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Personalized Legal Attention Call

865-622-7768

"During this time of emergency, our office will remain open servicing the needs of our community. Our office has the capability to perform consultations for new clients, meetings with existing clients, depositions, meditations and even Court hearings through live video or over the phone."

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Prenuptial or postnuptial agreements may ease business worries

On Behalf of | Dec 21, 2019 | Divorce

When a Tennessee resident owns and operates a separate business before a marriage, he or she may wish to consider asking for a signed prenuptial agreement. In some cases, a soon-to-be marriage partner may view this request as offensive or an indication that a potential spouse lacks confidence in the relationship’s success. Having a prenup, however, may provide comfort and assurance that an individual’s own separate property will remain in his or her possession should a divorce occur.

As noted by CEOWORLD magazine, a premarital agreement clearly lists any preexisting assets, and a spouse’s signature may act as a waiver from a future claim. While a signed waiver may result in additional ownership protection, couples who do not have a prenup may always create a postnuptial agreement after they get married.

Postnuptial agreements may determine property division

After a marriage takes place, spouses have the legal right to draft an agreement to determine in advance how to divide an asset in the event of a divorce. During a divorce in Tennessee, a family court judge may otherwise divide an asset or property by its fairness to each spouse. Both spouses must agree to a postnup’s terms and sign it for a court to enforce its provisions. Agreements signed under duress or with incomplete information may not hold up in a courtroom.

A spouse may not have a right to claim separate property

Under the Volunteer State’s equitable distribution laws, a separate business started before a marriage generally remains part of an individual’s own property and is not subject to division. A soon-to-be-ex-spouse, however, may have a legal right to some of the income from the business earned during a marriage. If a spouse participated in the business’s management or worked as an employee during the marriage, he or she may file a claim for a fair payout during a divorce.

Dividing assets such as a business during a divorce is oftentimes complex. Determining how much a company is worth ahead of time may help in negotiating a fair settlement.