In the past, asking a significant other to sign a prenuptial agreement in Pennsylvania was often looked down upon. However, as more and more people are waiting to get married, the stigma surrounding prenuptial agreements has begun to dissipate. This is particularly true for people who started businesses before tying the knot.
A prenuptial agreement outlines the assets that a person had prior to the marriage. When it comes to businesses, there are a few factors that the owner will need to consider when having a prenup drafted. For instance, the value of the business before the marriage should be known. With a prenup, the original value could be considered separate property while any additional value will be marital property. If marital funds are used to invest in or grow the business, the company may become marital property. Figuring out this information before the marriage could prevent issues in the future.
Additionally, the role that the future spouse plays in the business could also be addressed in the prenuptial agreement. A spouse who has an active role in the business may be entitled to more assets in the event of a divorce.
If a couple with a business ultimately does decide to divorce, having a prenuptial agreement in place can make the process much easier. However, if the former couple opted to not get a prenuptial agreement or the business was started after the former couple got married, a family law attorney might be able to assist with determining how to obtain an accurate valuation of the company. Legal counsel could also help throughout the property division process.