In this article, we’ll be discussing five reasons why a businesswoman may want to consider a prenuptial agreement before marriage…
Whilst the prospect of getting married is often filled with romantic gestures and feelings, the consideration for it falls apart if often put aside. Unfortunately, not all marriages are successful, and it can be hard to consider that there could be a time when your partner may become unreasonable in the event of a divorce.
A prenuptial agreement or ‘prenup’, sets the terms for if you and your partner should ever split which, for businesswomen, could be a God send when needed. Keep reading to find out why businesswomen should consider having a prenup in place…
1. Protects Your Assets
If you’re a woman in business, with assets you’ve earned yourself from years of work, then you may want to consider what protection is available for them. A prenuptial agreement outlines the terms and expectations of how these assets would be affected in the event of a divorce.
Prenuptial agreement clauses usually include:
- Property held in your sole name or in joint names
- Savings held in bank accounts
- Premium bonds
- Inheritance
- Stocks and shares
- Pension pots
- Income
- Business interests
Protecting your assets doesn’t mean not giving your partner anything in the event of a divorce, but a prenup gives you both time to consider what would be fair to divide during a divorce proceeding.
2. Protection Against Debts
The last thing you want when getting a divorce is to have the nasty surprise of having your partner’s debt to deal with. A prenuptial agreement can ensure that legally, a partner who accrues personal debts or business debts will be fully responsible for those debts in a divorce.
This not only protects you financially but allows you to move on from the relationship without any lasting effects, such as your spouse’s debt following you. This is important if you consider what negative impact debt can have on your future loan opportunities, it may even impact your business.
3. Safeguards Your Business and Future Profits
If you’re a business women with your own company, it’s possible that without a prenup your spouse could claim to be entitled to half, or part of it at least. This means you would potentially lose money to an ex-spouse who has never put money, time or energy into your business.
Legally they’d be allowed to claim on part of your business as all assets are considered to be divided during a divorce. Having a prenup in place means your business and future profits can be protected from consideration.
4. Provides Clear Understanding
As a businesswoman, your time is valuable. A divorce proceeding, especially where there are valuable assets at play, can drag on for some time. Having a prenup would provide a clear understanding to a court, and to your partner about what is expected to be left alone when it comes to dividing assets.
You don’t have to cut your spouse off completely from any money, in fact, you may want to make sure they have a certain percentage of your assets. All these terms can be agreed upon within the prenup. This will minimise conflict during the divorce proceedings as the division of assets has been pre-agreed already.
5. Puts Provision in Place for Existing Children
It’s possible that if you’re getting married for the second time then, children from the first marriage could lose out in the event of one parent dying. A prenuptial agreement can consider all children from previous marriages to ensure they’re not cut out from receiving funds that otherwise could go to the spouse or other children from the second marriage.
This could also save a lot of confusion and prevent possible disputes from happening should you die.
Protecting your assets with a prenup…
As prenuptial agreements become more commonplace for those with valuable assets to consider, the more straightforward divorce can become. To ensure your prenup is completely legal and would uphold in court, it’s best to go through a legal professional to draw up the agreement.
Whilst it may not seem like a romantic gesture, being completely open and honest about your finances and position will only build trust between yourself and your partner. A prenuptial agreement would simply protect what you’ve both agreed to, so you shouldn’t worry about it impacting your relationship negatively. Prenups can empower businesswomen to take control of a situation before or if at all, it arises.
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained legal professional. Be sure to consult a family lawyer/solicitor if you’re seeking advice on family law. We are not liable for risks or issues associated with using or acting upon the information on this site.