You’re starting a new business with your best buddy. You’ve done all the research, bought your website, designed a logo and crafted a stellar business model and plan that got you financed.
Now, you have to do one more thing: Make sure that your partnership agreement calls for each of you to get a prenuptial agreement in place before you marry (or a postnuptial agreement, if you’re already wed) to protect the business.
Why are martial agreements important to the future of your business?
While nobody likes to think about the potential for an ugly divorce, they do happen. A couple that’s madly in love today can be at each others’ throats tomorrow, and that could be disastrous to your company’s future.
Without marital agreements in place, what’s the worst that could happen? Well, you could wake up one day to find that your business partner’s ex-spouse has gained a significant hold on the company as part of the divorce settlement. Or – if you’re the one divorcing – you could find yourself suddenly in business with your ex if they gain half of your business in the split.
Even if the worst doesn’t come to pass, a prenup or postnup can also set the terms for how a business will be valued if one of the partners has a marital split. That can save a lot of wasted time and expenses the company doesn’t need trying to come to an agreement later. It will also keep your business from being unduly disrupted.
Starting a new business and partnership can be complicated, and there are always a lot of different possibilities to consider. Absent a crystal ball that tells you the future, a good partnership agreement that covers all the bases is the best way to protect your interests.