I run a small design business here in Texas, nothing crazy but it’s finally doing well after a few rough years. The weird part is, the more it grows, the more I’ve started thinking about how tied up my personal life is with all of it.
I’ve seen friends lose half their business after a divorce, and it honestly freaked me out a bit. It’s not even about trust it’s just realizing how fast something you built from scratch can get tangled up in stuff that has nothing to do with work.
I’m in a serious relationship now and things are good, but for the first time, I’ve actually caught myself thinking about stuff like prenups or protecting ownership. Never thought I’d be that person, but here we are.
Any other business owners hit that point where you start looking at marriage a little differently once there’s a company involved?
Owning a business in Texas made me think differently about marriage
byu/Extreme-Eagle-3555 inEntrepreneur
Posted by Extreme-Eagle-3555
20 Comments
That’s actually a really valid concern. I’ve seen a few friends go through messy splits that wrecked their businesses getting clarity early, like through a prenup, can save a ton of stress later
Any business you do is always at risk of being lost, with our without marriage
Oh, yes, I do think about that. Even though I’m not in a relationship right now, I’ve given it a lot of thought because I want to protect my business and eventually pass it on to my kid. So yeah, a prenup will definitely be happening if I’m ever in a relationship that leads to marriage
Marriage is a contract. People should think of it like that. And being married is like running a business. It takes constant upkeep, effort, long and short term planning, and with a business partner you have to learn to compromise and run everything by them. Not a bad analogy!
I’m not that person but I ended up signing a non-marital agreement thru a lawyer to protect my business and my partner from any liability or debt from the other. It was cheap and makes sense in these situations, agreement can include what happens if y’all get married.
Last company I worked for had to sell out to a competitor because the owner’s wife caught him banging the marketing lady on the regs and she forced a buyout for her half in the divorce, for which there was not enough cash and liquid assets for. That company was based on Tennessee, It’s not just Texas, it seems most states allow spouses to have a claim to a business started and run by the other spouse without a prenup if the business precedes the marriage or some other kind of contractual agreement. You should talk to a lawyer about your options to safeguard yourself.
Not gonna lie, this stuff gets messy fast if you don’t think ahead. once you start mixing business and relationships, it’s way too easy for things to blow up later. If you built it, protect it early no one else will
assets going in my momma name
yeah that’s a real thing man, once your business becomes your main asset it changes how you look at relationships, it’s not about love or trust it’s just protecting what you built, lots of founders set up prenups or separate ownership agreements early so it never gets messy later, it’s way easier to have that talk while things are good than after things get complicated
People have car insurance and health insurance.
I consider a prenup business insurance / asset insurance.
As an asset holder, it’s irresponsible to not have insurance to protect what you built on your own prior to the marriage.
Definitely worth making sure you talk to a divorce attorney to have a solid prenup in place.
Prenup should not be seen as an option but mandatory
I am a co-founder of a few companies & took the view that my partner supported me all along, including when I left a high-paying career to enter the choppy waters of the start-up world. After a few difficult years it looks like we are getting somewhere. I am in the process of giving her some shares in one of the companies as a thank-you for the support & the money she lent the company. That aside, my view is that she supported me in making the jump, so if the marriage cards do fall, then, they will fall where they fall. Maybe I will end up with only half a castle, but without her there would be no castle. I guess a lot depends on the level of support you get from the significant other.
My old man was a divorce attorney. He always said “it’s morbid and sad, but you have to go into marriage thinking what if it doesn’t work out. Protect yourself as best you can. Nobody getting married is planning to get divorce, it just happens. Try to prepare yourself before you even get married.” Thought it was great advice. He’s actually working on a book right now titled “everything you need to know about divorce, before you ever get married.”
Prenup.
Happened to my old man. He owns a printing company, he built it, runs it, does everything. When my parents got divorced and my mom was entitled to half of the business and my dad had to buy her out. He likely will never fully recover.
Take that for what it’s worth. It takes two to tango but I know if that didnt happen, he’d be retired / could retire and just chill out.
This is what prenups are for.
I’m a female and I highly recommend and encourage pre nups
I’m engaged and own a business. A prenup is a must. I’ve been divorced and had to fight to keep what I had spent my whole life building. Never again. Prenups cause some conflicting feelings, but, are absolutely necessary.
I brought up the idea of a prenup with my fiancé yesterday. Thank god her response was, “I was wondering when you were gonna bring that up. I think it’s a fantastic idea”
Major sigh of relief to know if shit hits the fan I won’t risk losing my livelihood. Happy to split everything we build together but nobody is walking away with what I’ve built by myself.
Most definitely. If you found the right person, they won’t mind signing a prenup once the time comes as long as you express the experiences you’ve seen around you with people who own businesses and the terrible things that can happen. It’s not that you don’t trust your partner however anything can change at any moment and it’s important to be prepared. Professional fights don’t go to a fight without training. You shouldn’t go into a marriage without having a safety night even though the intention is to spend forever with them. Jordan Peterson has a great example of why signing a prenup is important if you’re interested.