Pre-nuptial agreements are legally binding, the Supreme Court has held in a landmark ruling on divorce.
The judgment in Radmacher v Granatino [2010] UKSC 42 this week substantially alters the law of divorce in England and Wales. This is the first time that a pre-nuptial agreement has been held to be enforceable.
The court found in favour of Katrin Radmacher, a German heiress, who sought to protect her millions by signing a pre-nup in 1998 that stipulated neither party would benefit financially if the marriage broke down.
Lord Phillips, president of the Supreme Court, emphasised that the courts would still have discretionary powers to waive any pre-nup or post-nup, particularly if it was unfair to a couple’s children.
Simon Bruce, head of the family team at Farrer & Co, who acted for Radmacher, says: “This decision means pre-nups are binding as long as they are fair.
“Pre-nups are like a form of fire insurance—better taken out before the event rather than after it. Everybody hopes their marriage will last a lifetime. From today we are allowed to prepare for the possibility that it might not be the case. “This judgment is pro-marriage. Good pre-nups will keep couples together if they marry for love, not money. It holds for cohabiting couples, too.”
