Gainsborough-based law firm Burton & Dyson is advising
couples planning to get married to give careful thought as to
whether they should consider entering into a 'pre-nuptial'
agreement following a landmark ruling by the Supreme Court.
The test case, between a German heiress and her ex-husband is
the first time a pre-nuptial agreement has effectively been
enforced by a UK court.
When the couple married in 1998, they signed a pre-nup stating
that neither would benefit financially if the marriage ended. At
the time, the husband was earning a six-figure salary as an
investment banker but, by the time the couple separated in 2006,
was earning substantially less as a researcher at Oxford
University.
Despite having agreed not to make any claims on his wife's
fortune, the husband was awarded in excess of £5 million by a
High Court Judge in 2008, which was subsequently reduced to
£1 million last year when the Court of Appeal ruled that the
pre-nup had to be taken into account.
That ruling was last week upheld by the Supreme Court, which
said that it was not unreasonable for anyone entering into such an
agreement to expect it to be adhered to.
While pre-nups have long been recognised in most European
countries, they have never been legally binding in England and
Wales. That has now been changed by this ruling which held that
they should be considered to be binding unless the agreement is
deemed by the Court to be unfair.
Burton & Dyson is now advising couples who have significant
assets or expect to acquire them (for example by way of
inheritance) to consider entering into a pre-nup to ensure, for
example, any inheritance can be protected for future
generations.
Peter Bishop, head of private client family law at Burton &
Dyson, said: "Although pre-nuptial agreements are still not
absolutely binding in England and Wales, the Supreme Court ruling
means they are now more likely to be upheld than not, especially if
it can be shown that at the time it was made it was likely to be
seen by a Court as fair.
"Couples should now give careful thought to what they wish to
protect and be prepared for their arrangements to be enforced by a
court, even if one party's personal circumstances have
changed."
For further information on pre-nuptial agreements or any other
family law-related matter, please call Peter Bishop on 01427
610761, or visit www.burtondyson.com
.