Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 2 weeks ago 84
Money and blood often don’t mix – which is why so many families go to war over their ‘fair share’ of cash.
With so many wealthy business people and celebrities drawing up marriage pre-nups, perhaps the time has come for property business partners to consider the same deal.
Most property partnerships start on good terms and work towards a common goal of generating profits and cash – but some turn sour and the partners regret they have no exit strategy.
A loose, verbal agreement really does not go far enough for a property business that can soon chalk up an asset base of £1 million or more.
Many business partners may happily work together without disagreement for years, but if they do not plan for the death of a partner, divorce or other unforeseen circumstances like serious illness, then dividing the spoils can trigger serious arguments.
Misunderstanding and distrust in a property business can soon arise because two or more partners think they have an agreement, but their interpretations of the actual terms and conditions are often very different.
A good business pre-nup will go along way to avoiding family feuds.
Some of the points to consider when drawing up an agreement
It’s important to remember that jointly owning property does not mean the business is a partnership in the same way as lawyers work in a practise, so the arrangement is more of a joint venture than a formal enterprise governed by the Partnership Act.
If in doubt about how to write a property business pre-nup, consider calling in a lawyer.
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