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Richard, Attorney
Category: Business Law
Satisfied Customers: 53678
Experience:  32 years of experience practicing law and a businessman.
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I am 100 percent owner of a company. I hired my wife to work

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I am 100 percent owner of a company. I hired my wife to work for me about two years ago. I want to include a clause in her employment contract so she will continue to receive her income if I should predecease her. 1st - is it legal to have this type of clause? 2nd - how can it be worded so that it won't be challenged?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. Is your company a corporation or LLC? Thanks.
Customer: replied 3 years ago.

It is a C corp

Thanks so much for your reply. As long as you make the employment agreement between your company and your wife, your death will not terminate the employment agreement. Your company is a separate and distinct entity and does not terminate upon your death. Rather, only your ownership in the company may change; but, the contracts of the company are still valid and binding against the company itself. You can put some language in there that says prohibits assignment of the employment agreement by the company without the prior written consent of your wife. Otherwise, you need no specific language...the agreement will be legally enforceable against the company even were you to die.

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