Businesses urging key executives to sign pre-nups

There's a growing trend for businesses to ask key executives to sign pre-nups before marrying, according to Nottingham lawyers.

The aim is to protect the company against the disruption that could be caused if equity partners or directors are forced to sell their shares to fund a future divorce settlement.

Sarah Perkins, of Andersons Solicitors in Nottingham, said the move made prefect business sense even though it may appear as an intrusion into a person's personal affairs.

"Firms 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.

"That's why many firms are putting gentle pressure on equity partners to sign a pre-nup to ensure a financial settlement that doesn't lead to panic measures involving the business.

"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 business."

The increased interest in pre-nups follows a landmark ruling in the Supreme Court in October involving Katrin Radmacher, who is the heiress to a multi-million pound family business. The court upheld a pre-nup agreement which limited the amount of money she had to give her former husband.

The ruling established that pre-nups are enforceable in the UK as long as they are properly drawn up and fair to both sides.

For more information call Sarah Perkins on 0115 947 0641.