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Latest Changes on Pre-Nuptial Agreements
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'After a recent landmark case, it appears that pre-nuptial agreements have won the clear backing of the English Courts after years of suspicion and hostility, says Fiona Lazenby, Head of Family law at leading Midlands law firm Flint Bishop.
The recent ruling in the now infamous 'Radmacher' case sends a clear message that in future, courts will regard pre-nuptial agreements made by a couple before they wed as more decisive when splitting their assets in divorce.
Judges in England recently upheld a challenge bought by paper heiress Katrin Radmacher, said to be worth around £100 million – ruling that her pre-nuptial contact, signed in Germany, should be upheld in the court.
Radmacher’s former husband, Nicolas Granatino, a former investment banker, had agreed not to claim against Radmacher’s fortune if they were to split, but was awarded £5.85 million for his own use by a high court judge last year, who deemed their pre-nuptial agreement unenforceable under English law.
Radmacher challenged this ruling in the Court of Appeal in April, however, citing that although the agreement was signed outside of the UK, where pre-nuptial agreements are enforceable, this agreement should also be upheld in an English Court.
The Judges agreed, and in early July cut the amount that Grantiano had been paid to £1 million as a lump sum in lieu of maintenance for the couples’ children, with a fund of £2.5 million for a house, which will be returned to Radmacher when the younger of their two children reaches 22.
Whilst this appears an extreme case and one which is far removed from the average divorce case, this ruling has wide reaching implications for couples in the UK, as it could potentially put an end to a partner pursuing extravagant claims from the other partner in the event of divorce.
A pre-nuptial agreement now carries more weight then ever before in a UK court.
Pre-nuptial agreements are not just for the super-rich or celebrity couples, and although they can be considered un-romantic, they do serve a vital purpose. It is perfectly normal in other EU countries for couples to sign a pre-nuptial agreement before marriage, and they can significantly help to reduce any difficulties surrounding assets if a couple where to divorce.
This landmark case finally brings the UK closer to other EU countries. It is hoped that the Law Commission might pass law on this in 2010.
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