Last week’s decision by the Court of Appeal to reduce a £5.8 million divorce payout by a German heiress (who is said to be worth £100 million) to her former husband to a one off lump sum of £1 million plus a loan for the cost of a family home has significantly boosted the status of Pre-Nuptial Agreements.
The Court of Appeal ruled that a Pre-Nuptial Agreement could be “decisive” in the divorce of the wealthy German heiress Katrin Radmacher. The terms of the Pre-Nuptial Agreement signed in Germany in 1998 provided that in the case of divorce Mrs Radmacher’s husband, Nicolas Granatino, would not be entitled to make any claim against Mrs Radmacher’s assets accumulated before the marriage.
The Court of Appeal overturned the original Court decision reducing the pay out to Mr Granatino to about 1/5th of the original award upon the basis that contracts entered into by “autonomous adults” should, subject to proper safeguards, be recognised. Lord Justice Thorpe went on to say that “The rights of autonomous adults to govern their future financial relationships by agreement should be recognised in an age when marriage is not generally regarded as a sacrament and divorce is a statistical common place”.
Mr Granatino is said to be considering appealing to the House of Lords. However, the decision significantly boosts the status of Pre-Nuptial Agreements and is likely to be welcomed by many middle income families for whom it has enormous potential significance. Pre-Nuptial Agreements could now enter the mainstream of UK family law.