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Marriage and a family business: the utility of a marital contract

On Behalf of | Jul 25, 2016 | Divorce

One point made by a commentator in a recent family law article is certainly arguable, namely, that the baby boomer demographic has largely viewed marriage “through rose-colored glasses.”

In fact, reams of statistical evidence don’t support that. Instead, they show boomers bucking the trend in that they divorce at a higher rate than any other group.

Another point made in the same piece that does seem unarguable, though, is that couples from all demographics — boomers and otherwise — who are entering marriage with substantial assets derived from an existing business need to focus in upon that fact and set of circumstances dispassionately and most carefully.

Because, obviously, you don’t want to lose those assets down the road in a divorce.

And that could easily enough happen without a bit of exercised due diligence and timely legal planning.

For many couples, that spells a prenuptial agreement. Although hat contract has been flogged by adverse public opinion often enough in the past for its alleged ardor-dampening propensities, prenups — and postnuptial contracts, as well — are increasingly being seen in light of their clear planning utility.

And that utility is patently on display in many cases where a family business is in existence when a marriage is contemplated.

For starters, a marital contract is a vehicle through which couples can talk early on about what is important financially to them. With the help of a proven family law attorney, they can address important considerations and draft them to address future contingencies.

And that can promote both certainty and confidence going forward.

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