Louisiana business owners often take great pride in working for themselves and creating a company they can feel proud of. Unfortunately, a divorce can compromise everything that they have worked so hard to build. Prenuptial agreements can help protect business interests during a divorce and are a smart choice for their owners.
A prenuptial agreement can define what is separate property and what is community property. This is important both for business owners and those who think they may start a company after tying the knot. For the former, starting a business before marriage does not necessarily guarantee that it will remain separate, as commingling of funds and other actions can cause it to become community property. For those who plan to start their business later, laying out expectations for behavior during the marriage can still protect a business and keep it separate.
But what if someone failed to get a prenup? A postnuptial agreement, which is written and signed after saying “I do,” can be a good alternative. However, postnups are not as easily upheld in court, so those considering one may want to consult with an experienced attorney to ensure that everything is in place.
Asset division is a necessary aspect of divorce that all Louisiana couples must deal with. However, division does not mean that business owners must give up everything that they have created. Prenuptial agreements — and in some cases postnuptials — can provide clear divisions between separate and community property, expectations during the marriage and more.