Flint Bishop

Burton & Dyson issues pre-nup warning after Supreme Court ruling

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 .

 

 

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Article published by Midlands Business News on 29 October, 2010

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