OLS Solicitors Blog

How to protect your business with a pre nuptial agreement

By Lara Davies on April 6, 2023

Vom Zaun getrennt. 2 braune Pferde treffen sich am Koppelzaun

Planning for a divorce is not something that couples enjoy thinking about when they are about to get married. However, it is important to be prepared for any outcome, especially if one or both partners own a business. Having a pre or postnuptial agreement can be an effective way to protect business assets in the event of a divorce. In this article, we will discuss the importance of pre and postnuptial agreements, reasons for considering a prenup, and how OLS Solicitors can provide expert legal advice to protect your assets and your business.

Importance of pre and postnuptial agreements:

A prenuptial agreement is a contract that couples sign before getting married that outlines the ownership of assets, including businesses. A postnuptial agreement, on the other hand, is a contract that couples sign after getting married. Both agreements should clearly state ownership and how assets will be divided, and can be taken into account by the court when deciding on financial settlements. Although pre and postnuptial agreements are not legally binding in British courts, they can strongly influence any court decisions, as long as the court is satisfied that both partners entered into the agreement willingly and fairly, with full disclosure of their finances and having received legal advice.

Reasons for considering a prenuptial agreement:

Agree on asset division in advance: By having a prenuptial agreement, couples can calmly agree in advance how assets will be shared in a divorce, rather than having to do so during the emotional time of a separation.
Retain control of your business: A prenuptial agreement can provide you with total control of your business after the divorce.
Protect against splitting up the business: For family farms, a prenuptial agreement can be essential in protecting inherited farming assets (including property, farmland, and machinery) or your interest in the farming business.
Safeguard inherited property or assets: A prenuptial agreement can “ring-fence” any inherited property or assets associated with the business, or which you wish to pass on as an inheritance in the future.
Protect against business-related debts: A prenuptial agreement can protect you or your spouse from any debts accrued by the business.
Aid in succession planning for the business: A prenuptial agreement can help with succession planning for the business.
Record business assets: A prenuptial agreement serves as a record of the business assets and who owns what.
Prevent business disruption during divorce: A prenuptial agreement can prevent any disruption to the business during the divorce.

How OLS Solicitors can help:

OLS Solicitors is a leading UK law firm with a team of experienced legal professionals who can provide expert legal advice on pre and postnuptial agreements. Their solicitors have extensive experience advising business owners and farming families, and they can help you protect your business interests and assets.

OLS Solicitors can help with

Drafting and reviewing pre and postnuptial agreements

Ensuring that both parties enter into the agreement willingly and fairly, with full disclosure of their finances and having received legal advice

Providing guidance and support to both parties on legal and procedural issues

Liaising with other departments within the company to ensure that legal services are provided effectively and efficiently

Keeping up-to-date with changes in divorce law and procedural rules

OLS Solicitors has a strong reputation and positive review ratings on Review Solicitors, which indicates that they provide high-quality legal services to their clients. They have expertise in all areas of family, commercial, and agricultural law, and they are committed to providing cost-effective legal solutions.

Conclusion:

A pre or postnuptial agreement is a vital tool for business owners and farming families to protect their assets and the business.

Take a look at our pre nuptial agreement service here

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Author

Lara Davies

Lara is our Head of Legal Practice and a director. She advises on complex financial remedy proceedings, private child disputes, and Inheritance Act cases. She also has a keen interest in protecting vulnerable clients, particularly those who have experienced forms of domestic violence in their relationships. Lara has often represented fathers in private child proceedings and has a unique understanding of the challenges faced by them. Lara is keen horsewoman, and has spent her life competing in national and regional level dressage competitions with success. She is also a keen runner, and has completed Marathons, Half-Marathons and mountain races – she is now building up to her first ultra-marathon. Lara loves being outside in the mountains; her favourite place is the Scottish Highlands where she can be found a few times a year with her other half and their Pug in their campervan. She is slowly making her way through climbing each of the Scottish Munros and high peaks of England and Wales. Lara is a Welsh speaker.