Do you live in California and own your own company? Are you getting married?
/Do you live in California and own your own company? Are you getting married?
When it comes to marriage, there are many important decisions to make. One of the most important is whether or not to get a premarital agreement in California.
This is especially true if you own equity in a business before marriage; because if you work on that business during your marriage, it may become in part community property, entitling your spouse to a portion of that business.
For example, let’s say you are the founder and owner of an innovative B2B service company prior to getting married. After tying the knot with your partner, you continue working on this company as normal. Unfortunately for both parties involved, without proper planning through a premarital agreement; under California law this means that your spouse may be entitled to some ownership rights over this business due to its classification as community property—even though they never contributed financially or physically towards its growth and success.
On the other hand, if you have already worked in a separate property venture (like our hypothetical B2B service) but now only serve as a passive investor instead of actively working on it anymore—a premarital agreement can help protect those assets from being considered community property should any disputes arise later down the line.
Similarly, even if both spouses contribute money and/or labor into their separate businesses after getting married—the Van Camp or Pereira approaches allow for equitable apportionment between them so no one person has exclusive rights over what was once theirs alone before entering into matrimony. In conclusion: when considering all these factors together—there’s no doubt why having an airtight premarital agreement is such an important step for couples who own equity in businesses prior to getting married. Not only does it provide legal protection against potential disputes arising out of contributions made by either party while they were still single; but also offers peace-of-mind knowing exactly where each individual stands regarding their respective investments going forward within their new relationship status.