Change of status for Pre-Nuptial Agreements

21st October 2010 15:08

The case of Radmacher (formerly Granatino) and Granatino has caught the headlines in recent years.  In short, Katrin Radmacher and Nicolas Granatino married in 1998. As a way of proving that they were marrying only for love they agreed to prepare and sign a pre-nuptial agreement. At this time Katrin Radmacher was worth over £100m in terms of family company shares and assets.  Nicolas Granatino was at the time working in the City and at one point earning approximately £325,000.  However, in 2003, Mr Granatino opted for a change in career and became a researcher at Oxford University earning £30,000 per year. Unfortunately, the marriage then broke down in 2006.  It was then that matters came to a head.

Ancillary (financial) relief proceedings ensued and in 2008 Mrs Justice Baron awarded Mr Granatino the sum of £5.8m ignoring the pre-nuptial agreement previously signed by both parties.  This was on the basis that Mr Granatino had argued that he did not know, understand the implications of the Agreement and that there had not been full financial disclosure.

 Ms Radmacher then appealed to the Court of Appeal where in 2009 it was ordered by Thorpe LJ (leading) that pre-nuptial agreements should be taken into account in ancillary relief proceedings. As such, Mr Granatino’s lump sum was reduced to £1m plus a share in a £2.5m property until the couple’s youngest daughter attained the age of 22.

 Mr Granatino, unsurprisingly, was not happy with this decision and so he appealed to the highest Court in England and Wales; the Supreme Court.  He stated that going along with the Order of the Court of Appeal would mean that he would face “financial catastrophe” according to his barrister Nicholas Mostyn QC.

Today Mr Granatino’s appeal against the decision of the Court of Appeal was dismissed on a majority of 8 to 1 with the majority of the Judges determining that there was nothing unfair about the content or the circumstances in which the Agreement was made to make the pre-nuptial agreement invalid; Mr Granatino was an able man and the generous settlement meant that he was able to meet the needs of his children and himself. 

It must be remembered that whilst this is case law and does not change statute law, the Law Commission will decide in 2012 whether or not the law should be changed to make pre-nuptial agreements fully enforceable. Watch this space…

Why should I use a Solicitor to draw up a proper prenuptial agreement?
Well, you do not need to use a solicitor but we would not recommend that you do it any other way! The cost is minimal compared with the financial protections and benefits that you will get from a properly drawn-up prenuptial agreement. The greater your wealth, the greater the importance of getting independent professional legal advice.

 For more information, contact Liz Lacey on 01452 509859