While many couples choose to enter marriage without planning for the possibility of divorce, there are numerous reasons to consider creating a prenuptial agreement. This document may specify how a couple wishes to divide assets in the event of a divorce, which may save time and enable a smoother transition if the marriage does end. It may be especially important for a business owner to sign a prenuptial agreement to protect his or her business assets.
According to The New York Times, prenuptial agreements are becoming more popular among millennials who choose to marry. There may be several reasons for this, including the fact that many millennials are getting married at older ages than previous generations. Oftentimes, these individuals already have numerous assets prior to marriage and want to protect those. Individuals who have significant wealth, including retirement accounts, investments or businesses, may use a prenuptial agreement to make sure they keep these assets even after a divorce.
Forbes states that a prenuptial agreement may be extremely important for entrepreneurs. This is especially true if an individual gets financial support from a partner, fiance or spouse when starting or expanding his or her business. While spousal support for a new business venture may offer many benefits, it could also entitle that spouse to a portion of the business assets in the event of a divorce. A prenuptial agreement may help an entrepreneur keep his or her business separate from other marital property, even if there are contributions from a spouse. Keeping business finances separate from personal and household finances may also help an entrepreneur protect his or her business assets during a divorce.