Jamie Graham & Associates, PLLC

Prenup may help businesspeople during divorce

Sometimes marriage simply does not last. Divorce may happen no matter how hard two people try to make it work in Texas. This is why having a prenuptial agreement in place before getting married can be immensely helpful, especially for those with businesses.

Signing a prenuptial agreement is the most efficient way of protecting a business from a marital split-up. In a prenup, the business owner can simply designate the business as separate property. With a prenup that is well written, the company can stay separate property no matter the amount of time, money or energy the business owner's spouse contributed to it.

In addition to having a prenuptial agreement, keeping finances separate can be immensely valuable. Specifically, keeping business finances separate from marital finances is necessary. If marital money is invested in the business, even though the business is separate property, the spouse of the company owner may be entitled to a particular percentage of it. In addition, paying oneself a realistic salary is important, as keeping only a small amount of profit so that the rest can go back into the business may cause a future ex to argue that funds that should have been going toward the household were really returning to the business. Thus, this spouse may demand a larger percentage of the assets.

Getting a divorce can be complicated from both a financial and an emotional standpoint. However, if two spouses are willing to work out their differences at the negotiation table or through divorce mediation, for example, they may be able to avoid the stress and cost of going to trial. In either scenario, an attorney in Texas can help to ensure that one's rights and best interests are protected during this type of family law proceeding.

Source: forbes.com, "Why a Prenup May Be A Woman Entrepreneur's New Best Friend", Jenny Odegard, Aug. 2, 2017

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At Jamie Graham & Associates, PLLC, we have received a variety of honors and awards for our family law services. Members of our team have been listed as Top Lawyers in San Antonio Scene magazine. We take pride in the number of positive reviews we have received from satisfied clients. On AVVO, a lawyer rating website, we have received an 8.9 rating overall and many positive ratings from clients and colleagues.

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Jamie Graham & Associates, PLLC
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San Antonio, TX 78205

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