Can Hedge Funds force their employees to sign prenups?
I was looking for a Wall Street related finance forum and I found this site. Hopefully I'm asking this question at the right place, if not I'm sorry and you can delete my post.
I have a friend who's fallen in love with a guy who works at a hedge fund. They're planning to get married, but recently he brought up the topic of prenups to her and said that all of his seniors at the firm forcing him to get prenups or otherwise they will not continue to work with him.
Could this be true? Seriously, can a firm threaten to fire their employees if they don't sign prenups, which doesn't even affect their business in any way? or is he making it up to convince her?
Thanks!
Forcing him to sign a prenup is definitely strange and would say not the norm in the industry at all.
It is more market for your PM to demand prima nocta rights.
He’s making it up
He just doesn't want to seem like an asshole for making you -- I mean, your friend -- sign a prenup so he is blaming it on his firm.
Nah these comments are simping because they're hoeless. All the top funds (think Scion Capital) have this in the onboarding packet.
Prenup is mandatory
For an average HF employee that will never be an issue and totally ridiculous to bring up, however it can be relevant for high-level partners/co-founders/etc since their ownership could be at potential risk, but still extremely unlikely.
HIGHLY unlikely unless he is a very significant partner/co-PM etc, which is less but still very unlikely
He’s trying as hard as possible to bullshit a reason for why he needs a prenup. The reality of the matter is that he doesn’t want to risk his wealth in case he and your friend get a divorce
Prenup no I have not seen but as another poster commented it is not uncommon at all for the spouse to sign away rights relating to equity ownership in a partnership or other investment vehicle at the firm which they can’t have the spouse make a claim for. Outside of that, I can’t imagine there’s anybody doing this
So the OP story is likely legit, assuming the boyfriend has a potential equity position. The "friend" is then calling this release document a "prenup".
I believe the homie
Always get a prenup, these hoes ain't loyal!
If she isn’t okay with a pre-nup she is probably a brokie trying to take his money.
This is not legal advice, just a thought.
Theoretically a prenuptial agreement may actually be an informal requirement for employment if a family has a substantial business interest.
If the firm is structured as a partnership there can also be an informal (highly suggested) arrangement to ask all partners to get a prenuptial.
this. If in some years they ask him to put some money in the fund then a prenup prevents maybe a 50/50 split of that money between her ex and him. This could introduce an "outsider" in the fund that may be in conflict of interests with an employee or generally someone that doesn't align with the funds interest (more because they care about revenge) and may interfere with some governance aspects of the fund.
nothing bad with a prenup, hear my position:
- only married: prenup a must.
- married and having kids: waive prenup
if only married no need to give her a big chunk of your money, she can also work and have hers. If you're planning to have kids, then you can easily waive the prenum because the money you gave her will contribute directly to the kid's material well-being (assuming you didn't marry a stupid one that feeds kids with rice and buys Gucci bags).
the general idea of not having a prenum is that there will be an almost equal split of the money at the end of the marriage because there's the presumption that both partners contributed in equal terms to accumulate this sum of money (for example, the women took care of the house/food/etc. etc. that supported the man to be more productive and focused in his career -- if this argument doesn't hold, then go for a prenup).
It also depends on your relationships. If I really liked her and we split because of some faults of mine, then I'll waive the prenup. If not, if she comes up with some shitty motives, then prenup remains. Anyway, a prenup can stay and after the divorce I can decide how much she deserves for her investment. I have good principles.
i've never heard of this. sounds fake
Commodi esse id quis quos. Illum harum aut ratione voluptas animi. Qui vel facere qui rem perspiciatis. Iusto occaecati non sit omnis quis. Autem quia omnis suscipit voluptatem sequi aut provident. Quis ut sint et alias est.
Dolores est atque tenetur amet eaque. Porro totam aliquam nihil est. Qui eos cum repellat sit inventore est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...