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Pre-nuptial Agreements may become enforceable in the UK
Practice area: Family
Neale Grearson
One of Germany's richest women, Katrin Radmacher has succeeded in getting a pre-nuptial agreement recognised in a British court. This overturns a previous decision which awarded her ex-husband £5.6 million of her £100 million fortune in spite of the fact that they had a pre-nuptial agreement in which he said he would have no claim on her money.
How does this affect anyone in East Anglia who has, or is considering creating, a pre-nuptial agreement? According to Neale Grearson, a family law partner at Kester Cunningham John Solicitors, the decision could pave the way for them to become legally binding in England and Wales as they are in Germany, France and parts of the USA. However, it is important to bear in mind that this particular case was unusual in that the two parties came originally from Germany and France, where the Pre-Nuptial Agreement would have been enforceable.
Neale explains: "There were fears that the case would fall at various hurdles, in particular the fact that her husband, Nicolas Granatino, had not received legal advice before signing the agreement. Miss Radmacher had also failed to disclose the full extent of her assets. The fact that it succeeded in spite of these issues makes it increasingly likely that Pre-Nuptial Agreements will soon have the same legal status here as they do in various countries abroad.
Generally, for a pre-nuptial agreement to have any chance of helping a couple when they separate there are several criteria which must be met. Both parties must have received their own independent legal advice about the content of the agreement. There needs to be full disclosure of each person's financial position before the agreement is entered into so that both parties are fully aware of the financial implications of what they are signing. If the information is not disclosed, the agreement will fail. The agreement also needs to be signed at least 21 days before the date of the marriage.
The aim of a pre-nuptial agreement is to demonstrate what the parties intended to happen financially if they were to separate. Although not yet legally binding in the UK, an agreement can carry a lot of weight in deciding the financial outcome of a divorce if it clearly demonstrates what the intentions were at the start of a marriage.
We are seeing an increasing number of people seeking to make Pre-Nuptial Agreements, particularly those who have struggled to preserve their assets following a divorce and are now planning to re-marry.
This case has given us greater guidance but it is likely that there will be an appeal to the House of Lords when the long-term picture will become clearer".
Kester Cunningham John ran a breakfast seminar on pre-nuptial agreements and related business issues in Norwich in mid June and will be running similar events in Cambridge and Bury St Edmunds in the autumn.
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