Law Office of Jacqueline McNuttLaw Office of Jacqueline McNutt

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Starting a business? Make sure it's shielded from divorce

Owning a business is one of the most rewarding experiences for entrepreneurs. While these innovative individuals often put a great deal of planning and effort into even the smallest aspects of their companies, they often fail to implement an important protection -- a prenup before any planned marriage. Creating a barrier between business and divorce is important for Texas business owners who want to make sure that their livelihood is not threatened. 

For those who start their businesses before saying "I do," a prenuptial agreement will probably work well. These are written and signed prior to getting married, and while they can address a wide range of topics, they are frequently used to deal with asset division in the event of a divorce. Even if a person thinks that they will keep their business totally separate from marital assets, a prenup can ensure that there is no ambiguity on the matter. 

But what about those who pursue their entrepreneurial spirit after they have already walked down the aisle? Although less common, a postnuptial agreement is also a good option. These may not be as easy to enforce as a prenup, but they perform an incredibly important function -- outlining a person's intentions for their business and their spouse's understanding. Even if not strictly enforceable, a document such as this can demonstrate a couple's intention to keep the business separate from marital property. 

Dealing with asset division during divorce is not always easy. Even though most people in Texas understand that keeping their emotions out of the process is for the best, actually putting that into practice is sometimes difficult. A pre or postnuptial agreement can help couples address the difficult question of who gets what early on in a relationship, when things are still amicable. 

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