Combining Marriage and Business: How To Protect Your Startup With a San Jose Prenuptial Agreement
Love and entrepreneurship often require the same ingredients: trust, commitment, and long hours of hard work. However, if you are launching a startup in San Jose while planning a wedding, it’s wise to consider what happens if things don’t go according to plan, on either front.
A prenuptial agreement (or “prenup”) offers an easy and strategic way to protect your business interests while preserving transparency and trust in your relationship. Our experienced San Jose prenuptial agreement lawyer helps clients in these cases and explains how a well-drafted prenup could be one of your smartest early investments.
Why San Jose Entrepreneurs Should Consider a Prenup
California is a community property state. That means that, under the California Family Code, all property, assets, or debts acquired during the marriage are generally split 50/50 in a San Jose divorce. Assets include any businesses that gain value during the marriage.
Without a prenuptial agreement in place, your startup could be vulnerable to division, liquidation, or contested valuation if the marriage ends. Here are some key risks a San Jose prenuptial agreement can help address:
- Business equity ownership disputes;
- Future income or profits from being classified as marital property;
- Intellectual property and proprietary data exposure;
- Valuation disagreements if one spouse joins or supports the business;
- Debt liability if your spouse takes on business-related obligations.
Whether you’re bootstrapping, pitching to VCs, or just getting traction, clarity on what happens in a Santa Clara County divorce can help prevent future business disruption.
What to Include in a Startup-Focused Prenuptial Agreement In San Jose
Whether your startup is already running or you’re in the early stages of building, you’ll want to tailor your San Jose prenuptial agreement to reflect your business goals and legal obligations.
In the event of a divorce in Santa Clara County, courts will only uphold a prenup if it’s transparent, fair, and meets the standards outlined in California’s Uniform Premarital Agreement Act (UPAA). Here’s what to include:
- Specify whether the startup is subject to division in a San Jose divorce.
- Specify how the business gets valued in the event of a divorce.
- Clarify who is responsible for business-related debts.
- Address compensation or reimbursement if your spouse works for the company.
- Protect trade secrets or future business interests via non-compete clauses or confidentiality protections
You’ll also need to fully disclose your finances in writing and allow each party enough time to review the agreement with separate legal counsel.
To Discuss Your Options, Consult Our Experienced San Jose Prenuptial Agreement Lawyer Today
Start-ups deserve just as much protection as your relationships. A prenuptial agreement tailored to your business can safeguard what you’re building and minimize stress down the road.
At Argyris Mah, LLP, our San Jose prenuptial agreement lawyer has extensive experience protecting the rights of business owners in Santa Clara County. If you are launching a startup, we can help you draft a solid, enforceable agreement that supports your business and your marriage. To discuss your options, schedule a consultation today.
Sources:
leginfo.legislature.ca.gov/faces/codesTOCSelected.xhtml?tocCode=FAM&tocTitle=+Family+Code+-+FAM
leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=FAM&division=4.&title&part=5.&chapter=2.&article=2.
