All Forum Posts by: Scott Webber

As a follow-up to my own post, this is the verbiage I'd developed, which others can comment on:

The increase in value of Separate Property, regardless of whether such increase or decrease is due in whole or in part to the direct or indirect contributions of either party and whether such increase is passive or active.

Notwithstanding the foregoing, if the value of Scott’s interest in any of the LLC interests listed on Exhibit B increases as a result of his active efforts, the appreciation of such assets shall be deemed Marital Property

a) Active shall be defined as exclusively engaging in gainful self-employment working toward the growth of his LLC interests listed on Exhibit B, successor LLC's, spinoff LLC's, or any other LLC or gainful acquisition made using premarital funds, mortgages, or other financial instruments to fund growth. Scott shall not be considered active under the following circumstances: unemployed while seeking gainful employment, on disability from full time employment, retired from government employment, or other circumstances out of control and atypical to choosing to pursue his housing business endeavors as his sole source of primary income.

• 1.Should Scott choose to “actively” engage in housing as his source of employment as defined above, Scott agrees to give 25% (twenty five percent) of his net profits accrued from his active efforts during the period of marriage to wife in the case of a divorce.
• 2.Payment of such percentage of funds shall be payable over 120 equal monthly payments, or equivalent to no greater than 10% of Scott’s New York State Adjusted Gross Income, verified annually with payments adjusted the 1st of November each year, whichever is less, to ensure no undue hardship to Scott or the business will be endured. Payments shall be due the first of each month via EFT, or otherwise agreed upon delivery.

b) Passive shall be defined as the status quo of Scott maintaining a full time employment position in government or any other W2 employment based position, temporarily unemployed, disabled, or retirement for purposes of defining his level of effort toward his business endeavors.

• 1.Should Scott choose to “actively” engage in housing as his source of employment as defined above, Scott agrees to give 5% (five percent) of his net profits accrued from his active efforts during the period of marriage to wife in the case of a divorce.
• 2.Payment of such percentage of funds shall be payable over 120 equal monthly payments, or equivalent to no greater than 10% of Scott’s New York State Adjusted Gross Income, verified annually with payments adjusted the 1st of November each year, whichever is less, to ensure no undue hardship to Scott or the business will be endured. Payments shall be due the first of each month via EFT, or otherwise agreed upon delivery.

I'm in the process of drafting a prenup; I currently have two LLC's, with a total of five houses combined valued at roughly $900K, half of which is mine, half belonging to my business partner; I also have two rental properties held in my name. Can anyone provide model language they may have used in a prenup for themselves to best protect their business assets, both currently and going forward. My future father in law is most interested in ensuring his daughter's interests were I to do this as a business full time, and leave my day job, asking for 30% of the appreciation of the value of the business or 5% of the appreciation of the value of the business if I continue to be an investor in the business as a "secondary" job. Any insights are appreciated as I formulate language. I've hired a very high end attorney (someone who worked for a celebrity type firm), so I'm seeking advice from the forum above and beyond and in tandem with professional advice, who's a real estate pro who got burnt and knows from experience, or went through a similar prenup already. And don't tell me not to get married, even if that's the best advice of all :-) Thank you!