I am an entrepreneur and I am married under a prenuptial agreement because we want to minimise the business risks as much as possible. We are therefore supposed to reconcile our incomes annually, but we have never actually done so. What are the risks involved?
You run the risk that, in the event of a divorce, you will have to divide your assets as if you were married under the community of property regime. You can prevent this by drawing up the settlement (or having it drawn up) and signing it together with your spouse.
How does this work exactly? Most prenuptial agreements include a provision stipulating that income must be settled periodically. If the spouses do not settle their accounts, the assets are deemed to have been accumulated from income that should have been settled. In effect, this means that the assets must be divided as if the marriage were a community of property.
Note! Divorce ranks high on the lists of the top 10 most stressful events. According to figures from Statistics Netherlands (CBS), the divorce rate stands at 38 per cent. You should therefore ensure that your affairs are properly organised, even if everything seems to be going smoothly.
Tip: Avoid disputes. Have your accountant draw up the periodic settlement on a regular basis and sign it. In doing so, you and your partner are implementing the periodic settlement.