Protecting Your Business and Personal Interests: The Vital Role of Prenuptial Agreements and LLC Operating Agreements

signing agreement

As a high-income professional or business owner, you've worked diligently to build your wealth and secure your future. In the complex world of finance and law, two particular types of agreements can offer considerable protection for your assets: prenuptial (and postnuptial) agreements and LLC Operating Agreements. We'll delve into what these agreements entail, how they can safeguard your interests, and illuminate these concepts with a real-life case that intersects both.

Prenuptial and Postnuptial Agreements: Shielding Your Assets

Prenuptial and postnuptial agreements serve to predetermine financial rights and responsibilities if a marriage ends, be it through divorce, separation, or death. These agreements can help protect separate property, define spousal support terms, and clarify the division of assets and debts. For more detailed information, refer to our blog post, Understanding Prenuptial and Postnuptial Agreements in New York State: Protecting Your Business, Income, and Assets.

LLC Operating Agreements: Safeguarding Your Business Interests

An LLC Operating Agreement outlines the structure, governance, management, and operational rules of a limited liability company. It also establishes procedures for decision-making, profit distribution, and rules for handling membership interests, including future rights of a member's spouse upon death or divorce. For more detailed information, refer to our blog post, Navigating LLC Operating Agreements in New York State: Protecting Your Business and Personal Interests.

Case Study: Bich v. Bich and the Grenelle Case

A real-world example that illustrates the interaction between these two types of agreements is the case of Bich v. Bich and the Grenelle LLC. In this case, a couple had a prenuptial agreement governed by New York law, stipulating that any income derived from separate property, including business income, would remain separate property. The husband was a member of an LLC registered in Delaware, and according to the LLC's Operating Agreement, a member's spouse would have no right to any portion of the member's interest in the LLC or its assets or earnings, except to the extent explicitly provided in a "spousal consent" document.

When the couple divorced, a conflict arose between the prenuptial agreement and the LLC Operating Agreement. The wife claimed she was entitled to a share of the husband's LLC income under the prenuptial agreement. However, the husband argued that the LLC Operating Agreement, governed by Delaware law, preempted the prenuptial agreement, barring the wife's claim.

The court ultimately upheld the prenuptial agreement, ruling that the Delaware LLC law didn't override the provisions of the New York prenuptial agreement. The court noted that the purpose of the LLC law was to limit a member's spouse's rights in the absence of an agreement to the contrary. In this case, the prenuptial agreement constituted such an agreement.

This case illustrates the importance of ensuring that prenuptial agreements and LLC Operating Agreements align and are drafted to reflect the parties' intentions. It also underscores the need for expert legal counsel in drafting these agreements and resolving disputes that may arise.

What Business Owners Should Consider

For business owners and high-income professionals, protecting business interests, income, and large assets is a top priority. It is important to have both a prenuptial/postnuptial agreement and an LLC Operating Agreement that are comprehensive, enforceable, and tailored to your unique circumstances. These agreements should clearly define separate property, establish rules for income and spousal support, and address the treatment of business equity and income in the event of a divorce.

Furthermore, ensure your LLC Operating Agreement provides clarity on management, control, profit distribution, and the rights of a member's spouse upon death or divorce. Seek expert legal advice to ensure these agreements align with your intentions and provide the protection you need.


Whether you're planning to marry, already married, or running a business, prenuptial and postnuptial agreements and LLC Operating Agreements are essential tools for protecting your income, business interests, and assets. Our experienced attorneys can advise as to LLC Operating Agreements and help you draft comprehensive and enforceable prenuptial and postnuptial agreements tailored to your unique circumstances. Contact our law firm today to schedule a consultation and secure your financial future.

If you are facing similar concerns or if you have questions about the role of Prenuptial Agreements and LLC Operating Agreements, please feel free to contact us here. We have many years of experience handling such matters and will be able to assist you in resolving the dispute.

To learn more about these topics, you may want to review our information provided on these pages: Matrimonial Law, Prenuptial and Postnuptial Agreements, Business Litigation, Business Divorce and Dissolution, LLC Disputes.

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