FT Wealth quotes Sarah Anticoni and Vanessa Duff on prenups to protect family wealth
A rising number of wealthy entrepreneurs and individuals with substantial family legacies are seeking to protect their assets before they get married. This is known as a prenuptial agreement (often referred to as a prenup).
A pre-nup is a contract entered into between two parties before they marry. It records the ownership of assets and details what will happen to these assets should the marriage break down and end in divorce.
Vanessa highlights that when entering into a pre-nup it is important to remember that different jurisdictions have different rules and that if throughout the course of your marriage you move to another country the pre-nup may not be valid.
Drafting something that works in Hong Kong, but then the happy couple move to the United States, may mean that the agreement doesn’t protect against financial outcomes where the divorce takes place.
Sarah adds that some couples may also consider a post nuptial agreement - a written agreement executed after a couple gets married to settle the couple's affairs and assets in the event of a separation or divorce.
Sarah warns that, while a postnup can provide reassurance regarding what the financial outcomes might be if the marriage was to flounder, the downside is, if a postnup cannot be agreed by negotiation, it might then lead to divorce.
Read the full piece in the Financial Times here.