Landmark Divorce makes Pre-nuptial agreements binding

The British High Court has seen a high landmark divorce case that could change the future role of the legal standing of pre-nuptial agreements in England and Wales. The ruling in favour of the German heiress Katrin Radmacher over her ex-husband, Frenchman Nicolas Granatino, will bring this part of family law in line with most of Europe.

When the couple married in 1998 they signed a pre-nuptial agreement in Germany under German Law stating that neither would make any financial claims should they divorce in the future. However, while married they lived in the UK, where they also divorced, which until now had not recognised pre-nups. An initial court ruling had stated that Grantino should receive over £5 million from his former wife. This new case has overturned this though, and he will now receive £1 million.

This case means a significant change in family law in England and Wales. Pre-nups had not previously been considered legally binding but this will now change. As long as they are deemed fair by the court this should mean pre-nuptial agreements will dictate what each member of the marriage will receive after a divorce. It will though, still be overruled if it is deemed unfair to any children of the marriage. It will be unlikely that one person will be left high and dry if they have no savings or income.

To begin with this is only likely to affect wealthy couples, or couples who are marrying where one person is significantly wealthier than the other. Eventually though, it could filter down to those of a more average wealth, something that has been seen amongst some in other parts of the world. In terms of the actual amount of money the wealthy have more to lose post divorce (although it could be argued they are more able to afford to lose it), so they are more likely to seek a pre-nuptial agreement.

Where one person in a marriage is significantly wealthier than the other, the one less well off will still likely receive something, partly because it is likely to be stated in the pre-nuptial agreement in the first place. If not, and a pre-nup is contested, a court will likely rule more in favour of the less well off person than the pre-nup states. In this landmark case Nicolas Grantino has still been told he will receive £1 million. What it is likely to result in, where stated in a pre-nuptial agreement, is an end to some of the astronomical divorce settlements that have been seen in the past.

The divorce case between Katrin Radmacher and Nicolas Grantino is important. Pre-nuptial agreements have been legally binding to some extent in the United States and Europe, and this will now be similar in England and Wales. Pre-nups will not necessarily be stringently stuck to one hundred per cent of the time but it is likely to form at least a basis for a divorce settlement, and where considered fair courts will likely rule that settlements should mirror the agreement made by the couple prior to their marriage.

Andrew Marshall (c)