A divorce within a business can be particularly damaging and signing a prenuptial agreement is a crucial way to ensure the business remains secure in the event of a split.
While the impact of a divorce on a family is devastating enough, it can be potentially crippling to a business.
According to Margaret Simpson, head of family law at Dickinson Dees, once a couple has decided to divorce, they will usually decide to quit the business.
This can lead to a battle over the value of the business, making the need for a prenuptial agreement especially important.
"I have a case at the moment where one values their business at £2.8 million and the other at £400,000," she told nebusiness.co.uk.
To work against this situation, she advised couples to set up an agreement before a marriage is started.
It could include a shareholder agreement as well as a provision on how to value shares that might not have a value on the open market.
Published on: July 11, 2008