It’s a situation Naz Barouti has seen far too often: Well-intended, educated, successful women’s personal and business lives affected by death or divorce. As an entrepreneur herself, Naz has built a successful law firm, watched the financial inward and outward flow of her business, and knows the struggle women face in building their empires. Years of knowing what can happen when details are not pre-established have provided Naz with a new mission: arming likeminded women with the tools they need to protect themselves, their estates, and their own entrepreneurial endeavors. Home Business Magazine caught up with Naz to talk with her about women in business, entrepreneurial advice and inspiration, and about her new book Love, Death and Money: A Woman’s Guide to Legally Protecting Herself.
Q: What inspired you to write your new book?
A: I was inspired to write this book because I saw countless women discouraged in protecting themselves financially, either because they didn’t understand the law or didn’t have thousands of dollars to hire an attorney. I wanted to write an easy to understand guide on how you can protect yourself no matter what stage in life you are in. The key for me in writing this book was I wanted to share with the reader cautionary tales of women who didn’t plan ahead. I believe that legal advice resonates well when you share real life stories. It is so important for me that every woman who reads this book walks away feeling empowered and confident in their personal and professional relationships.
Q: What are some of the most prevalent reasons you have run across for not getting a will or trust?
A: There is this saying that there are two things that are certain in life: death and taxes. Unfortunately, no one wants to talk about either one. I find that many people have this mentality that they are invincible; however, accidents and illnesses don’t discriminate against, age, race or gender. Also, many are unaware that getting a will or trust is necessary. I’m always shocked to find how many clients believe that their family members can access their assets after their death without any trouble.
Q: What tips can you provide for initiating the uncomfortable conversation of establishing terms, especially business ownership terms, in a prenuptial agreement?
A: Unfortunately, there is a negative connotation attached to prenuptial agreements, but in my opinion these agreements preserve the romance. Which scenario do you prefer? Discussing how your assets will be divided when you’re in love? Or dividing assets when emotions are high and you filed for divorce? Many believe that prenuptial agreements only protect one party, but it is a legal document that, if drafted properly, can protect both parties involved. The best way to bring up the conversation is to emphasize to your partner that you want to protect them and yourself from the often times ugly process of divorce. Tell your partner that you prefer you both keep your money rather than pay a divorce attorney thousands of dollars to help you decided who keeps what.
Q: A woman has a will, trust, and prenuptial agreement, and starts a business four years after those documents are established. Can they offer protections to her if it is not amended to include specifics about the new business?
A: The beauty of these documents is that they can always be changed and amended. In the prenuptial agreement, a clause can be included that any business started after the marriage by only one spouse will remain that spouse’s during a divorce. Once the woman starts her business, the interest in the business can be assigned to her trust. At that time, she can add specific beneficiaries who will receive the business interest if she were to pass.
Q: Are there any business related topics that cannot be discussed in estate planning? In prenups?
A: Typically, the operation of a business is discussed in the Operating Agreement or By Laws of the business. However, the prenuptial agreement can dictate how that business interest will be divided during a divorce. The only topic prenuptial agreements cannot discuss is child custody and support. That is an issue that will be left for the Family Courts to decide.
Q: What advice would you give a female entrepreneur starting her own business?
A: Before starting any business, consult with an experienced attorney. You don’t realize how important it is to have a trusted attorney in your corner until things go south. An attorney can advise you on what kind of business entity to establish to protect you from personal liability, reduce taxes, and how to protect the business if you pass away. Additionally, if you are planning on establishing a business with partners, the first discussion should be how the business will be divided if dissolved. In any partnership, whether for business or romance, I always encourage my clients to think about the end of the partnership first. Difficult conversations are easier to have in the beginning of partnerships rather than at the end.
Q: How do you inspire the people who work with you?
A: In any relationship, authenticity is so important. With me what you see is what you get. I’m unfiltered and unapologetic for what I want and need. As a result, many people gravitate towards me and are inspired by the work that I do. Once I started this journey of building my empire, I realized that I had become a motivational force for many people, which forced me to work ten times harder. True success to me is becoming a servant in helping others reach their goals.
For more information on Naz and her law firm, please visit: nazbarouti.com and baroutilaw.com. And follow her on Instagram @NazBarouti.
