When you begin baking cupcakes in your family kitchen or otherwise offer goods and services, you may view your activities as a means for earning a little extra income for your family. However, these activities often prove to be highly successful, requiring the assistance of your spouse to keep up with daily operations or contribute financially to help the business grow. Seemingly without warning, you have a real family business — with pressures that can potentially cause the end of your marriage.
Couples who start small businesses often fail to foresee the type of success that requires a full partnership contract. As the business grows, however, marital strain commonly increases. According to Gaebler.com, a website dedicated to entrepreneurs, married couples who own a business frequently face vital decisions pertaining to the future of the business after divorce. It makes good business sense to decide issues such as the following early, rather than waiting for divorce negotiations:
- Do you plan to sell the business to split the assets, retain the business together or continue operations with one spouse at the helm?
- If either spouse uses non-marital assets to fund any portion of the business, what extra consideration needs to be pre-defined to protect that individual from loss of personal property?
- If one spouse will retain the company, how will the other spouse receive compensation for their portion of the assets and profits?
- Will the non-owning ex-spouse be subject to a portion of future earnings or losses and, if so, for how long?
Keep in mind that a postnuptial agreement does not replace the many contracts required to operate a successful business. However, a Boca Raton family law attorney who has experience drafting postnuptial agreements can help ensure that you have the basic provisions in place that protect the interests of both spouses and the future of the business in the event of divorce.
Postnuptial agreements do not encourage divorce. They simply allow couples to agree on basic issues before conflict makes agreement more difficult. The law firm of Feldman & Schneiderman, P.L. has the experience needed to help you determine whether you need a postnuptial agreement and, if you decide you do, helps you negotiate the terms in the spirit of cooperation.