The recent landmark case of Radmacher v Granatino giving effect to prenuptial agreements in divorce cases gives pause for thought. People say its “un-romantic”, “only worth it if you have £millions”. Really what is so wrong with sitting down before going into a relationship where assets are going to be bought, liabilities taken on and a relationship to be developed – and not thinking through both the practical issues and also any exit strategy. It is certainly what I advise my commercial clients to do when they are thinking of going into business with each other. Whether it’s a shareholders, investment or partnership agreement. I think the principles are the same. Especially where both parties have unequal bargaining positions or assets in their own name which they want to ring-fence.
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