A Contracting Out Agreement (Prenup) is a good way to make it clear now, how your business will be dealt with. Here are a few points to think about:

 

Do you want your business to remain your separate property or do you want it be divided equally as relationship property?

 

Will your spouse share in any appreciation (or depreciation) of your business? If yes, what percentage of the value accumulated during the relationship will apply?

 

What is the value of the business?

 

Will any relationship property (such as your income) be used as capital in the business?

 

Does or will your partner hold a position in the business? If so, what is the extent of that role and what impact, if any, it will have on how the value of the business will be distributed should your relationship end.

 

Will you be paying yourself fair market salary, or do you intend to take a smaller income so you can reinvest funds in the business?

 

If both of you have an ownership interest in the business, will you each maintain that ownership if your relationship ended? If not, what will happen to the business? Will one of you buy the other out?

 

What method will be used to determine the value of the business should your relationship end?

 

If you want clarity around what will happen to your business should your relationship end feel to call me on 021 077 7785 or email me at hayley@caringestates.co.nz