Ruling gives weight to prenuptial agreements

A landmark ruling in which a German heiress used a pre-nuptial agreement to deny her ex-husband a share of her £100 million fortune adds considerable weight to the value of such agreements, say Coventry and Warwickshire solicitors Alsters Kelley.

Adrian Bannister, a partner in the firm’s Family department in Coventry, says the ruling by the Court of Appeal is a warning for those who think such agreements can be ignored in the UK.

"Traditionally, courts in England and Wales have said agreements like this have no force but the Appeal Court ruling changes all that. It is probably the first move towards recognising that they have some – if not total – validity,” he said.

"As with all these things, the exact circumstances will vary according to the facts, so it is difficult to draw hard and fast conclusions. However, it does look as though the courts are edging towards recognition of pre-nups.

 
"In general terms, the longer the marriage goes on and when children are involved, the less weight the court will give to the agreement,” he said. "However, in the majority of cases, these are agreements which are entered into by rational, consenting adults before they marry. They should be seen as similar to any other commercial agreement entered into by two parties.

"We may well see the case go to the House of Lords for a definitive ruling, of course, and it will be interesting to hear the final arguments on whether pre-nups are legally valid. However, whatever the final ruling, their value in setting out realistic expectations from the outset of a relationship cannot be questioned.”

In the case in question, Katrin Radmacher, 39, won a ruling from the Court of Appeal that the pre-marital agreement she signed in Germany with Nicolas Granatino, 37, should be taken into account. His original settlement of £5.8 million awarded by the High Court was downgraded to £1 million.

Mr Bannister added that properly drawn-up pre-nuptial agreements no longer needed to be the preserve of wealthy celebrities and could play a positive role in marriage preparation.

"For couples who use sensitive lawyers, ideally with a mediation or collaborative law background, the process of preparing a pre-nuptial agreement can be a positive part of preparing for marriage because it encourages couples to think and plan together.”

 

You can read more at The Birmingham Post.