When someone marries into a family that owns a business, there’s often an opportunity for that person to contribute to the family enterprise – and just as often, there’s not.

Regardless of whether in-laws are fully integrated into the family venture, kept on the periphery, or remain completely out of the business loop, it’s crucial to create legal agreements at the very outset to protect the future of what is often the family's most valuable asset.

Why get a lawyer? Consider these risks.

• In-laws can be trouble on two feet. They can create conflict if they're dissatisfied with their working conditions or pay. They may become defensive if they think their spouse or other relatives are being treated unfairly. And in-laws who want in the family business but are kept out can create a maelstrom of distrust and friction. 
  
  
• No matter how perfect the match, the longevity of the modern-day matrimonial union is never guaranteed. According to a national study, nearly one in four participants in family businesses will go through a divorce in the next five years. In fact, adults in general are now likely to have more spouses than children.
  
  
• As emotionally upsetting as divorce may be, it can also threaten the foundation of a family business. A bitter ex might act as a contentious naysayer to business growth – or know enough about the company’s proprietary information to cause serious damage.

These kinds of risks should give pause to family business owners faced with potential new in-laws, especially when hiring them is a possibility. Getting upfront legal advice is crucial to minimizing the loss should marital relationships end.

Generally, there are two legal tools designed to protect a family business.

1. The prenup option. Before marriage, a prenuptial agreement that outlines protected areas of a family business makes clear that the boundaries of love and affection stay separate from profit and loss. The prenuptial agreement outlines how the marital assets are divided if there’s ever a divorce. To make the agreement enforceable, terms should be fair and each spouse should be entitled to an attorney and full disclosure. 
   
   
2. The buyback option. Apart from a prenuptial agreement, it’s smart to have a shareholder’s buy-sell agreement. The agreement gives the family-owned company or other stockholders the option to buy back family business stock if it is ever transferred as part of a divorce decree.

In time, the new in-law may prove to be both a wonderful family addition and business partner. Yet family business owners are wise to weigh the risk of that reward before making him or her part of the family.