Do you have a medical practice? Maybe you are a senior partner in a law firm? Or you own or co-own a business. In any of these scenarios, if you hire someone who is then single and who later becomes a partner, shareholder or co-owner in any capacity, your business is at risk…unless you required the individual to have a prenuptial agreement in the future.
As an explanation, you are a shareholder or partner of Company ABC. You hired John Doe about 3 years ago, and he was a brilliant “up and comer.” In fact last year you gave him shares of the stock, and/or made him a partner. John Doe finally had the financial means to ask Sally to marry him, and they got married and lived sort of happily for 6 ½ years, and then filed for divorce.
John Doe didn’t have a prenup. Sally is entitled to 50% of all of the marital assets, which means that she is entitled to 50% of the value of the stock…or worse…she is entitled to 50% of the value of the company, from the date of marriage to the date of termination of the marriage.
So, what does that mean to Company ABC? That means, that it may end up with a forensic accountant going through all books and records to determine a fair value of the company! That means that the company will be part of the divorce process.
Now, let’s go back in time to when John Doe was being hired. If Company ABC required as part of the employment agreement that John Doe would be required to have a prenuptial agreement to carve out Sally’s interest in the Company, then that prenup could have benefited the company by keeping it out of the court process of divorce.
The Ohio prenuptial attorneys at Joseph & Joseph & Hanna, Co. LPA stand ready to assist in protection of your business.
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