Prenuptial Agreements Gain Recognition in English Law |
A recent ruling of Appeal Court judges has seen prenuptial agreements being given recognition in English law for the first time.
In a landmark case, judges ruled that because of the prenuptial agreement signed before they married the ex-husband of paper industry heiress Karin Radmacher should not be entitled to her £100 million fortune. The implications of the case could be significant and in future divorce cases judges deciding the division of a couples assets may be expected to give due weight to any prenuptial agreements signed before the marriage.
Miss Radmacher, 39, had brought her case to Court of Appeal to challenge an earlier ruling in the High Court that she should give £5.85 million to Nicolas Granatino, despite him having signed a contract vowing never to make a claim for her assets should they separate.
That ruling had been made by Mrs Justice Baron, in the Family Division, who had said it would be “manifestly unfair” to hold Mr Granatino to the pre-nuptial contract as such agreements had never been legally binding in this country. Although the agreement was signed in Germany, the couple married in London in 1998 which was the reason for the case was being heard in England.
In yesterday’s landmark ruling, Mr Granatino’s settlement was cut to about £1 million as a lump sum in lieu of maintenance, with a fund of £2.5 million for a house which will be returned to Miss Radmacher when the youngest of their two daughters, who is six, reaches 22. But the ruling made clear the court was awarding the money for the children – which the pre-nuptial agreement always stated fell outside its remit.
Prenuptial agreements are still not binding under English law since there is no provision for them under Section 25 of the 1973 Matrimonial Causes Act. However in the 47-page judgment, Lord Justice Rix called for Parliament to clarify the law on them, saying he could see “great force” in the argument that they be treated as “presumptively valid”.
The Law Commission is due to report on the matter by 2012 and draft legislation is expected to follow.
Last changed: Jul 13 2009 at 9:23 AM
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