He had ambitions to take control of that company but had recently separated from his wife so he was concerned about what would happen to his share of the business if he was to divorce in the future.
Mr X had plans to invest and grow the company significantly. He felt it was only fair that if he was taking the risk of taking out bank loans to fund the purchase of the company, not to mention the time, hard work and expertise he would devoting to the company, that his wife’s interest in the business should be limited and that she should not benefit from any increase in company value.
We were instructed by Mr X to advise him on ways to protect his interest in the company before he proceeded with the share purchase.
We were able to assist Mr X in negotiating a settlement with his wife and prepare a post-nuptial agreement which protected his shareholdings in the company. This allowed Mr X to proceed with the share purchase in the knowledge that his interest in the company would be ring-fenced if divorce proceedings should occur in the future.
If Mr X had not entered into a post-nuptial agreement it would have left him open to a claim by his wife on his share of the business, valued at the time of the divorce, which could have resulted in lengthy and costly court proceedings.
What is a Post-Nuptial Agreement?
Post-nuptial agreements are for those who are already married. It is a formal contract between spouses setting out how they wish for financial assets to be accounted for in the event that they separate. They are often used when the couple want to identify specific assets or funds that they do not think should be considered as “matrimonial”.
When should I consider getting a Post-Nuptial Agreement?
There are many circumstances where a post-nuptial agreement could be a good idea. The following are examples:
You can find more information about post nuptial agreements here.
Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.