Pre-Nuptial agreements are now binding

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Pre-Nuptial agreements are now binding

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The Supreme Court has ruled that a pre-nuptial agreement is now binding.

The ruling came from a German paper company heiress’s ex-husband who went to the Supreme Court after appeal judges slashed his divorce settlement from more than £5million to £1million. This is thought to be only around 1% of her total assets.

The court agreed that in the right cases where parties have both voluntarily entered into the agreement, the agreement is not unfair to one particular party and both parties are aware of the implications of the agreement then the Court will uphold pre-nuptial agreements.

The Supreme Court said that following their ruling, which was published on the Supreme Court’s website, “it will be natural to infer that parties entering into agreements will intend that effect be given to them. It seems somewhat dated and a worthless document to have if it is not going to be a binding contract between two parties.”

Up until this judgement pre-nuptial agreements were not binding but were simply taken into account in the overall circumstances of the case. However, this judgment shows a modern approach is now being taken in a society that is constantly trying to safe guard themselves. Pre-nuptial agreements are a further example of people wanting to ensure that their personal effects and any fortune they have built up prior to marriage is protected from their wife or husband. There are many views. Is it taking caution too far and contradicting the point of marriage? Marriage is seen as a partnership and some believe that it involves two people sharing their lives together. This includes sharing each other’s successes and failures. Should one party be segregated from this?

Giles Dobson, Matrimonial partner at Martin Tolhurst says “With the rise in second marriages plenty of people are entering marriage with more assets than ever before. Any attempt at making the law clearer is welcomed but it cannot be seen as a blanket approach and there will still be cases taken to Court over whether future pre-nuptial or even ante-nuptial agreements are fair or not. What might be fair to one is not necessarily fair to another and what was fair at the outset of a marriage may well sadly not be fair at the end.”