Prenuptial agreements have long been a tool of the wealthy to protect assets when they marry. But there is a growing trend of people using these agreements to protect future business earnings, according to a recent article.
“In a 2016 survey by the American Academy of Matrimonial Lawyers, 3 in 5 divorce attorneys said more clients were seeking prenups in the past three years,” reported the article. “About half said they'd seen a spike in the number of millennials requesting the agreements.”
Prenups are an increasingly popular way to protect entrepreneurs, their ideas, and eventual investors from the fallout that could result from divorce. Without an agreement, a successful startup could be split, and/or voting rights given to a disinterested or possibly vindictive spouse. Today’s entrepreneurs are taking a cue from past examples of business-related prenups from executives at Google, Oracle Corp. and Amazon, with agreements that ensure an ex-spouse does not have much, if any, control over the company. In some cases, the ex-spouse receives cash, property or investments in lieu of shares.
However, the article noted that a prenup is no guarantee that a business is safe. Agreements can be challenged and are especially vulnerable if poorly drafted. A good family law attorney is essential to preparing an agreement that will hold up in a court challenge.
If you are seeking experienced Bucks County prenup lawyer, contact us. Call 215-340-2207, or email firstname.lastname@example.org. We are working remotely due to the pandemic but are still fully operational and working with clients daily.