Prenuptial agreements are becoming more common among couples throughout Maryland and the rest of the U.S. People recognize the value of having contracts in place that state how their premarital assets and business interests should be handled in the event of a divorce. Having a prenuptial agreement can be especially important for business owners.
A prenuptial agreement can help by valuing the business at the time of the marriage. This will help the couple to determine the amount of value that has been added during the marriage if they later get divorced. The premarital value of the business will remain the separate property of the spouse who owned it while the increase in the value would be marital property that is subject to division.
People can also use their prenuptial agreements to state how their businesses will be valued if they get divorced. When a method of valuation has been agreed on in a prenuptial agreement, it will help to prevent future arguments over the issue. The spouses can also choose how to determine the percentage that the non-titled spouse will be entitled to receive in the event of a divorce.
While some people hesitate to ask their prospective spouses to draft prenuptial agreements, such documents can help to protect both spouses in the event of a divorce. When they are drafted correctly and are valid, they can make the divorce process to go much more smoothly. Prenuptial agreements can help people to avoid potentially costly litigation over the division of assets. For help drafting a prenup, a future spouse could reach out to a family law attorney.