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Are pre-nuptial agreements now binding?

The much awaited decision in the case of Radmacher and Granatino was handed down by the Supreme Court on the 20th October 2010. Helen Saggers, a matrimonial and family law specialist at Barr Ellison Solicitors, analyses the outcome.

The German heiress Katrin Radmacher was successful in her appeal to enforce the terms of a pre-nuptial agreement that she entered into with her French husband. The couple made the agreement some three months prior to their marriage in London. The couple agreed that in the event of a separation Mr Granatino would make no claim against his wife.

The husband subsequently made a financial claim when the marriage broke down. The Court initially awarded him £5,560,000.00. The wife successfully appealed to the Court of Appeal who awarded the husband £1 million and a loan of £2.2 million to buy a house which was to be re-paid when the two children were grown up. The husband appealed to the Supreme Court who by a majority of 8 to 1 dismissed the husband’s appeal. The Court stressed that the existence of a pre-nuptial agreement does not automatically oust the jurisdiction of the court to decide how the assets of the marriage should be divided upon divorce.

The essential point of principle however now established by the case is that the Court should give effect to a nuptial agreement that is freely entered into by each party with a full appreciation of its implications unless in the circumstances prevailing it would not be fair to hold the parties to their agreement.

The Court stressed that parties were entitled to autonomy. The Court will look at whether the parties entered into a pre-nuptial agreement with all the information they needed and with the intention that the agreement should dictate how their finances should be dealt with on divorce.

Although this case does not change the law on pre-nuptial agreements it does give a very clear indication that in the right circumstances such agreements will be upheld.

If you require a pre-nuptial agreement or advice on any area of family law, please contact Helen Saggers.

The information given in this article is of a general nature only and should not be considered as advice applicable to any particular situation for which specific request should be made to us.

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