Why business owners should consider prenuptial agreements

Divorce has an impact on almost every area of your life and your business interests are rarely immune to that. When it comes to making a settlement with your spouse, you may be forced to give up as much as 50% of your wealth, and depending on the nature of your business this could include your business assets. However, increasingly pre-nuptial and post nuptial agreements are being recognised by the courts and taken into account when deciding upon financial settlements and could allow business owners to protect their companies from the impact of a divorce.

What is a prenuptial agreement?

A prenuptial agreement is a contract that is entered into by both you and your fiancé. Drawn up by a qualified and experienced solicitor, it lays out exactly what you would like to happen in the event that your marriage fails and you request a divorce.

How could it benefit me?

A pre-nuptial or post-nuptial agreement (drafted and agreed upon after marriage) could ring fence important business assets that you do not wish to play a role in any financial claims that are made by your spouse, should your marriage end.

How does it work?

If you want your pre-nuptial agreement to have the best chance of being upheld and taken into account then it needs to be drafted carefully. Some of the caveats include making sure that the document is signed at least three weeks before the wedding day and that there is a full and honest disclosure of finances by each spouse before anything is signed. Each party must have access to legal advice, and finally the agreement must be regularly revisited to allow for changes in each spouses financial situation, and in this case, that of their business.

If you are planning on getting married and would like to investigate all the possible avenues of protecting your business in the future then we can help. To arrange an initial consultation with a solicitor experienced in family law issues, please contact us or call us on 0207 7611 4848.