Pictured above: Jane Cowley, Harvey Ingram
A new Court of Appeal ruling over an heiresses' pre-nuptial
agreement has highlighted their value and could help pave the way
for them to become legally binding in England and Wales
The Court of Appeal took Germen heiress Katrin Radmacher's
pre-nuptial agreement into account when it overturned an earlier
decision to hand £5.8 million of her £100 million
fortune, to her estranged husband. The couple's pre-nuptial
agreement stated that Miss Radmacher's husband would not make a
claim if they divorced. Despite it being signed in Germany in 1998,
the Court of Appeal upheld the agreement in Miss Radmacher's
favour.
Pre-nuptial agreements are frequently linked to the rich and
famous. But research shows that many divorcees now believe a
pre-nuptial agreement could have paved the way for a fairer, more
amicable, less costly and faster settlement.
Jane Cowley, head of Family Law at Harvey Ingram, has been
following the case closely. She says: "Although pre-nuptial
agreements are not currently legally enforceable in England and
Wales, Miss Radmacher's ruling clearly highlights the far greater
weight and consideration being given to them by the courts. This
case also shows why they are worth the effort, as courts will
always consider them as a relevant factor when reaching a
settlement - provided certain guidelines have been followed."
For pre-nuptial agreements to be considered by the courts, both
parties must prove they had legal advice, made full financial
disclosure and were under no duress when entering into it.
Pre-nuptial agreements should also be signed at least 21 days
before the marriage takes place, to avoid any suggestion a partner
was pressured into it on the eve of their wedding.
Jane Cowley adds: "This may sound like a lot of effort but there
is a groundswell of support in England and Wales for pre-nuptial
agreements to become legally enforceable - except where there is a
risk of significant injustice."
Despite the agreements' growing popularity, they are underpinned
by very little case law as it is felt only a small percentage of
couples are going into them, amid fears that they may not be
upheld. In the few cases that have reached the courts, judges are
willing to enforce at least some of the terms - as long as they are
deemed fair. But Miss Radmacher's case may now help pave the way
for them to become enforceable within the next five years, as more
and more judges take them into account and give weight to them.