| Press Release |
 Pre-Nuptial Agreements – Local solicitor wary of recent court ruling - 12 July 2009
Pre-Nuptial Agreements – Local solicitor wary of recent court ruling
A recent Court of Appeal ruling on a case involving a pre-nuptial agreement held, for the first time in an English court, that such agreements should be taken into account by the courts when dividing assets after a marriage failure.
However, Helen Meredith, a partner of Treasures solicitors in Gloucester and a family law specialist, is warning that this case does not necessarily set a precedent and does not guarantee that all pre-nuptial agreements will in future be considered binding by english courts.
“This was not a typical matrimonial case” Helen warns. “The wife was an heiress and a German national and the husband Italian, although they had married in England – in both Germany and Italy pre-nuptial agreements are enforceable in the courts, but not generally in England.”
The couple had signed a pre-nuptial in Germany before they married in England in 1998. The husband had given up a lucrative career as an investment banker, taking a much lower paid job in 2003, prior to the couple’s divorce in 2006. Last year a High Court ruling, ignoring the pre-nuptial, awarded the husband £5.8 million. The wife appealed against the decision, on the basis of that the pre-nuptial should be considered, and the Court of Appeal upheld her case and awarded the husband £1 million.
“It is probable that the husband will apply for leave to appeal to the House of Lords” Helen continued “indicating that this decision remains contentious, and does not clarify the issue of pre-nuptials entirely. The issue will remain unclear until and unless Parliament passes a new law. Essentially this case has demonstrated that pre-nuptials may be taken into account by the courts. However, it remains the case that divorcing couples cannot be guaranteed their acceptance by the court.”
“Notwithstanding this unclear state of affairs” Helen continued “we would advise clients to consider drawing up a pre-nuptial agreement where one of the parties is significantly wealthier than the other, and wishes to protect their situation in the event of a future divorce.”
Further Information: Helen Meredith, Treasures solicitors, 01452 525351
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