A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 70
breakdown of the marriage.
provision contained in a party’s Will
communication in the marriage.
While perhaps obvious, it should
This could prevent a situation
and clarify what should happen to
It is important to note that even if a
be
whereby an ex-spouse is awarded
certain assets.
PNA is not upheld fully by the English
with the division of assets on
Family Court on divorce, it can still
divorce
act as a ‘drag’ on the financially
cohabiting
weaker spouse’s claims thereby
might be given to Living Together
ensuring
or
an interest in a business and has to
(8) PARTIES CAN
AGREE THEIR OWN
participate in its running with family
members or business partners.
TERMS:
(6) MINIMISES
ACRIMONY ON
The parties may have a creative
DIVORCE:
divorce or, for example, one party
Clearly setting out in a nuptial
may not want to make a claim
agreement how assets are to be
against the other party’s pension.
divided on divorce should lead to
A nuptial agreement gives the
fewer arguments about finances
parties the freedom to agree their
on divorce and a more amicable
own terms without a solution being
relationship between the parties in
imposed on them by the Court.
plan for dividing their assets on
the future.
(9) SAVES MONEY:
(7) PROVISION ON
It is cheaper to negotiate and draft
DEATH:
a nuptial agreement than to embark
Whilst a nuptial agreement cannot
on contested financial remedy
restrict testamentary intention, it is
that
their
entitlement
is significantly discounted as a
that the financially stronger spouse
(10) IMPROVES
will ensure that their Will contains
COMMUNICATION:
financial provision for the financially
Discussing financial issues can be
weaker spouse upon his or her
one of the most difficult aspects of
death which is at least as generous
marriage. Dealing with this at the
as the terms of the nuptial
outset of a marriage can strengthen
agreement. This can support the
a relationship and support good
70
that
only.
PNAs
deal
Therefore,
partners,
Cohabitation
for
thought
Agreements.
These have the advantage that:-
consequence of having entered into
the PNA.
•
they legally regulate the
arrangement between the
cohabitees;
•
they can provide for more
certainty to avoid litigation on
IT’S ESTIMATED BY
THE INSTITUTE FOR
FA M I LY B U S I N E S S
RESEARCH FOUNDATION
T H A T FA M I LY- O W N E D
FIRMS ACCOUNTED
FOR 26% OF THE UK
GOVERNMENT’S TAX
RECEIPTS IN 2019,
SOME £205BN
relationship breakdown;
•
they protect assets,
confidentiality and provide a
mechanism for resolution of
disputes on separation; and
•
they commence the use of
legally regulating personal
proceedings at a later date.
common to set out in an agreement
highlighted
relationships via legal
documents at the outset of the
relationship - they are a useful
precursor to PNAs.
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