You may feel as if things are finally going right for you. You just started a business and got engaged to the love of your life. Things couldn't be going any better, but that hasn't stopped you from wondering whether you should take steps to protect yourself and your business in the event of a divorce.
At first, you may dismiss the notion that you could need a prenuptial agreement since you aren't even sure whether this business venture will turn into anything. You don't see the use right now because it isn't like your business is successful and you are bringing in a lot of money. Right? Wrong.
You absolutely could benefit from a prenup
There is no plainer way to put it. You don't have to be rich to need a prenuptial agreement. You may be on cloud nine now as far as your personal relationship goes, but it may not stay that way. Hopefully it will, but what would be the harm in having an insurance policy of sorts? That's the function of this type of agreement. Rich people usually protect their money in other ways and just use a prenup to make everyone aware of what happens if there is a divorce.
You, on the other hand, might have a winning business on your hands, and if you fail to protect it, you could regret it. You might say that entering into a prenuptial agreement could mean that you expect your business to succeed. Even though you may be able to prove you started the business prior to your marriage, that does not mean that it remains solely yours in a divorce.
As your business grows and appreciates during the marriage, that increase will more than likely become part of the marital estate unless you agree otherwise. If you fail to come to an agreement about how you will treat it if you divorce, the court will do it, and that could get expensive. It could also result in your ex-spouse owning part of your business.
What you can do now
If you enter into a prenuptial agreement now, you can come to an arrangement that satisfies both of you. As long as it doesn't violate Utah law, violate public policy or leave your former spouse destitute, the court will more than likely go along with your agreement. Of course, like any other insurance policy, it must have the right wording and execution in order to remain valid and provide you with the coverage you need when the time comes, which may require some legal assistance.