David Centeno, Esq. | NYC Prenup Lawyer for High-Net-Worth Individuals | Smart Divorce™ Solutions Without the Drama.
When high-earning professionals get married, they often plan for everything—except divorce. Despite having trusts, operating agreements, insurance strategies and estate plans in place, many business owners, executives and investors overlook the single document that could help protect everything they’ve built: a prenuptial or postnuptial agreement.
As a divorce attorney, I’ve seen firsthand that this can be a costly oversight—sometimes to the tune of millions. But it’s one that can be prevented if done early and done right.
Not Just For Ultra-Wealthy Leaders
Prenups and postnups aren’t only about protecting inherited wealth or hedge fund bonuses. While they’re important for anyone, they’re especially critical for anyone with asymmetrical financial circumstances—startup equity, carried interest, intellectual property, real estate, digital asset holdings or projected income growth.
If your business is on an upward trajectory, you need to plan for the value you’re going to create. Otherwise, you could be forced to divide assets you haven’t even earned yet. Think of a marital agreement as a form of legal insurance; it’s designed to minimize damage in the worst-case scenario.
For example, several years ago, a startup founder came to my firm just before his wedding. His company was pre-revenue but gaining traction. He wanted to protect his equity, not out of mistrust but out of foresight. We crafted a prenuptial agreement that addressed future appreciation, protected his IP and included clear terms around spousal support and business valuation. It wasn’t adversarial; it was collaborative, thoughtful and fair.
Fast forward five years. The company had scaled. A divorce followed.
Because of the prenup, there was no court battle, no valuation dispute and no risk to the cap table. The founder kept control of his company, protected investor confidence and was able to finalize the divorce quietly and respectfully without litigation, exposure or financial damage.
The Importance Of Acting Early
If you’re not yet married, a prenuptial agreement is the smarter, more strategic option. Once you’re married, you lose leverage. You’re already married, so, ironically, your only leverage might be threatening to file for divorce. Furthermore, in my experience, courts tend to scrutinize postnuptial agreements more closely than prenups, especially if signed under strained circumstances or without full financial disclosure.
That said, if you’re already married and don’t have a prenup, a postnup is better than nothing. But waiting too long, especially until divorce is imminent, could render it an impossibility. We regularly get calls from high-net-worth individuals asking for a postnup—only to admit their marriage is already rocketing toward divorce. At that point, it may be too late to create an enforceable agreement.
Advice For Leaders And Investors
1. Don’t bargain shop.
Too many professionals treat prenups and postnups like boilerplate paperwork or try to cut corners by using online templates or underqualified attorneys.
Marital agreements require more than basic legal knowledge. Especially for business owners and executives, they demand a sophisticated understanding of not only domestic relations law but also asset protection, business structure, potential tax implications and enforceability under constantly evolving case law.
You’re not just drafting a document. You’re designing a legal firewall around your wealth, reputation and peace of mind. If you get it wrong, there’s no “do-over” when the stakes are high.
2. Remember that the best time to act is now.
I’ve found that the most enforceable—and least emotionally fraught—agreements are created when the relationship is strong and communication is open. Don’t wait until you’re already fighting about money. A well-crafted prenup or postnup can bring clarity, set expectations and may even reduce conflict when handled with care and fairness.
3. Pitch it to your partner thoughtfully.
Bringing up a marital agreement doesn’t have to feel adversarial. In fact, the best way to introduce it is by focusing on shared benefits:
• Clarity: “I want us both to have complete transparency and a shared understanding of how we’d handle things in the future.”
• Avoiding litigation: “This protects us both from having to fight it out in court if things ever go wrong.”
• Financial alignment: “We’re already planning our life together. This is part of building a solid foundation.”
• Mutual protection: “This isn’t just to protect me. It ensures you’re taken care of too and that we’ve both agreed to terms we find fair.”
Tone matters. Use language of partnership, not protectionism. When handled with empathy and logic, many partners understand the wisdom behind formalizing expectations before emotions take over.
4. Seek strategic counsel.
There is no one-size-fits-all approach to marital agreements. Each case requires a tailored strategy—from how assets are categorized and valued; to whether spousal support should be waived; to how trusts, investments or carried interest are handled.
This is especially true for professionals, entrepreneurs and investors with layered financial structures. Your attorney shouldn’t just draft; they must strategize. To ensure you’re choosing the right attorney, ask whether they have experience structuring marital agreements involving business interests, complex compensation packages or nontraditional assets. It’s also important to ask how they approach enforceability in light of evolving state laws and whether they’ve worked with clients whose financial picture resembles yours.
5. Consider a few business-specific factors.
Leaders and business owners should also be prepared to discuss key aspects of their business with counsel when creating a prenup or postnup. This includes ownership structure, projected growth, vesting schedules, shareholder obligations and any potential acquisition or liquidity events.
These factors can dramatically impact how a business is valued or divided in the absence of an agreement—and should be thoughtfully addressed upfront to avoid disputes that could jeopardize control, investor confidence or long-term strategic plans.
Bottom Line
If you’re entering a marriage, or you’re already married and want to protect what you’ve built, don’t wait. The earlier you put the right agreement in place, the more control you retain over your future. Because once divorce is on the table, your options can narrow quickly.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
