Pictured above: Rachel Brennan

The long awaited decision of the Supreme Court on pre-nuptial agreements has upheld the Court of Appeal's decision that a pre-nuptial agreement can indeed be the decisive factor in determining a husband or wife's financial claim in divorce proceedings.

The case of Radmacher -v- Granatino involved a German heiress and her French husband who had entered into an agreement that neither would acquire any benefit from the property of the other.  

On a majority decision, the Supreme Court has held that the husband should be bound by the agreement.

Family lawyer, Rachel Brennan of Berryman, says: "Over recent years, the Courts have been moving towards upholding pre-nuptial agreements, sometimes reducing the award they would have made had the agreement not existed.  In deciding any financial case, the Court has to take a number of specified factors into account, but it also has to consider 'all the circumstances of the case'.  Pre-nuptial agreements are one of those circumstances.  

"In this case, the Supreme Court has confirmed that the existence of the pre-nuptial agreement can indeed be the decisive factor, but the decision still leaves the Courts with the power to make alternative financial provision to that which the parties have agreed because Statute provides the Court with this discretion."

She adds: "This case is good news for clients who want to regulate their own affairs.  Litigation is notoriously uncertain; two judges could hear the same case and come to a different conclusion.  While an experienced family lawyer can give guidance as to the likely outcome of a case, the Court has a great deal of discretion in deciding how financial issues are resolved.  This case means that those people who choose to decide in advance what should happen if their marriage ends in divorce - as many marriages do unfortunately - can now have more confidence that their wishes will be upheld. This case is saying the Court should give effect to an agreement if it has freely been entered into by both parties, with an appreciation of its implications unless in the circumstances of the case it would not be fair to hold them to the agreement.

"In recent years, Berryman has seen an increased demand for pre-nuptial agreements.  They are most common in cases where the parties marry later in life or have been married before and want to pass on their wealth to the children of the first marriage."

Berryman is a Midlands' law firm based in Nottingham, which provides an extensive portfolio of legal services within four key areas: Business Services, Property & Construction, Insurance Services and Private Client. It employs over 130 people and has 17 partners.  For more information, T: 0845 310 7200, or visit www.berryman.co.uk.