Getting divorced is rarely easy, but it can be simplified when the parties have entered into a prenuptial agreement or a postnuptial agreement. These legally binding documents can specify not only the financial responsibilities of each party during the course of marriage, but also how property will be addressed in the event of divorce. It can also dictate how other divorce legal issues like alimony will play out. Given the impact marriage dissolution can have on one’s financial stability, these considerations are of paramount importance.
This may be especially true for those who have a business. Business owners who forego a prenuptial agreement or postnuptial agreement can find themselves battling with their spouse to determine how the business should be divided. The value of the business and each party’s contribution to its successes and failures can all be up for debate, the outcome of which can have tremendous financial consequences.
Fortunately, though, even businesses can be dealt with through a prenuptial agreement or a postnuptial agreement. This agreement can identify an agreed upon value for the business at the time of marriage, which makes it much easier to determine how much of a business’s future value is considered separate in nature and therefore exempt from the property division process. Also, one of these agreements can specify who will take responsibility for the businesses appreciation or depreciation, whether it rest solely on one party or if it will be shared in some way. A prenuptial or postnuptial agreement can also clarify how the business will be valued in the event of divorce as well as how that value will be divided. Income splits can also be articulated in these agreements.
Each of these terms can have a resounding impact on one’s financial future, especially when a successful business is in play. With so much at stake, Florida residents shouldn’t leave the property division process to chance. Instead, they may want to speak with an experienced attorney who can help advise them as to prenuptial agreements, postnuptial agreements, and other property division-related issues.