Prenups Grow in Popularity Among Aspiring California Business Owners
Many in California’s booming startup industry have undoubtedly followed the divorce of Jeff and MacKenzie Bezos with rapt attention. The divorce, one of the largest in the history of the world, saw MacKenzie Bezos receive a 4% stake in Amazon, Jeff Bezos’ massive retail empire. Now, Yahoo recently reported that prenuptial agreements are on the rise among young startup owners looking to get married.
Community property and business ownership
While the divorce took place in Washington state, both Washington and California operate on the principle of community property when it comes to dividing assets in a divorce. Community property means that all assets acquired during a divorce—outside of limited exceptions like personal gifts—are considered marital property and will be divided equally by value among both partners. As the Bezos’ divorce highlights, this also includes shares of a business.
This can create a serious concern, not just for individuals looking to protect their personal wealth, but also for other shareholders in the business. After all, someone’s spouse becoming a major shareholder in a company as a result of a divorce can have a major impact on the business.
Atascadero Family Lawyer for Prenuptial Agreements
As prenuptial agreements become more widely accepted among young people, I hope it will provide an opportunity for a broader understanding of what prenups are and can be. The popular perception of prenuptial agreements—that they are all about money—is far from the truth. I help my clients create prenuptial agreements that cover everything from childcare and education to home responsibilities and possessions with personal significance.
If you are interested in creating a prenuptial agreement in Atascadero or San Luis Obispo, call Ernest A. Casacca Attorney at Law today at (805) 466-5888 to schedule an initial consultation.