Prenups for Business Owners: How to Protect Your Business in Marriage

Let's be real for a second.

You've spent years building your business from the ground up. Late nights, countless sacrifices, that constant pit in your stomach wondering if you'd make payroll. And now? You're finally seeing success. Your business is thriving, you're in love, and you're ready to get married.

But here's what most entrepreneurs don't realize (and honestly, it's a bit scary): getting married without a prenup could mean your spouse owns 50% of your business, even if they never contributed a single hour of work. One divorce could wipe out everything you've built.

I know, I know—talking about prenups for business owners before marriage feels about as romantic as discussing tax brackets on a first date. But stay with me here, because we're going to explore why business owners (yes, you) need to think about this stuff before walking down that aisle.

In this guide, we're going to cover why your business is at risk without protection, what happens to businesses in divorce (spoiler: it's not pretty), exactly what to include in a business prenuptial agreement, how to create one without spending $10,000+ on lawyers, and real stories from business owners who got it right (and wrong).

Protect your business with HelloPrenup‘s entrepreneur-focused prenup for just $599—90% less than traditional attorneys.

Ready? Grab your favorite coffee and let's dive in.

Why Business Owners Need Prenuptial Agreements

Okay, but why do business owners specifically need prenups? Can't you just… not get divorced?

Well, here's the thing. According to the American Psychological Association, about 40-50% of first marriages in the US end in divorce. And while we all hope we're in that lucky 50-60%, hope isn't exactly a business strategy, is it?

The Reality of Business Assets in Divorce

Here's what shocks most entrepreneurs: 34.8 million small businesses operate in the US right now (that's 99.9% of all American businesses, according to the SBA). And you know what? Most of those business owners got married without thinking twice about protecting their company.

Let me paint you a picture of what can happen.

Meet Mark (not his real name, but his story is very real). Mark, 32, founded a SaaS startup that grew to a $2 million valuation. Pretty impressive, right? He got married without a prenup—because hey, they were in love, and prenups felt cold and calculating.

Five years later, the marriage ended. And his wife? She claimed 50% of the business, even though she'd never worked there, never contributed capital, never even attended a board meeting. The legal battle lasted 18 months and cost $85,000 in attorney fees. The stress nearly killed the business entirely.

Now think about this: Mark's story isn't unique. Divorce attorneys report that 62% have seen an increase in prenup requests, with 51% noting a rise specifically among millennials. Why? Because more young people are starting businesses, and they're getting smarter about protection.

What Happens to Your Business Without a Prenup

Okay, but what actually happens if you don't have a prenup for entrepreneurs? Let's break it down (and I promise, it's not as complicated as it sounds).

Forced Business Valuation First up, you'll need to get your business professionally valued. That's going to cost you anywhere from $5,000 to $50,000+, depending on your company's complexity. And here's the kicker—this happens whether you want it or not.

The 50% Problem In many states (especially community property states like California, Texas, and Arizona), your spouse could be entitled to 50% of your business's value. Not 50% of what you built before marriage—50% of the growth and appreciation that happened during your marriage.

California alone has 4.1 million small businesses (12.1% of the national total). If you're operating in a community property state without strategies to protect business assets in divorce, you're at the highest risk.

Operational Nightmare Your investors get nervous (because suddenly there's uncertainty about ownership). Your business partners start asking questions. You're trying to run a company while dealing with lawyers, court dates, and valuations. It's basically impossible to focus on growth when you're fighting over who owns what.

Loss of Control In some cases, courts can actually force you to sell your business or buy out your spouse's share. Imagine having to liquidate everything you built just to write a check to your ex-partner.

As one divorce attorney put it: “I've seen business owners lose their companies not because the business failed, but because the marriage did.”

Business vs Personal Assets: The Blurred Lines

Here's where it gets tricky (and why you really need to pay attention).

Most business owners think, “Well, I started my business before we got married, so it's separate property, right?”

Wrong.

In most states, even if you started your business before marriage, the appreciation and growth during your marriage becomes marital property. So if your company was worth $500K when you got married and it's worth $2 million when you divorce, that $1.5 million growth? Your spouse likely has a claim to half of it.

And it gets worse. Things like business income you earn during marriage, “sweat equity” (your work building the business), commingling business and personal funds (even accidentally), and using your home as an office—all of these create claims on your business. It's like financial quicksand—the more you struggle to separate things after the fact, the deeper you sink.

Jennifer, a 29-year-old freelance designer earning $150K annually, learned this the hard way. She thought her freelance business was “too small” to worry about. Turns out, in California, 50% of her future client contracts and revenue streams were considered marital property. She didn't know until it was too late.

What a Prenup for Business Owners Should Include

Okay, but what actually goes into a business owner prenup? What boxes do you need to check?

Let's break this down into bite-sized pieces (because nobody wants to read a legal textbook, right?).

Essential Business Protection Clauses

Think of these as the non-negotiables—the stuff every business owner absolutely needs in their prenup.

💡 Your Prenup Must Include:

1. Clear Business Ownership Designation Basically, you're saying: “This business is mine, separate property, not marital property.” Sounds simple, but you need explicit language. Name your company specifically—don't just say “any businesses I own.”

2. Growth and Appreciation Treatment This is the big one. You need to specify what happens to business value increases. Will appreciation stay separate? Will your spouse get a percentage? Define it now, or a judge will define it later (and you won't like their answer).

3. Income Allocation Here's a question most people don't consider: what portion of your business income is separate vs. marital? If you pay yourself $200K from your company, is that 100% marital income? Or is some of it considered business growth? Your prenup should spell this out.

4. Business Debt Protection Your prenup should protect your personal assets from business liabilities, and vice versa. If your company takes on debt, your spouse shouldn't be on the hook. If you personally take on debt, it shouldn't threaten the business.

5. Buy-Out Provisions If (worst case scenario) your spouse is entitled to some portion of business value, how would they be compensated? Cash payment? Installments over time? Other assets in exchange? Decide now, not in divorce court.

Specific Terms for Different Business Structures

Not all businesses are created equal, and your prenup needs to reflect your specific structure.

Sole Proprietorship Protection

If you're running a sole proprietorship (just you, no formal business entity), your prenup needs to designate the entire business as separate property, establish income tracking methods (business vs. personal), require completely separate bank accounts, and define what counts as “business expenses” vs. personal spending.

Honestly? If you're a sole proprietor, I'd also recommend forming an LLC for liability protection (but more on that in a bit).

LLC and Partnership Prenups

This is where things get more interesting. If you have an LLC or partners, your prenup needs to protect your ownership percentage (can't have your spouse claiming part of your shares), align with your operating agreement (make sure they don't contradict each other), include partner notification clauses (your partners deserve to know if marital issues could affect ownership), and prevent your spouse from becoming a de facto partner with voting rights or access to confidential information.

Your business partners will actually thank you for having a prenup. Nobody wants surprise co-owners who weren't part of the original deal. Understanding whether a prenup can protect an LLC is critical for business owners with this structure.

Corporation and S-Corp Considerations

If you're incorporated, focus on stock/share ownership designation (which shares are separate vs. marital), dividend vs. salary treatment (how is each classified for marital property?), and board position protections (ensuring your spouse doesn't get a board seat in divorce).

Intellectual Property and Trade Secrets

Okay, but what about the intangible stuff? The stuff that makes your business actually valuable?

Your prenup should protect patents, trademarks, and copyrights—any IP you create during marriage could be considered marital property without protection. If you develop a proprietary process, create a trademark, or patent an invention while married, specify it's separate property.

That secret sauce that makes your business unique? Protect it. The last thing you want is your spouse gaining access to trade secrets in a divorce.

Your client relationships are often your most valuable asset. Imagine your spouse claiming rights to your customer list or contact database. Your prenup should prevent this.

In some cases, you might want to include non-compete language preventing your spouse from starting a competing business using information gained during your marriage. (Check your state laws—these can be tricky.)

How to Create a Business Owner Prenup

Alright, so you're convinced you need a prenup (smart move). Now comes the question everyone asks: how do you actually create one without it taking forever or costing a fortune?

You've got two main routes, and honestly, the difference between them is pretty dramatic.

Traditional Route: Hiring Separate Attorneys

Let's start with the old-school way—hiring family law attorneys.

What it costs: $5,000 to $10,000 per person (so $10K-$20K total for both of you)

Timeline: 3-6 months of back-and-forth negotiations

The Process: You hire an attorney, your partner hires a separate attorney (required for enforceability), you each disclose your finances, attorneys draft and negotiate terms, multiple revisions and meetings, and finally, you sign.

Pros: Highly customized to your specific situation, strong legal enforceability, attorney handles everything

Cons: Expensive (like, really expensive), time-consuming (hope you're not getting married soon), can feel adversarial (two lawyers fighting creates tension)

When it's worth it: Honestly? If you have multiple businesses, complex international holdings, or your company is worth $10 million+, the attorney route makes sense. For most small business owners making under a few million? There's a better way.

If you do decide to go the traditional route, check out our guide on how to find the best prenup lawyer for your needs to make sure you're working with someone who understands business protection.

Modern Solution: HelloPrenup for Business Owners

Here's where things get interesting (and way more accessible).

HelloPrenup is an online platform that lets you create a legally sound prenup for $599 flat. That's it. No hidden fees, no hourly billing, no paying two separate attorneys.

Let's do the math: that's a 90% savings compared to the traditional route. For the same legal protections.

How it works: You and your partner both create accounts, you go through a guided questionnaire (think TurboTax for prenups), the platform generates state-specific clauses based on your answers, business-specific provisions are built right in, you can complete the whole thing in a few hours, and digital notarization is available same-day.

What's included for business owners: Business ownership designation clauses, income and asset protection language, debt separation provisions, intellectual property protections, state-specific legal requirements, and attorney-drafted templates reviewed by family law experts.

And here's the thing—HelloPrenup isn't some sketchy template site. It's backed by actual family law attorneys, and the documents hold up in court just like attorney-drafted prenups.

The stats are pretty compelling: 75% of HelloPrenup customers are ages 18-39 (millennials and Gen Z getting smart early), 52% of prenups are initiated by women (it's not just men protecting assets), and average completion time is 2-4 hours (vs. 3-6 months with attorneys).

Want to understand the full investment? Our detailed breakdown of how much prenuptial agreements cost in 2025 compares all your options.

Step-by-Step Process

Okay, but how does this actually work in practice? Let's walk through it.

Step 1: Gather Business Documentation Before you start, collect your articles of incorporation or LLC operating agreement, business tax returns (last 3 years), current business valuation (if you have one), list of business assets, debts, and intellectual property, and any partnership or shareholder agreements.

Step 2: Complete Financial Disclosure This is non-negotiable. Both of you need to fully disclose your finances—business and personal. Hidden assets equal invalid prenup. Don't skip this step or get creative with the numbers.

Step 3: Draft Business Protection Clauses Work through the HelloPrenup platform together. Answer questions about your business structure and ownership, how you want appreciation handled, income allocation between business and marital property, debt protection provisions, and what happens to the business in various scenarios.

Step 4: Review Together Here's where you talk it through. Make sure you both understand every clause. Ask questions. Modify things if needed. This shouldn't feel like one person forcing terms on the other.

Step 5: Notarize HelloPrenup offers digital notarization, or you can notarize in person. Either way, you need it properly executed to be valid.

Step 6: Store Securely Keep both digital and physical copies in secure locations. You'll hopefully never need it, but if you do, you'll be glad it's properly stored.

For a comprehensive walkthrough of everything you'll need, grab our complete prenup checklist designed specifically for business owners.

Timeline and Costs Breakdown

Let's compare this side by side, because the difference is pretty stark:

HelloPrenup Route:

• Cost: $599 total
• Time investment: 2-4 hours of work
• Timeline: Can complete same day
• Legal backing: Yes, attorney-drafted templates
• Customization: State-specific provisions included
• Both partners covered: Yes, one price for both

Traditional Attorney Route:

• Cost: $10,000-$20,000 total
• Time investment: Multiple meetings, weeks of back-and-forth
• Timeline: 3-6 months typically
• Legal backing: Yes, custom drafted
• Customization: Highly personalized
• Both partners covered: Each pays separately

Business Valuation (if needed):

• Cost: $2,000-$10,000
• May be required for either route if your business needs formal appraisal

For most small business owners earning between $50K-$500K annually with fairly straightforward business structures, HelloPrenup provides everything you need at a fraction of the cost.

Common Mistakes Business Owners Make

Alright, let's talk about where people screw this up (because learning from others' mistakes is way cheaper than making your own).

Waiting Until It's Too Late

Here's the thing about prenups: they must be signed before you get married. Not the morning of your wedding. Not the week before. Ideally, 3-6 months before.

Why? Because prenups signed under pressure can be thrown out in court. If you spring a prenup on your fiancé three days before the wedding, a judge might say, “Yeah, that was signed under duress. Invalid.”

Plus, honestly? Discussing money and business protection isn't first-date material, but it shouldn't be last-minute either. Give yourselves time to have real conversations about what feels fair.

I've heard from people who said, “Well, we can do a postnup after the wedding.” And you can—but postnuptial agreements are harder to enforce, require more negotiation (since you're already married), and frankly, harder to bring up. Get it done before the big day.

Not Updating Your Prenup

Business changes, right? You start a side hustle. You acquire another company. You sell your business and start a new one.

Your prenup from 2020 might not cover your 2025 business reality.

The good news? You can update prenups through amendments or postnuptial agreements. Major business events should trigger a prenup review: significant business growth or sale, starting a new venture, adding partners or investors, inheritance that affects business capital, or major structural changes (switching from LLC to corporation, etc.).

Think of your prenup like your operating agreement—it needs updates when circumstances change.

Incomplete Financial Disclosure

This is the number one reason prenups get thrown out in court.

You must—and I can't stress this enough—fully disclose all assets, debts, and business interests. All of them. Even the ones that feel small or irrelevant.

That side hustle generating $2K/year? Disclose it. That business loan you're personally guaranteeing? Disclose it. That LLC you're thinking about forming? Disclose your plans.

Hidden assets equal invalid prenup. It's that simple. The short-term temptation to hide something is not worth the long-term risk of your entire prenup being tossed.

DIY Without Legal Framework

Okay, but can't you just download a template from Google and fill it out?

Technically, yes. Realistically? Bad idea.

Here's why generic online templates fail: they're not state-specific (and prenup laws vary wildly by state), they miss business-specific language, they're often outdated or legally insufficient, they don't account for your particular business structure, and improper execution means they're invalid.

Every state has different requirements for prenups—witness requirements, notarization rules, disclosure standards, waiting periods, and more. A template from a random website won't know that.

This is why platforms like HelloPrenup actually work—they incorporate state-specific legal requirements and attorney-reviewed language, while still being affordable. To understand exactly what your state requires, visit our comprehensive guide on prenup laws by state.

Bottom line: don't risk your business on a $30 template you found online. If you're determined to go the DIY route, at least understand the risks in our article about creating a prenup without a lawyer.

State-Specific Considerations for Business Owners

Where you live matters more than you might think when it comes to prenups and business protection.

Community Property States (Higher Risk)

If you live in one of these states, your business risk just went up significantly: California, Texas, Arizona, Washington, Idaho, Louisiana, Nevada, New Mexico, and Wisconsin.

In community property states, the default rule is 50/50 split. Everything earned or acquired during marriage is split equally in divorce—including business growth.

California entrepreneurs need to pay special attention. With 4.1 million small businesses, California has the most small business owners in the country. And it's a community property state. Without a prenup, your spouse automatically owns 50% of marital business assets.

Think about it: you start a company in Texas worth $100K. You get married. Five years later, it's worth $1 million. Without a prenup, your spouse likely has a claim to $450K (50% of the $900K growth). Even though they never worked in the business.

In community property states, prenups aren't just helpful—they're essential.

Equitable Distribution States

The other 41 states use “equitable distribution.” This means assets are divided “fairly”—which doesn't necessarily mean equally.

Sounds better, right? Well… maybe.

The problem with equitable distribution is uncertainty. A judge decides what's “fair” based on factors like length of marriage, each spouse's income and earning potential, contributions to the marriage (including homemaking), who helped build the business, and future financial needs.

So you might get a “fair” split of 60/40, or 70/30, or who knows what. The lack of predictability is its own problem.

A prenup removes this uncertainty. You decide what's fair now, when you're in love and thinking clearly—not in a courtroom years later.

How State Laws Affect Your Business

Beyond community property vs. equitable distribution, state laws differ on business appreciation treatment, income classification, and prenup enforceability standards.

Some states automatically classify business appreciation as separate property if the business was pre-marital. Others classify it as marital property. Some split the difference based on “active” vs. “passive” appreciation.

Business income you earn during marriage is treated differently across states. Some states consider it fully marital. Others let you classify reasonable salary as marital and excess profits as separate.

Some states are very prenup-friendly (will enforce almost anything reasonable). Others scrutinize prenups heavily and may throw them out for minor issues.

Want to know exactly how your state treats prenups and business assets? Check out our state-by-state prenup laws guide—it breaks down the specifics for all 50 states.

Protecting Your Business Without a Prenup (Backup Strategies)

Okay, but what if you're already married without a prenup? Or what if your partner absolutely refuses to sign one?

You're not completely out of options (though your options are more limited and less airtight).

If You're Already Married: Postnuptial Agreements

A postnuptial agreement is basically a prenup signed after marriage. Same concept, different timing.

The good news: It's never too late to protect your business. Postnups are legally valid in most states.

The challenge: They're harder to negotiate. When you're engaged, you're both in “let's plan for our future” mode. After marriage, bringing up a postnup can feel like “I'm planning for divorce”—even though that's not necessarily true.

Postnups also face more scrutiny from courts because you're modifying existing marital property rights, not setting them before marriage.

That said, HelloPrenup offers postnuptial agreements too. The process is similar, just with slightly different legal considerations.

When postnups make sense: You've had a major business windfall after marriage, you're starting a new business and want protection, your business has grown significantly since marriage, you're bringing on partners who want ownership clarity, or you've inherited money you're investing in the business.

Business Structure Strategies

If prenups or postnups aren't happening, you can add some protection through business structures.

Trusts: You can place business ownership in an irrevocable trust with a trustee (not your spouse). This separates business ownership from personal marital assets. Downside: you lose some control, and it's complex and expensive to set up.

Family Limited Partnerships: If you have family members involved in the business, an FLP can restrict ownership transfer rights and limit your spouse's claim. Again, complex and requires family cooperation.

Buy-Sell Agreements: If you have business partners, a buy-sell agreement can include divorce provisions. For example: “If a partner divorces, they must sell their shares back to the partnership.” This prevents an ex-spouse from becoming your business partner.

Separate Finances Rigorously: This won't fully protect you, but it helps. Maintain completely separate bank accounts for business, never pay personal expenses from business accounts, document all business expenses meticulously, pay yourself a reasonable salary (document the calculation), and don't commingle business and personal funds under any circumstances.

Operating Agreements and Corporate Governance

Your business's operating agreement can include divorce contingency clauses like spousal consent provisions (requiring spousal consent for ownership changes prevents claims of hidden assets), transfer restrictions (limiting who can own shares in the business), right of first refusal (if someone's shares become available like in divorce, partners get first dibs), and forced buyout clauses (automatically triggering buyouts in case of divorce).

These don't replace prenups, but they add layers of protection.

Real Stories: Business Owners Who Got It Right (And Wrong)

Let's look at some real examples (names changed, but stories are true).

Success Story: The Protected Restaurant Owner

Remember Sarah from earlier? Let's dive deeper into her story.

Sarah, 38, owned three successful restaurants in Florida when she met her now-ex-husband. Her restaurants were generating about $1.2 million in annual revenue, and she'd built the business from scratch over eight years.

Before getting married, Sarah used HelloPrenup to create a comprehensive business prenup. Her prenup specified all three restaurants were her separate property, business growth during marriage remained separate, her husband had no claim to business income beyond her reasonable salary (which she documented), and her recipes, supplier relationships, and customer database were protected intellectual property.

Four years into their marriage, things fell apart. But here's the thing—the divorce settlement took only three months. Her ex-husband received other marital assets (their home, retirement accounts), but the restaurants never entered the equation.

Sarah's businesses continued operating without disruption. No forced valuation, no operational chaos, no investor panic. She told me: “The $599 I spent on the prenup saved me hundreds of thousands in divorce costs, and probably saved my businesses entirely.”

Cautionary Tale: The $2M Business Split

Now let's talk about Mark's full story (the one we mentioned earlier).

Mark, 32, founded a SaaS startup with two partners in Austin, Texas. The company grew quickly—$250K in year one, $800K in year two, $2 million valuation by year three.

Mark got married in year two without a prenup. He thought, “We're in love, and besides, my operating agreement protects the business.” (Spoiler: operating agreements don't protect against divorce claims.)

Year six, his marriage ended badly. His wife's attorney argued she was entitled to 50% of Mark's shares' appreciation during marriage—about $600K worth of equity. But here's where it got really messy:

Mark's business partners freaked out. The operating agreement didn't have divorce provisions, so theoretically, Mark's ex-wife could become a 25% owner of the entire company (half of Mark's 50% stake).

The legal battle lasted 18 months. Mark spent $85,000 in attorney fees. The stress caused him to step back from day-to-day operations. The company missed product deadlines, lost a major client, and nearly folded.

Eventually, Mark settled by taking a $350K loan against the business to buy out his ex-wife's claim. But the damage was done—two years of growth lost, damaged relationships with his partners, and a massive debt burden on the company.

“I thought spending $10K on a prenup was expensive,” Mark told me. “I didn't realize NOT having one would cost me ten times that, plus nearly destroy everything I built.”

Lessons Learned from Business Divorce Cases

According to the American Academy of Matrimonial Lawyers, 62% of divorce attorneys have seen increased prenup requests—and business protection is a top reason.

Here's what they've learned:

Most expensive business divorce settlements: Bezos divorce resulted in $38 billion in Amazon stock (no prenup), Wynn divorce split a $741 million casino empire, and a franchise owner in California faced a $15 million business forced sale.

Common patterns in business divorces without prenups: Average legal costs run $75K-$150K for business owners, timeline spans 2-4 years to fully resolve business asset division, 60% of businesses see revenue decline during divorce proceedings, and 40% of business partnerships dissolve after an owner's divorce.

How prenups prevented disasters: Protected businesses maintained stable operations, legal costs averaged $5K-$15K (mostly for other marital assets), settlements completed in 3-8 months vs. years, and business partners remained confident and committed.

If you want to see exactly what these protection documents look like, check out our collection of real prenup examples and samples to understand the language that actually works.

FAQ: Prenups for Business Owners

Let's answer the questions I get asked most frequently.

Can a prenup protect my LLC from my spouse?

Yes, absolutely—but you need explicit language designating your LLC and all its assets as separate property.

Here's the thing people misunderstand: simply forming an LLC doesn't protect you from divorce claims. An LLC protects you from business liabilities (lawsuits, debts, etc.), but it doesn't automatically prevent your spouse from claiming a portion of the LLC's value in divorce.

You need both entity protection AND a prenup. The prenup says “this LLC is separate property,” and the LLC structure provides the legal framework for that separation.

What if my business grows significantly during marriage?

This is exactly why you need specific appreciation language in your prenup.

Without it, here's what happens in most states: your spouse claims a portion of the growth. You started the business before marriage worth $200K, and now it's worth $1.5 million? That $1.3 million growth is marital property by default.

Your prenup can stipulate that all growth remains 100% separate property, you'll share a percentage of growth (maybe 10-20%), passive appreciation is separate but active appreciation is shared, or growth is separate but you'll compensate your spouse from other assets.

There's no one-size-fits-all answer—it depends on what feels fair to you both. But decide now, not in divorce court.

Does my spouse need their own lawyer to review the prenup?

It's highly recommended for enforceability, though not always legally required (depends on your state).

Here's why it matters: if your prenup ever ends up in court, and your spouse argues “I didn't understand what I was signing,” having had independent legal counsel makes that claim much weaker.

HelloPrenup's platform guides both partners through individually, so you both understand every clause. But you can each consult with attorneys if desired—many people do a quick 1-hour review with a lawyer just for peace of mind.

Having independent legal advice significantly strengthens your prenup's enforceability.

Can I update my prenup if my business situation changes?

Yes, through prenup amendments or postnuptial agreements.

Major business events should trigger a prenup review: you sell your business, you start a new company, you acquire another business, your business triples in value, you bring on partners or major investors, or your business structure changes significantly.

Think of it like updating your will when you have kids—circumstances change, documents should change too.

Will a prenup affect my business partners or investors?

Actually, business partners and investors often prefer you have a prenup.

Think about it from their perspective: they invested in a business with three equal partners. If one partner divorces and his spouse claims 25% of the company, suddenly they have an unexpected business partner who knows nothing about the industry.

A good prenup protects your partners from surprise co-owners, investors from ownership uncertainty, confidential business information from disclosure in divorce, and business operations from personal life disruptions.

Many sophisticated investors actually ask if owners have prenups. It's seen as responsible business planning.

How much does a business valuation cost?

Business valuations typically cost $2,000-$10,000, depending on complexity.

Small local businesses might be on the lower end ($2K-$5K). More complex businesses with multiple revenue streams, intellectual property, or complicated ownership structures can run $10K-$25K.

The good news? You might not need a formal valuation for your prenup. You can stipulate a methodology for valuation if divorce happens, rather than getting one now. Or you can agree on an estimated value for prenup purposes.

Many HelloPrenup users include language like: “Business will be valued using comparable sales method by mutually agreed appraiser” rather than paying for valuation upfront.

What if my spouse helped build the business?

This is where things get nuanced, and why you need careful prenup language.

If your spouse genuinely contributed to the business—worked there, provided capital, brought clients, made key decisions—then ethically, they probably deserve some recognition of that contribution.

Your prenup can address this by acknowledging specific contributions and compensating fairly, giving them a defined percentage based on documented work, treating them like an employee with agreed-upon compensation, or creating a hybrid approach (some growth is shared, some isn't).

The key is distinguishing between direct contribution (they actually worked in the business), indirect contribution (they supported you emotionally, handled home life so you could work), and no contribution (the business was completely separate from the marriage).

Courts look at this stuff, so your prenup should address it honestly.

Should business owners have a prenup?

Absolutely. If you own a business—whether it's a small side hustle or a multi-million dollar enterprise—a prenup is one of the smartest investments you can make. The average divorce costs $7,000-$15,000, but divorces involving business assets can easily exceed $50K-$150K in legal fees alone.

For business owners, the question isn't really “should I get a prenup?” but rather “can I afford NOT to?”

Consider this: 47% of small business owners are Gen X (ages 39-54), with 37% Boomers and 16% Millennials. These are prime marriage and divorce years. Without a prenup, you're essentially gambling your life's work on the hope that your marriage will last forever.

Does my wife get half of my business if I get divorced?

It depends on where you live and whether you have a prenup.

In community property states (California, Texas, Arizona, Washington, Idaho, Louisiana, Nevada, New Mexico, and Wisconsin), the default rule is yes—your spouse is entitled to 50% of any business value accumulated during the marriage, even if they never worked in the business.

In equitable distribution states (the other 41 states), a judge decides what's “fair”—which might be 50%, but could be more or less depending on various factors like who contributed to the business, length of marriage, and each spouse's financial situation.

The only way to definitively control what happens to your business in divorce is through a prenup that explicitly designates your business as separate property and defines how any appreciation will be handled.

How do I protect my business from my partner's divorce?

If you have business partners, protecting your company from someone else's divorce requires multiple strategies working together.

First, ensure all partners have prenups. This should honestly be a requirement in your partnership or operating agreement. When someone joins as a partner, they should be encouraged (or required) to get a prenup if they're married or planning to marry.

Second, include divorce provisions in your buy-sell agreement. These clauses can specify that if a partner divorces, they must sell their shares back to the partnership or give other partners right of first refusal. This prevents an ex-spouse from becoming an unwanted business partner.

Third, add transfer restrictions to your operating agreement. Limit who can own shares and require unanimous partner approval for any ownership transfers—including those resulting from divorce settlements.

Fourth, consider key person insurance that could fund a buyout if a partner's divorce forces a business valuation or share sale.

Finally, keep excellent documentation of each partner's capital contributions, work hours, and value-add to the business. This creates a clear record that could be useful if a divorcing partner's spouse claims they contributed to the business's success.

Getting Started: Your Prenup Action Plan

Alright, you're convinced you need a prenup. Now what? Let's create a realistic action plan.

30-Day Roadmap for Business Owners

Week 1: The Conversation Have initial conversation with your partner (frame it as smart planning, not lack of trust), discuss high-level goals (what do you both want to protect?), agree on timeline and process, and decide between attorney route vs. HelloPrenup.

Week 2: Documentation Gathering Collect business tax returns (last 3 years), get your operating agreement or articles of incorporation, list all business assets, debts, and intellectual property, prepare personal financial statements, and gather any partnership or investor agreements.

Week 3: Drafting Create HelloPrenup accounts (or meet with attorneys if going traditional route), work through questionnaire together, draft business protection clauses, review state-specific provisions, and discuss any areas where you disagree.

Week 4: Finalization Review complete draft together, ask questions about anything unclear, make any final revisions, notarize the document (digital or in-person), and store copies securely (digital + physical).

Total timeline: 30 days. Compare that to 3-6 months with traditional attorneys.

Essential Documents to Gather

Before you start, collect these documents (trust me, having them ready makes everything faster):

Business Documents: Business tax returns (last 3 years), articles of incorporation, LLC operating agreement, or partnership agreement, current business valuation (if you have one), list of business assets (equipment, inventory, intellectual property, real estate), list of business debts and liabilities, any patents, trademarks, or copyrights, and client lists or databases (for documentation purposes).

Personal Documents: Personal tax returns (last 2 years), bank account statements, investment account statements, retirement account balances, real estate owned (deeds, mortgage statements), personal debts (student loans, credit cards, car loans), and any trusts or inheritances.

Existing Agreements: Any existing partnership agreements, shareholder agreements, buy-sell agreements with business partners, and any prior prenups or divorce decrees (if applicable).

HelloPrenup: The Smart Choice for Entrepreneurs

Let me be straight with you: I'm recommending HelloPrenup because the value proposition is unbeatable for most small business owners.

Here's why entrepreneurs specifically choose HelloPrenup:

90% Cost Savings $599 vs. $10,000+. That's money you can reinvest in your business, your emergency fund, or literally anything else.

Business-Specific Clause Library The platform includes clauses specifically designed for business owners: LLC protection language, intellectual property provisions, business appreciation treatment, income allocation formulas, and debt separation clauses.

Speed Complete in hours, not months. When you're running a business, time is money. The traditional attorney route takes 3-6 months of back-and-forth. HelloPrenup can be done in a weekend.

Same Legal Protections This isn't some sketchy shortcut. HelloPrenup's documents are drafted by family law attorneys and tailored to your state's specific requirements. They hold up in court just like attorney-drafted prenups.

Real User Results: 75% of users are ages 18-39 (millennials and Gen Z entrepreneurs), 52% initiated by women (it's not just men protecting assets), 4.8/5 star reviews, and thousands of business owners have used it successfully.

The Process: Both partners create accounts ($599 total, not per person), answer guided questions about your business and finances, platform generates state-specific prenup, review together and make edits if needed, notarize digitally or in-person, and done—your business is protected.

Think about it this way: you probably spend $599 on software subscriptions or business services without blinking. Protecting the entire business you've built? That's the smartest $599 you'll spend.

To learn more about what makes a comprehensive premarital agreement, read our detailed guide on what is a prenuptial agreement and why it's essential for business owners.

Conclusion: Protecting Your Life's Work

Let's bring this home.

You've spent years building your business. Late nights, sacrifices, risks that kept you up at night. Your business isn't just an asset—it's your life's work, your identity, your future.

Getting married shouldn't put all of that at risk.

A prenup for business owners isn't planning for divorce—it's planning for success. It's saying, “I love you, I'm committed to us, AND I'm responsible enough to protect what we've both built separately before we build together.”

Think about it: the average divorce costs $7,000-$15,000. Divorces involving business assets? Way higher—$50K-$150K in many cases. Business owners who went through divorce without prenups report losing an average of two years of business growth due to the stress and distraction.

Compare that to $599 for a HelloPrenup that protects everything.

The statistics are clear: 34.8 million small businesses in the US, 40-50% divorce rate, 62% of divorce attorneys seeing increased prenup requests, and business owners without prenups losing significant equity or being forced to sell.

You've worked too hard to leave this to chance.

Your business deserves the same protection you'd give any valuable asset. Actually, it deserves more—because unlike a house or a car, your business is irreplaceable. You can't just buy another one if this one gets split in half.

Here's what I want you to do:

Have the conversation with your partner this week (not next month, not “eventually”—this week), frame it the right way (“I want to protect what we're building together by being clear about what we built separately”), gather your business documentation, create your prenup with HelloPrenup, get it notarized, store it securely, and go back to growing your business with peace of mind.

Your business is your legacy. Protect it.

Ready to get started? Create your business prenup with HelloPrenup today for just $599, and join thousands of entrepreneurs who made the smart choice to protect their life's work.

Because the worst time to wish you had a prenup is when you're sitting in divorce court, watching everything you built become a negotiating chip.

Protect your business. Protect your future. Get it done.

Need a comprehensive overview before you begin? Start with our complete guide to free prenuptial agreement templates to understand the basics, then create your customized business protection document with HelloPrenup.