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.<\/p>\n
At least one hedge fund in the United States is refusing to take on new partners until they sign a \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cpost-nup\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d barring their spouses from making any claims on the fund, Ken Burrows, a New York attorney who has written all the fund\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s agreements, told The F.T. Mr. Burrows apparently declined to identify the firm because of confidentiality rules.<\/p>\n
The report acknowledges that most hedge funds aren\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t as extreme as that, but says that partners often encourage one another to sign them, to protect both the firm and themselves.<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe marital relationship has traditionally been the secret close bond. Now it\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s the business partners, the hedge fund world, the drinking buddies \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 and the spouse is one circle out,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d Patricia Ferrari, a partner in the New York office of Fox Rothschild LLP, told the F.T.<\/p>\n