Kennedy Law Associates
COVID-19 UPDATE: Kennedy Law Associates remains open to serve the legal needs of our clients, and for consultations with potential clients, safely via teleconferences, Skype, or Facetime. Let’s all stay healthy and safe.

Using a prenup to protect business assets

One reason a couple might want to create a prenuptial agreement is to protect business assets that one or both parties acquired before the marriage. North Carolina residents might like to know more about safeguarding their businesses in case they divorce.

Marital property may be subject to division between a couple during a divorce. However, a prenuptial agreement allows spouses to determine the assets to which each person has rights. A prenup allows the owner of a company to establish its value when a marriage begins. This allows its worth to be protected as separate property.

Prenups can keep the premarital value of a company from being subject to division, but a couple can also make a plan to address a business's worth during a marriage. Sharing profits and losses with a spouse might be appropriate in cases in which one person makes contributions to the other individual's business or has invested in the company.

When a business valuation occurs, this process can interfere with the daily operations of a company. To avoid this, a couple can plan how they will determine what the company is worth in the event they divorce. Additionally, an agreement could be reached about how to deal with a business owner's income. This is necessary when the owner of a company puts earnings back in the business instead of taking a regular salary.

There are many different considerations involved when business assets are part of a divorce. For example, the contributions a person makes to his or her spouse's business can be direct or indirect. If one party handled taking care of children or supporting a couple while the business was not yet making a profit, he or she party might have a greater claim to a portion of the business's value. An attorney could help someone negotiate for the value of a business.

No Comments

Leave a comment
Comment Information
Contact Us

Tell Us Your Story

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

In Your Neighborhood

Are quality legal services available in your Charlotte neighborhood? Yes, our offices are located in Ballantyne, so you do not need to fight traffic driving uptown or deal with the inconvenience of paid parking decks. We are just minutes from the Ballantyne Corporate Park right off of I-485. An initial domestic consultation with Kennedy Law Associates is a positive step toward creating a roadmap to a better future.

14835 Ballantyne Village Way, Suite 225
Charlotte, NC 28277

Phone: 704-512-0619
Phone: 704-369-5600
Get Directions