Prenup to protect a business


#1

I own a business with my business partner. We both own 50% of the business. We put in our operating agreement that if one of us gets married, then there has to be a prenup in order to protect the business. I was told that in order to do that, alimony either has to be waived completely or it has to say that there will be payments of a fixed amount for a fixed period of time. If none of those two things are in the prenup and it comes to an alimony lawsuit, then the judge can pretty much do whatever he/she wants and even order to sell equipment in order to pay for alimony. Is that true?

What if it said that all future interest in the company is waived, but the income from the company based on two years income tax returns, for example, could be used for alimony payments, but not any assets/cash/company investments? Would that protect the company?

Are there any other ways to protect the business?


#2

This seems like a really complicated issue. I would hire an attorney. I’m no expert on pre-nups, but I think there is a lot of flexibility as to what you can put into them. The stringent guidelines you described don’t seem accurate to me.


#3

I am not aware of any rule for pre-nuptial agreements that requires a waiver of alimony or set alimony in order to deal with a business interest. I’ve also never heard of a requirement that a person sell off business assets to pay alimony. I would advise using an attorney to draft any pre-marital agreement you enter. They are complex agreements, and you want to make sure that the agreement is enforceable.