According to today’s Money cover story in USA Today, prenuptial agreements (or “prenups”) may be unromantic, but they may well make sense.

Buy-sell agreements definitely make sense when companies have two or more owners, and virtually all substantial corporations have such agreements.

Prenups are the result of conversations between couples regarding what happens to whose assets and income in the event that the couple divorces.  They are increasingly being used when couples marry, particularly for the second (or third) time.

“More and more, these agreements are being drafted.  It’s not just for the rich and famous any longer.  It’s for people that have assets and/or income that they want to protect,” said Marlene Eskind Moses, President of American Academy of Matrimonial Lawyers.

Buy-sell agreements are supposed to be the result of conversations among owners of businesses addressing what will happen when lots of “trigger events,” including divorce, occur.  The objectives of such agreements are to protect the interests of the company and the individual shareholders, consistent with mutual fairness.  Sometimes, however, the owners may not talk — or pay attention when others are talking — about important provisions.

I read a buy-sell agreement recently that addressed the divorce of owners.  It provided that, in the event that an owner was divorced, the company had the right to repurchase 100% of his shares.  Period.  That’s it.

Normally, divorce provisions in buy-sell agreements are there to prevent shares owned by a divorcing spouse from being split by divorce courts and awarded to non-owner-employee spouses.  Suppose that an owner of this company had a prenup agreement that protected his ownership interest from division in divorce.  Wouldn’t he be surprised when his fellow owners enforced the agreement and purchased his shares?  Suppose he did not have a prenup, and arranged things in the divorce to protect his interest in the company?  He’d still be surprised if the agreement was enforced.

I’m not saying this will happen, but it could.

What does your buy-sell agreement provide in the event that you or one of your fellow shareholders is divorced?  How would the provisions apply if another owner got divorced?  How about you?  Are any prenup agreements coordinated with the operation of the buy-sell agreement?  These are good questions to consider.

Let me suggest that you pass this post along to anyone you know that could be affected by the issues raised here.