NEWS ARCHIVE How the changes to bankers’ pay packages could affect divorce settlements. Not just for the super-rich: pre nuptial and post nuptial agreements. Financial Times Wealth Questions: what happens if a spouse files for bankruptcy during divorce? Bankruptcy during divorce: what you can learn from Scot and Michelle Young. International Child Abduction: What Rights Do Parents Have?
			« 1 2 3 4 5 6 »

Pre-nups hold greater weight than ever before

Henry Brookman discusses whether pre-nuptial agreements are worth the paper they are written on. Published on the Financial Mail Women’s forum.

In the past, pre-nuptial agreements have often been considered as unromantic and in the UK, generally a waste of time. But following a Court of Appeal case in July 2009 (Radmacher –v- Granatino; read Henry Brookman’s article ‘English courts recognise pre-nuptial agreement’ for details), a pre-nuptial agreement in England or Wales may now hold greater weight than ever before.

There are a number of factors that may influence a judge when ruling an outcome of a pre-nuptial agreement case, these include: whether both parties sought legal advice, whether a full disclosure of each party’s assets was made prior to the marriage and whether the agreement was negotiated a reasonable amount of time prior to the wedding so one party did not feel forced or hurried into the agreement.

Following the above mentioned case, the Court of Appeal also discussed pre-nuptial agreements in second marriages. Lord Justice Thorpe said that the typical stereotype of very wealthy men seeking pre-nuptial agreements was not always justified. He said that mature couples may wish to seek an agreement that will protect their assets for the future and consider the interests of their children from earlier marriages. He continued to say that a carefully drafted contract could be more beneficial than the stress, expense and anxiety that the dividing of assets can bring following a divorce. However, issues with child maintenance and possibly associated housing costs should not be included as part of the pre-nuptial agreement as under English law, the courts cannot be excluded from dealing with these issues at the time of divorce.

Couples can now be more confident that their pre-nuptial agreements are more likely to be worth the paper they are written on following the case of Radmacher –v- Granatino. Henry Brookman says that couples should seek advice when negotiating an agreement and that most contracts are straightforward (especially if the couple separate before having children). However, it is important that an experienced practitioner is involved in the negotiation of an agreement that includes changes over time, such as the arrival of children or a change in financial circumstances.

Those who are unsure about pre-nuptial agreements should contact Brookman Solicitors for more advice.