Divorce fears lead to rise of postnuptials

Jun 01 2007 by Brian Amble Print This Article

Prenuptial agreements have long since ceased to be the preserve of Hollywood stars and plutocrats. But now, reports the Financial Times, postnuptial agreements are becoming more commonplace among hedge fund managers and other executives keen to safeguard their fortunes in the event of a messy divorce.

"Postnups", as the agreements are known, are similar to prenuptial agreements on how to divide marital assets, except they are signed after marriage, not before.

At least one US hedge fund is refusing to take on new partners until they sign a postnup barring their spouses from making any claims on the fund, says Ken Burrows, a New York attorney who has written all the fund's agreements.

However mindful of the £48-million divorce settlement upheld in the British courts this week for the former wife of an insurance tycoon, this is surely a trend that will quickly catch on the UK , too Ė and not just for hedge fund execs.