When you own a business in Minnesota, marriage may create unique risks. For example, if you divorce, unforeseen circumstances could compromise the structure of your company or require you to forfeit assets you have worked hard to acquire.
Implementing an antenuptial contract may act as a protection for your business, providing peace of mind as well. With appropriate boundaries in place, you can rely on the integrity and stability of your business during a divorce if your relationship ends.
Specifications to consider
An antenuptial contract allows you to specify the outcome of important decisions before emotions, irrational behavior and confusion threaten reasonable decision making. When discussing the outcome of your business, in particular, Forbes suggests some important clauses to think about adding to your agreement including the following:
- Whether or not you want your spouse to have a percentage of your business
- Your business’s value prior to your marriage
- The method of valuation you desire to use when determining the value of your business during a divorce
- Clarification of entitlement for your profits and losses, as well as the division of those numbers during a divorce
- Whether or not you or your spouse will buy the other out during a divorce
Documentation for reference
Keep a detailed track record of the valuation of your business including debt incurred, profits gained and earned income. Creating a clear and concise paper trail may provide instrumental support and evidence during a divorce. Updated in conjunction with your contract, you may avoid costly and time-consuming legal battles regarding the ownership of your business and its assets should you ever divorce.