Key elements in prenuptual agreements to protect your company

Written by David on May 27, 2010 - 0 Comments
Categories: minority ownership, reducing business risk, succession planning

A quick analysis today on Inc.com summarizes the following key elements in any pre-marital agreement to keep an existing business as separate property (with the note that states treat separate property differently):

  • The agreement must be in writing (No oral prenups)
  • It must be executed voluntarily and without coercion (having your fiancé sign a prenup the day before the wedding is a good way to invalidate that prenup)
  • There must be full disclosure (no hiding of assets) – this is another way to invalidate a prenup
  • The agreement cannot be unconscionable (this is also another way to invalidate a prenup). For example, if you’re making millions, don’t expect to get away with only giving up the silverware in the divorce, even if that’s what’s in the prenup.
  • It must be  executed by both parties, preferably in front of witnesses (or a notary or even a judge)

Leave A Comment...