A prenuptial agreement is a contract entered into by a couple before marriage. The prenup spells out the property rights of one or both of the parties involved in the case of death or divorce. When you are setting up your business, you may not be considering how your marriage will impact it, but a divorce can cripple your business.
First, there is the capital. Because Washington is a community property state, if you start your business with 1 million is capital but grow it to 2 million by the time of your divorce, your ex is entitled to 50 percent (that million dollars you spent all your time growing).
Then there are the liabilities, you could get 50 percent of those as well. This means if your ex goes out on a spending spree before your divorce occurs, those creditors could potentially come after your business assets to settle the debt.
Prenups can help to protect your business as separate property, but also protect your future spouse. If you are a partner in a business, for example, you may need a prenuptial agreement to safeguard your future spouse from accidentally becoming a partner upon your death.
Each prenuptial agreement is unique and made to fit your particular situation and business.
For assistance establishing a prenuptial agreement speak with one of our Washington State Family Law Attorneys at Elise Buie Family Law Group, PLLC. We provide free consultations to help get you started with planning your prenup today.