepreneur to not involve the spouse from the start in any of the business decisions or other aspects. Keeping the business’s account and finances separate from the marital property is also important to avoid commingling of the assets. When assets are commingled, it can make it more difficult to claim that the business is separate.
High asset divorces often involve complex property division issues. When businesses are involved, entrepreneurs may end up losing portions of their businesses if they do not take steps to protect their interests through prenuptial or postnuptial agreements. Commingling assets may lead to a business losing its separate property status as well. Business owners who are concerned about their businesses and who want to get divorced may want to consult with experienced family law attorneys who can attempt to negotiate property settlements that help their clients retain their businesses.