How Can a Prenuptial Agreement Protect My Business Assets?

 Posted on August 09,2024 in Family Law

There are many important things to consider when entering into a marriage. One of those considerations, while uncomfortable for some couples to think about, is that the marriage may end. If the marriage dissolves, the divorce process can significantly impact the life of each spouse. There may be child custody to divide, spousal support to pay, and marital property to distribute.

Ohio law defines marital property as assets that belong to both parties. These may include real estate, cash, jewelry, cars, and other possessions. They can also include business assets, which are divided in a divorce if they are considered marital property.

Some couples hire an Ohio family law attorney to draft a prenuptial agreement before the marriage to protect assets like businesses from being divided in a divorce. This article will further explore marital property, prenuptial agreements, and how a prenuptial agreement can protect your business assets.

What Is Marital Property?

As mentioned above, marital property is any asset that belongs to both spouses. This includes most possessions acquired by either spouse during the marriage, but Ohio law gives courts broad discretion to determine what is considered marital property.  

An asset that was obtained by one of the spouses before the marriage normally qualifies as separate property and is not divided in a divorce. However, if the other spouse contributed to it significantly, a court may declare it marital property.

For example, if one party owned a business when the marriage took effect, it is considered separate property. However, if the other spouse can prove that he or she contributed to the business in some way, then any income the business received during the marriage, or the company’s increase in value during that period, may be divided in a divorce.

What Is a Prenuptial Agreement?

A prenuptial agreement is also referred to as a premarital agreement because it is a document that is signed before marriage. It contains provisions for each party’s rights and responsibilities in a divorce, such as:

• Which assets will remain separate property
• How marital assets will be divided
• Spousal support (alimony) arrangements

Once it is signed by both parties, a prenuptial agreement becomes legally binding. If either spouse wants to dissolve the marriage, the agreement guides the divorce process according to the provisions in the document.

How Can a Prenuptial Agreement Protect My Business Assets?

If your prenuptial agreement contains a provision that your business and its assets will remain separate property in a divorce, a court is likely to honor that and refrain from dividing it. However, every case is different and a prenuptial agreement is not a guarantee. A judge may decide, based on certain circumstances, that your spouse is still entitled to a share of your business.

Contact a Wayne County, OH Prenuptial Agreement Attorney

A prenuptial agreement is a great way to protect your assets and should be drafted by an experienced Wooster, OH prenuptial agreement lawyer. At The Law Office of Whitney K.S. Miller, LLC, we excel at composing prenuptial agreements that offer our clients strong protection for their assets. Schedule a consultation with a skilled attorney by calling 330-725-4114 today.