The importance of a Pre-Nuptial Agreement
Pre-Nuptial Agreements are now being given more recognition by the English Courts and are proving popular amongst wealthy couples.
The reason for the Courts' new approach to Nuptial Agreements is a high profile case last year. The House of Lords Judgement on Radmacher v Granatino decided that Pre-Nuptial Agreements are now presumed binding unless unfair.
Ms Radmacher left the marriage with her £100m fortune intact and the husband was left with virtually nothing. This may seem unfair but Mr Granatino was a French National and his former wife German. He signed the Pre-Nuptial Agreement in Germany and these were not matrimonial assets acquired by them both - it was the wife's family fortune. It therefore could not be considered fair for Mr Granatino to benefit in England when he would not do so either in France or Germany, where the Pre-Nuptial Agreement would be legally binding.
The House of Lords used this case as an opportunity to develop and interpret the law regarding Pre-Nuptial agreements which was long awaited. However, it is still to be seen whether Parliament will go so far as to change the law so that all Pre-Nuptial Agreements are binding despite being fair or not.
A Pre-Nuptial Agreement should be considered from a client's point of view as an insurance policy and are available for people's own peace of mind and security. Although they are not entirely enforceable they are now considered binding unless unfair.
To ensure that Pre-Nuptial Agreements continue to remain fair during the course of the marriage, it is also advisable for a Post-Nuptial Agreement to be entered into. This can particularly deal with changes in circumstances that might render the Pre-Nuptial Agreement unfair and in which case the Post-Nuptial Agreement will be essential. The safest option is to have both.
Pinney Talfourd are specialist Family Lawyers and can assist clients who wish to protect their inherited wealth or assets acquired prior to the marriage. In order to ensure that these are prepared with fairness in mind, we can advise on the best way forward for it to be upheld in the event of divorce.
Please contact our Family Department for further advice and assistance in relation to Pre-Nuptial Agreements and Post-Nuptial Agreements.
