Should my credit partner be against marriage?

Question

I'm in the process of working with a credit partner that will go in on deals with me as we refinance properties into a portfolio loan. My question is, is it bad if this person could potentially get married in the future or would a prenup protect any property that is accquired during the marriage that's a part of the partnership?

The reason why I ask is because someone who I look up to has recently went bankrupt after a their partner went through a divorce.

Aaron Mazzrillo · Answer

Your partner should be against divorce, not marriage because it isn't the marriage that will cause you problems.

The morals of today's youth....

Jon Holdman · Answer

Your worries when you have a partner are far bigger than just marriage and divorce.  What if this person dies?  Gets sued and loses?  Moves away?  Suddenly needs money?  Goes on a spending spree and wrecks his or her credit?  Decides he doesn't like how you do business?  This is all stuff you should spend some time talking through and write down in your partnership's operating agreement.

Mike Nelson · Answer

@Aaron Mazzrillo I completely agree with you but at the end of the day this is what my generation is faced with.

@Michaela Graham That's good advice :-)

Mary B. · Answer

lol, this is quite the topic but a valid one I sappose. I'd have to agree with Aaron on this. You can't think anti-union otherwise you wouldn't have a partner for business.

Instead of thinking negatively looking at divorce before the nuptials are even exchanged, think in terms of your credit partner's income now doubling as a result of a holy union. She might have better credit than him or may even come from big money.

Kudos,

Mary

Jerry W. · Answer

Sounds like you and him need to talk.  Make sure you are on the same page.

Michaela G. · Answer

And think how much you'd be helping the future partner, if you had it in the agreement that he'd have to get a prenup, if he decided to get married.

I've heard of many women being completely against prenuptian agreements, because it symbolized that he is not in it for the long haul etc.

Well, you give him the perfect excuse :"Honey, I would never ask you to sign this, but it's a requirement my partner has and you do want me to stay in business and have a good income, don't you?"

What can she say to this?

And you've helped him with a really hot potato ;-)

Steven Hamilton II · Answer

That is the same comparison I use with my clients.  I just recently acquired a new client who did not have a partnership agreement.  They are working on it now.  When one partner wants out it becomes a HUGE mess.

Adam Johnson · Answer

As much as I am not a huge fan of attorneys (and I use them a lot), I think this would be the perfect time to visit yours.  As suggested by @Jon Holdman , you need to have a solid and specific operating agreement drawn up while everybody is friends.  In essence, YOU need a prenup of sorts in which you and your partner agree on a number of things ahead of time while everybody is friends.  This is a 2-way negotiation, you may need to be prepared for certain aspects of the operating agreement that may protect your partner.

To make a comparison - you are now engaged to be "married" to your business partner.  Now is the time for the 2 of you to work out your own prenup (operating agreement).

Should my credit partner be against marriage?

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