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Why a prenup may be important for entrepreneurs

Entrepreneurs in Maryland often don't consider entering into prenuptial agreements before getting married, instead concentrating on all of the myriad tasks involved in getting their businesses off of the ground. There are several very good reasons why an entrepreneur may want to have one, however, as a divorce may severely injure the company.

While a business that was started before the marriage will be considered to be the owner's separate property, any increase in its value that occurs during the marriage will be considered to be marital property. This means that the owner's spouse will be entitled to an equitable share of that appreciation absent an agreement to the contrary.

Another potential issue may occur if the owner's spouse runs up significant debts. In some cases, the creditors may then be able to try to get some of the company's assets to recoup the amounts owed. If the spouse is awarded a portion of the business, the owner will likely also be forced to cut jobs. With a prenuptial agreement, an entrepreneur may be able to protect the business from being divided in any divorce that may later occur.

At the end of a marriage, it is common for spouses to be very emotional and to try to go after all assets they possibly can. While most people don't enter into marriages with the idea that their unions will later end, it may still be smart for people to have prenuptial agreements in place. Entrepreneurs who are planning to marry may want to talk to family law attorneys about prenuptial agreements that can protect their business and financial interests if things later fall apart.

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