New York Times- Post-nuptial agreements, once a novelty, are becoming increasingly more popular- and in some cases mandatory- in the world of hedge funds. The Financial Times reports that the post-nuptial agreement, where the married parties sign on the dotted line after the wedding bells have rung, is soaring in popularity among newly wealthy hedge fund managers.
At least one hedge fund in the United States is refusing to take on new partners until they sign a “post-nup†barring their spouses from making any claims on the fund, Ken Burrows, a New York attorney who has written all the fund’s agreements, told The F.T. Mr. Burrows apparently declined to identify the firm because of confidentiality rules.
The report acknowledges that most hedge funds aren’t as extreme as that, but says that partners often encourage one another to sign them, to protect both the firm and themselves.
“The marital relationship has traditionally been the secret close bond. Now it’s the business partners, the hedge fund world, the drinking buddies – and the spouse is one circle out,†Patricia Ferrari, a partner in the New York office of Fox Rothschild LLP, told the F.T.
