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One instance where I see alot of people sign prenup is in the case where one person is a partner in a business, whether it be a lawyer, doctor, hedge fund, etc
by chollida1 10y ago
One instance where I see alot of people sign prenup is in the case where one person is a partner in a business, whether it be a lawyer, doctor, hedge fund, etc.
In these situations its usually the firm that wants the prenup.
The reason is very simple, in the event of the marriage ending they don't want to have the business be put into jeopardy by having an outsider own part of it or by having one of the partners have to sell their stake to fund the divorce proceedings.
It doesn't always firewall off the company from trouble when a divorce happens but it does help.
I've never heard of a spouse balking at the idea of a prenup in these situations. Most people are pretty level headed about this.
The only gotcha is that the spouse has to get something of value for signing the prenup, often the corporation itself will put up the money for this end of the deal.
The last two deals friends have signed have had a clause that the spouse gets the equivalent of the highest 3 years of pay in the event of a divorce where no one is at fault and the marriage lasts 5+ years. This is separate from what ever other assets the couple splits.
If you are a business owner this just makes way to much sense to not consider.
- dragonwriter 10y ago> One instance where I see alot of people sign prenup is in the case where one person is a partner in a business, whether it be a lawyer IIRC, its a violation of the ABA model rules for a non-lawyer hold a partnership in a law firm (or, more precisely, for a lawyer to be a partner in or work in such a firm, which amounts to the same thing.)
- pc86 10y agoThis is very common, especially with the fields you mention where the potential earnings are very high for partners.
- Balgair 10y agoAnd suddenly, the stereotypes of the high number of divorces of these people becomes crystal clear. I never though of this aspect to those high pressure lives, but now soooooo much makes sense. Thank you!