Executives signing pre-nups to protect their business

0
81

More businesses are urging their senior executives to sign pre-nup agreements before getting married, according to family lawyers.

They hope it will ease disruption to their business if the marriage ends in divorce because the executives will be less likely to have to sell their shares to fund a divorce settlement.

While it may seem cold and unromantic, it makes a lot of sense for businesses to protect themselves in such a way.

Companies don’t want to find that a director suddenly has to sell their interest in the business because it could be very damaging and destabilising – especially in difficult trading conditions like those we’re experiencing now.

Some company owners are also asking their children to draw up pre-nups. This is seen as a way of protecting family interests many years down the line after the children have inherited the business.

The increased interest in pre-nups follows the recent landmark ruling in the Supreme Court involving Katrin Radmacher, who is the heiress to a multi-million pound family business.

She had a pre-nup which limited the amount of money she would have to pay her husband in a divorce. It was upheld by the court.

Media Coverage - content marketing services for your law firm

The ruling states that as long as a pre-nup is fair to both parties and is properly drawn up, it will be enforceable by UK law.