Pre-nuptial Agreement – Protecting the Family Business

If you run a family business it may be particularly important for you to consider entering into a pre-nuptial agreement.  The financial consequences of a breakdown of a marriage can be significant and any financial settlement to be paid by the owner of a business to their former spouse can impact on the future viability of a business which may have to finance any capital sum payment due to the other party on divorce.  A pre-nuptial agreement can provide protection to the business as well as the individual owners of that business.

Whether you are a sole trader, a partnership or own shares in a family limited company a pre-nuptial agreement can protect your assets and investment.  Any assets acquired prior to marriage are treated as non-matrimonial property in Scots Law.  However, there may well be a re-structuring of your business in the future after marriage for example you may form a limited company rather than continuing as a sole trader or form a limited liability partnership.  If you do so a business which was previously a non-matrimonial asset would become matrimonial property by virtue of re-structuring after marriage.  It is important if this situation is recognised and provided for then a pre-nuptial agreement between parties. 

Our highly experienced team of family lawyers can tailor agreements to your individual business circumstances ensuring that such agreements are fair and reasonable and protect your business.