Prenup Ring Fences Family Business Case Study
A Prenup Case Study – Client Situation
Our client, Miss J was in a same sex relationship. She needed legal advice about a Prenup Agreement before getting married to her partner. Miss J came from a wealthy family and would inherit the family business when her parents died.
Her partner was not from a similar wealthy background and did not bring any capital to their marriage. Miss J wanted help and advice on how she could ring fence her family’s business as the family wealth had been built up over two generations.
Miss J got in touch with our Divorce Solicitors six months before her wedding to her partner.
How We Helped
Miss J spoke with Partner and Divorce Solicitor Jane Auty, about how she could achieve the protection of her family’s business.
Jane took all the details about the value of the business, details of the relationship and information about her partner’s financial circumstances.
Once she had all the key information, Jane advised Miss J that there needed to be a clear distinction between all the assets she had before their marriage and those they both built up over the course of their marriage. This would mean that Miss J and her future wife would be clear about how their assets would be dealt with if the ever got divorced. It would allow Miss J to ring fence her family business as this would be an asset she has before they married.
It was important for Miss J’s future wife to also feel financially secure so a provision was included for the sharing of any future property that was built up by the couple.
Jane advised Miss J’s partner to get specialist legal advice from a Divorce Solicitor so she understood what the Prenup meant to her if they did ever end their relationship.
Once Miss J’s partner had got legal advice, both Divorce Solicitors exchanged financial information. This made sure that both Miss J and her partner were fully aware of all of the assets involved and that they were in agreement of what came before their marriage. They both confirmed this with their respective Solicitors, who then drafted the Prenup.
Both Miss J and her future wife understood that Prenups are still not legally binding in England and Wales. But, after recent high profile cases in the Divorce Courts, Prenups are increasingly being taken into account during the Divorce Process. In spite of this, they both felt it was an important thing to do.
The finished Prenup included a clause so that Miss J and her future wife could review the contents if their position changed in the future. This meant that they could make changes to their Prenup if they both chose to.
Both Miss J and her future wife had a clear understanding of what they had agreed in their Prenup and why they’d made that agreement.
They both knew that if their relationship ever broke down, there was a clear agreement of how their finances would be divided.
Miss J and her partner felt that any potential fallout from a Divorce was minimised because of their Prenup.
Both parties clearly understood that prenups are still not legally binding in England and Wales but following recent high profile cases, increasingly such agreements are being taken into account when the assets are divided.
For initial legal advice call our Family Law and Divorce Solicitors
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