Fair family agreements are now binding

Release date: 19/1/2010

The UK Supreme Court today ruled in a landmark case that a pre-nuptial agreement is binding – a decision that has enormous implications for couples everywhere.

Katrin Radmacher's ex-husband Nicolas Granatino had gone to the Supreme Court after three appeal judges slashed his divorce settlement from more than £5m to £1m. But by an overwhelming and decisive majority the Supreme Court dealt him a devastating blow, dismissed his appeal and imposed a general rule that fair family agreements will be a compelling factor in cases.

Andrew Breakwell, Harvey Ingram's new head of Family Law, has enormous experience in pre-nuptial agreement planning and has been following the case closely.

He says: "This is a long awaited and very welcome decision. Families want to protect and control their assets. This judgment introduces much needed clarity and will now enable couples to fairly plan their finances before or during their marriage. Family agreements no longer have an air of Teflon about them. They are intended to stick and to bind parties. It is refreshing to see an end to the nanny state attitude that prevailed.

“At long last the parties themselves have much more say and have far greater control over their financial affairs. We are ideally placed to assist families in protecting, controlling and fairly dealing with their wealth."

Mr Granatino was a French investment banker who became an Oxford University researcher. He and his German former wife signed their pre-nup in 1998. They spent most of their life together in London, until their divorce in 2007. In July, the Court of Appeal agreed that Katrin Radmacher, thought to be worth £100m, should be protected by the terms of a German marriage contract. But her ex-husband Nicolas Granatino was fighting to get that ruling overturned.

Ms Radmacher's former husband had agreed not to make any claims on her fortune if they split up, but was awarded £5.85m by a High Court judge in 2008. She challenged that decision and judges at the Court of Appeal agreed that the couple's pre-nuptial contract should have been taken into account.

They slashed his lump sum payment to about £1m. Mr Granatino also received a £2.5m fund for a house, which would return to Ms Radmacher when the younger of their two daughters, aged 10 and seven, reaches 22. Mr Granatino said being forced to accept the smaller settlement would leave him in financial ruin, and he asked the Supreme Court to reverse the decision.

Harvey Ingram is ideally placed to assist families in protecting, controlling and fairly dealing with wealth management. We have an outstanding offering now brimming with experts to maximise and safeguard individual and family wealth - be it within a company, property or in sophisticated structures on and offshore.