Legal history was made this week when the Supreme Court recognised the validity of prenuptial agreements.

The Appeal Court ruled that the assets of the £100 million German heiress Katrin Radmacher should be protected from her French ex-husband Nicholas Granatino due to the existence of a prenuptial agreement signed in Germany before their marriage in 1998 in London. The prenuptial agreement stated that both parties would not seek financial settlement from each other if the marriage ended however upon their separation in 2003 Mr Granatino sought financial relief from Miss Radmacher.

Following the divorce in 2006, Mr Granatino challenged the prenuptial agreement in the courts and was given a £5.85 million settlement by the High Court. This was reduced the following year by the Court of Appeal to a £1 million lump sum in lieu of maintenances and a £2.5 million house which will be returned to Miss Radmacher upon the youngest of the two children reaching 22. The Court made it clear that they were awarding the money for the benefit of the children.

Had the divorce taken place in Germany or France Mr Granatino would have received nothing due to the existence of the prenuptial agreement which had been freely entered into by both parties.

Although Miss Radmacher was discouraged by English lawyers from trying to enforce the prenuptial agreement, she challenged the Court of Appeal’s decision and on the 20th October 2010 the Supreme Court found in her favour. This decision will inevitably lead to an increased recognition of prenuptial agreements in English law.

Whist at present prenuptial agreements are still not binding under English Law, Lord Justice Rix called for Parliament to clarify the law on them and Lord Justice Thorpe recognised that English matrimonial law was in danger of being out of step with Europe and the Courts were in “danger of isolation”.

The Law Commission are considering current legislation and are due to report back on this matter in 2010 however the Radmacher prenuptial case is the first of its kind to be given legal recognition by the English legal system.

ENDS
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