Protect your business with a pre-nup.

Entrepreneurs are typically driven, ambitious people who have plans in place to protect their business against the risks associated with bad luck, competition or the economy. But how many plan to minimise the emotional and financial costs of divorce upon their business?

Contributions of homemaking and growing a business are considered of equal importance in the eyes of the family court; as such, on divorce a division of the business will be considered even if this is down to premarital efforts by one party.

Courts are increasingly willing to uphold pre-nuptial agreements provided they are fair, entered into without duress, both parties had legal advice and there has been financial disclosure. Pre-nups are becoming more common place to set out the parties’ respective intentions should a divorce occur in the future.

A pre-nup provides protection for a business by:

  • Establishing a premarital value of the business. While value gained during the marriage may be subject to division, the owner can seek to ring-fence premarital business value.
  • Confirming if a spouse will share in the business profits and losses and if so, to what extent. This could prevent a company from being subject to the same distribution guidelines as other marital assets.
  • Agreeing how the business will be valued at the time of divorce. This may minimise the expense, disruption and intrusion of third-party valuations.

If you would like to learn more about how a pre-nup can protect your business, please speak to family lawyer Elizabeth Dowler today on 01225 750 000 or email We are here to help.

Mogers Drewett

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