October 29th, 2010
Prenuptial Agreements and the UK
The UK Supreme Court has taken a major affirmation toward fully recognizing prenuptial agreements, the Chicago Tribune reports.
Traditionally, the United Kingdom has refused to recognize prenuptial agreements as valid binding agreements. But on October 20th the court ruled “in favor of a German heiress seeking to protect her considerable fortune from her ex-husband.”
With a strong 8-1 vote, the Supreme Court, lead by Nicholas Phillips (president of the Supreme Court), allowed an Appeals Court ruling to stand which upheld the legality of the prenuptial agreement.
The case was full of potential international law problems. Katrin Radmacher, 40, a paper industry heiress with at least $86.5 million U.S. dollars, is from Germany. Her ex-husband, Nicolas Granatino, 39 is a former investment banker from France. He was attempting to receive a larger portion of Radmacher’s fortune than was prescribed for in the prenuptial agreement.
The prenuptial agreement was signed in Germany, but since the marriage was under English law, the couple lived in England, and the divorce was filed there, the courts were able to apply English law and not rely on complex international law.
Radmacher’s lawyer sees this case as setting a precedent for all prenuptial agreements in the United Kingdom. Shortly after the judges verdict her lawyer, Simon Bruce, said that this, “means pre-nups are binding as long as they are fair.
Others aren’t as sure that this case will be as major a change. Sharon Bennett, a family law expert at a North London firm, thinks that the law is unlikely to change as a whole as a result of this one case.
Granatino still received 1 million British Pounds from the divorce, roughly 1.57 million U.S. dollars. And early on in the marriage, Granatino was earning a full 300,000 pounds, or approximately $471,000 U.S., a year as an investment banker. In 2003, Granatino left his job to attain a doctorate in biotechnology at Oxford University, and now is only making a faction of his former salary.
The current ambiguous law about prenuptial agreements is going to be reviewed by Britain’s Law Commission. The catch is, the review isn’t going to happen until 2012.
Until the review of the law, a dangerous level of ambiguity will continue to surround the status of prenuptial agreements in Great Britain. It is pretty astonishing that in a country like the United Kingdom, the law would be so confusing over such an important topic to many people.
It seems like it should be central to most modern laws to allow private parties to contract to agreements. Especially when these agreements would aid the courts in reducing cases. If the United Kingdom does allow for prenuptial agreements, like most countries, then the court will no longer be put in the position of having to decide who gets what property. These decisions can be left to the parties to determine early on.
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