Prenuptial Agreement for Entrepreneurs

If no other arrangements are agreed upon before the marriage, the legal standard case of the community of accrued gains applies following Section 1363 of the German Civil Code. According to this, in the event of a divorce, the assets accumulated by both spouses during the marriage are divided equally. This means that the spouse who has made a more significant gain is obliged to compensate the other spouse. Such equalisation claims must be met immediately and in full after the divorce has become final. For the spouse running the business, this may mean that the company or parts of it must be liquidated to meet the claims of the divorced spouse.

A prenuptial agreement – legally regulated in Section 1408 of the German Civil Code – can help to avoid potential conflicts and protracted legal disputes in the event of divorce. By setting out the financial arrangements in advance, clear rules are created for the division of assets. This can significantly reduce the stress and emotional strain associated with divorce and focus on finding a reasonable solution. Individually adapted solutions can be agreed upon in a prenuptial agreement. The following options can be considered:

• The community of accrued gains can be modified so that, for example, the business assets and all associated values are excluded from the accrued gains. The partner’s claim to accrued gains is limited to private assets.
• Deferral agreements or instalment payments can be agreed upon so that equalisation awards are not due immediately and in full.
• The parties may agree on a different, lower percentage for the division of the gain than the statutory 50%.
• A lump sum can be fixed as a compensation payment.
• It is also possible to agree to transfer a particular material value: e.g. the co-ownership share in the joint marital home.
• Maintenance claims can be negotiated in advance and detail.
• The parties can also agree on the separation of property. In this case, the equalisation of gains is completely excluded.

As shown, there are endless possibilities for structuring the asset situation during a divorce. Our lawyers will work with you to find the best solution for your circumstances, regardless of whether a marriage is imminent or you are already married and want to update an existing prenuptial agreement or draw one up for the first time.

It is also possible to agree a prenuptial agreement retrospectively for a marriage that has already been concluded, regardless of how long the marriage has already existed. This is not uncommon, particularly in cases where a spouse starts a new business. In such cases, as already described, the legal rule of a community of accrued gains can significantly jeopardise the existence of a company in the event of a divorce. This interest is also essential for any business partners and investors of the spouse running the company.

We offer regular reviews and adjustments to existing marriage contracts to ensure that the contract continues to meet your current needs and legal requirements. This means you will always be well protected, even if your personal or business circumstances change.

Drawing up a customised prenuptial agreement for entrepreneurs requires sound legal knowledge of German company and family law and consideration of each couple’s individual circumstances. A prenuptial agreement ensures orderly property relations between the spouses and the continued existence of any business involved. As an experienced German law firm, we support entrepreneurs and the self-employed and offer comprehensive legal assistance in drawing up a customised prenuptial agreement that considers both parties’ interests equally.

Rely on the experience and expertise of our German family law practice group to create a prenuptial agreement that meets your individual requirements. Contact us now for a discreet consultation.