Pre-nuptial agreement enforced under UK law

For the first time in a Supreme Court Ruling, prenuptial agreements have been recognised as enforceable under British divorce law. Legal expert Emma Briggs from Oglethorpe, Sturton and Gillibrand reviews the well publicised case of Radmacher v Granatino and the ruling on October 20th this year.

Katrin Radmacher is the heiress to a German paper-making business worth £100 million. Nicolas Granatino was a French investment banker, also from a wealthy family. They met in London where they married, lived and worked in London and had two children together before separating eight years later.

Three months before their marriage in 1998, Radmacher sought to protect her fortune in the eventuality of a marriage breakdown. The couple signed a prenuptial agreement which stipulated that neither party would benefit financially if the marriage ended.

When the couple divorced in 2006, Granatino claimed that at the time of marriage he had no idea of his wife’s wealth and had not received proper legal advice, nor did he have the prenuptial agreement translated from German to English before he signed.

As pre-nuptial agreements are not binding in England and Wales, Granatino brought a claim against his wife for financial provision within the divorce proceedings. Initially, Granatino was successful and was awarded £5.85million.

A year later, the Supreme Court made a final judgment, following the appeal process, and decided in favour of Radmacher. The award was reduced to £1million. The prenuptial agreement was upheld subject to making provision for the needs of the children.

This case has set a significant legal precedent. The Law Commission is currently reviewing the status and enforceability of prenuptial agreements and they are expected to report in 2012. It will only be when there is new legislation in place that a prenuptial agreement may become binding in this country. The prospect of this appears to be on the horizon to bring us into line with the majority of other European countries.

The position has not changed although there has now been a shift in the weight to be attached to a pre-nuptial agreement, meaning that it will be upheld provided that it is fair to both parties and to any child of the family.

The question of whether an agreement is fair will be determined in each individual case. It will be important to show each party had full knowledge of the financial circumstances, had the benefit of independent legal advice and were not under any pressure or duress at the time of signing the agreement. Even then, if the circumstances are such that at the time of separation or divorce then the provision is unfair then it will still not be binding.

It is, therefore, important to take legal advice as early as possible, well in advance of the marriage or civil partnership. Oglethorpe, Sturton and Gillibrand have a strong team of legal experts who can provide you with advice and support on these matters. For further advice on prenuptial agreements, please contact Emma Briggs on 01524 846846.