Access Legal from Shoosmiths

Pre-nuptial agreements ruled legal

By Karen Shakespeare
Published: 09:25AM BST 04 Nov 2010


On 20 October 2010, the UK Supreme Court ruled that English courts should enforce pre-nuptial agreements as long as they're fair.

The judgement came in the long-running divorce case of Radmacher v Granatino.

Katrin Radmacher, a wealthy German heiress, married Nicolas Granatino in London in 1998. They'd signed a pre-nuptial agreement in Germany stating that neither party had a claim on the other's assets. 

Miss Radmacher had insisted on the agreement, because her family would withhold her estimated £100m fortune without such an agreement being signed.

The couple separated in 2006 and commenced divorce proceedings through the English courts. Despite the pre-nuptial agreement, the court awarded Mr Granatino a settlement of £5.5m. Katrin Radmacher appealed to the Court of Appeal, which reduced Mr Granatino's settlement to £1m, leading him to appeal to the Supreme Court. 

The Supreme Court judges concentrated on achieving fairness between the parties and said that 'decisive weight' should be given to the pre-nuptial agreement. They agreed that Mr Granatino should only receive £1m, which is still more than he would have received under the agreement.

The ruling is a major step towards pre-nuptial agreements, including those signed abroad, becoming legally enforceable in England and Wales.

However, courts will still look at the facts of each case on an individual basis to determine whether the agreement is fair.

Agreements signed after a marriage has commenced, or pre-nuptial agreements that are re-signed during the marriage, have traditionally been given more weight by courts. Family lawyers are continuing to advise people to make post-nuptial agreements.

Cohabitation agreements are also recommended for couples choosing to live together without marrying. Despite the common myth, common law spouses don't exist in law, and unmarried couples currently have no legal rights if their relationships end.

Tell us what you think

All documents should be read and used in accordance with the terms and conditions. This document is for your general information only and is not a detailed statement of the law. It is provided to you free of charge and should not be used as a substitute for specific legal advice. If you require specific legal advice please contact our helpline on 03700 86 86 86.