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Why a prenup makes sense for many marrying business owners

It’s insurance, after all.

When distilled to the core, and absent emotive proclamations that often attend the subject matter, the bottom line concerning a prenuptial agreement can be readily seen and appreciated.

It’s about protection. And expectation setting. And meaningful communication between a couple regarding important matters in a timely manner before marriage.

We note on our website at the established New Jersey Law Office of Rajeh A. Saadeh the enduring notion in some circles that “prenuptial agreements are contrary to the basis of marriage.”

Candidly, that view is diminishing as time goes by. The obvious reality surrounding marriage in the United States is that it does sometimes end in divorce.

We stress that when it does, “a marital agreement can limit the cost and animosity” that might otherwise occur. Progressively more marrying couples – many of them older and with accumulated assets, some with children from a prior union and some with inheritances to safeguard – duly appreciate that.

A recent Forbes article puts it this way: “Marriage requires partners to deal with the pragmatic as well as the romantic.”

The Forbes piece spotlights prenups in one special and narrow context, namely, the utility they often command in impending marriages where one or both partners independently own businesses.

That scenario can render execution of a prenuptial contract a wise proactive move. Among other things, it can speak to the following matters:

  • Accurate valuation of a business at the onset of marriage
  • Fleshing out of out whether post-marriage business gains will be deemed separate or marital property
  • Business roles played by spouses
  • Sources of capital infusion following marriage (i.e., from one partner’s separate assets or a couple’s marital property?)

Forbes duly notes in summary that, where business factors are at stake for a married couple, “having a prenup in place can give them piece of mind.”

A proven family law attorney can provide further information concerning the negotiation and careful drafting of a marital agreement.



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