|
Users viewing this topic:
none
|
|
Login  | |
|
Pre-Nup for a family business - 9/23/2008 11:14:22 PM
|
|
|
gmm28
Posts: 2
Joined: 9/23/2008
Status: offline
|
I'm in the situation of going back to a family business. 2 family members and I will be operating this business, with distant relatives holding some shares of the company. They get a check while we do the work type of thing.
The problem is, it was advised to me that me and my fiancee sign a pre-nup for this business to protect the business in case of an emergency. I love her to death, as does my family, and I will not and would never leave her.
My question is, what could I do to convince her to sign this pre-nup, that we don't really need (it's just a technicality), even though I am not worried about anything happening to us in the future? Right now she is incredibly upset about it, which is understandably so.
Any advice or thoughts are appreciated.
|
|
|
|
|
RE: Pre-Nup for a family business - 9/24/2008 12:05:48 AM
|
|
|
GroupW
Posts: 2913
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
Status: offline
|
It's not uncommon for business partners to want to make sure that a divorced spouse doesn't become a major shareholder. I'd check with a lawyer to see what other alternatives may exist. There may be options here that you're not thinking of.
That said, it's a very sticky issue. There are legitimate reasons for your partners to want this, and legitimate reasons for your honey to blow a gasket over it.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
|
|
|
|
|
RE: Pre-Nup for a family business - 9/24/2008 4:31:32 PM
|
|
|
SurpassingPeace
Posts: 108
Joined: 11/21/2007
Status: offline
|
Have you thought of incorporating the business? I believe this would take care of the prenup as well as protect you from personal liabilility in a variety of other situations. Many people don't realize it is relatively easy and inexpensive to incorporate a business. This would serve to protect the others in the business. I would consult an attorney in your state for the particulars necessary.
Karen
|
|
|
|
|
RE: Pre-Nup for a family business - 9/24/2008 5:17:00 PM
|
|
|
tn1
Posts: 167
Joined: 9/22/2008
Status: offline
|
Actually, a pre-nup is a good idea for any couple where one or both parties have any significant financial resourses or debt. It simply recognizes the 50% possibility that the marriage might end in divorce. We all enter marriage with the best of intentions, but to ignore the 50% possibility that one's marriage might end in divorce reminds me of the proverbial ostrich burying its head in the sand.
In Biblical ancient near-eastern cultures, including the Jews, the ketubah, marriage contract/covenant declared such financial issues. The dowry served a similar purpose. The dowry was typically 1 year's salary (the bride price) plus the woman's full family inheritance. If a man decided to divorce his wife for selfish reasons (the hateful divorce), then he had to pay her the full dowry. If she in some way broke the marriage covenant, he did not have to pay her anything. The dowry system was set up to protect women and to reduce the number of divorces.
|
|
|
|
|
RE: Pre-Nup for a family business - 9/24/2008 5:27:20 PM
|
|
|
pbaribeault
Posts: 1050
Joined: 4/29/2005
Status: online
|
She might be more understanding if you try to express yourself in a way like, "I know we will be married forever. I'd never marry you and the try to make sure that I had a back door open. I know you and I love you... but my business partners don't know you like I do. What they know is that love is blind and 50% of marriages end in divorce. I don't think that signing off that you won't continue to own business shares if our marriage dissolves is immoral or all that insulting. Firstly, becuase I know it would never happen, and secondly, if I fail you so spectacularly that you can no longer live with me, I know that you would never want to take business shares away with you. That's not the kind of person that you are... so why not just sign to show that that's not the kind of person that you are... and on our 60th anniversary, when most of them are dead, we'll laugh that they didn't have faith in us for the long run!"
|
|
|
|
|
RE: Pre-Nup for a family business - 9/25/2008 12:59:14 AM
|
|
|
jaimestarcross
Posts: 779
Joined: 11/28/2005
Status: offline
|
Questions for you....
did all the other business partners sign pre-nups?
Are you signing a pre-nup?
Why not incorporate the business?
|
|
|
|
|
RE: Pre-Nup for a family business - 9/25/2008 7:24:01 AM
|
|
|
gmm28
Posts: 2
Joined: 9/23/2008
Status: offline
|
As far as I can tell, at least 1 if not both partners have signed a pre-nup. One of the partners have told me that it is just something our accountant recommended, as it is just a technicality that will keep everything in the family and ensure the survival of the business should something happen in our marriage (which would kill me if it did).
I appreciate all of your responses. It's nice getting other people's view of things. I've tried to tell her it's just a technicality and that I love her forever and for always. I told her it's nothing my business partners have against her because they love her to death as well. She just feels that it's all about money and that the pre-nup just says that she can be family as long as it doesn't pertain to the business. Last time we discussed it she agreed to sign it, but it still tore her up emotionally.
|
|
|
|
|
RE: Pre-Nup for a family business - 9/25/2008 9:12:38 AM
|
|
|
MC4JC
Posts: 201
Joined: 7/6/2008
From: Minnesota
Status: offline
|
Personally I don't like pre-nups except in certain cases. In general, unless you are making millions of dollars, then I would never sign a pre-nup.
But in this case, its business partnership. IF the other family members have pre-nups with their spouses, then there should be no reason your fiancee should not agree to it.
|
|
|
|
|
RE: Pre-Nup for a family business - 9/25/2008 9:40:45 AM
|
|
|
Sadey
Posts: 531
Joined: 7/25/2007
Status: offline
|
I understand her feelings. In some families you may marry into it but never are really family. Maybe thats what she is hearing? Being in a family business is tough, marrying into one is tougher.
Is your business set up that if you die she is taken care of? Or does everything you worked for go back to the family? I would suggest that you have a lawyer for her so she can make sure that she and her future children will be provided for.
|
|
|
|
|
RE: Pre-Nup for a family business - 9/25/2008 10:12:20 AM
|
|
|
GroupW
Posts: 2913
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
Status: offline
|
quote:
ORIGINAL: Sadey
I understand her feelings. In some families you may marry into it but never are really family. Maybe thats what she is hearing? Being in a family business is tough, marrying into one is tougher.
Is your business set up that if you die she is taken care of? Or does everything you worked for go back to the family? I would suggest that you have a lawyer for her so she can make sure that she and her future children will be provided for.
Definitely good points to think about there.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
|
|
|
|
|
RE: Pre-Nup for a family business - 9/25/2008 2:22:03 PM
|
|
|
jaimestarcross
Posts: 779
Joined: 11/28/2005
Status: offline
|
Don't discount her feelings...
if she feels that strongly about the pre-nup(it's not just a technicality to her) -she shouldn't be pressured into signing... it's not a loving thing to
do to the woman who'll one day be your wife and mother of your children.
I would let the subject drop - it's not worth all the emotional
upheaval and stress.
|
|
|
|
 New Messages |
 No New Messages |
 Hot Topic w/ New Messages |
 Hot Topic w/o New Messages |
 Locked w/ New Messages |
 Locked w/o New Messages |
|
 Post New Thread
Reply to Message
Post New Poll
Submit Vote
Delete My Own Post
Delete My Own Thread
Rate Posts |
|
|
Forum Tools
Printable Version
