Radmacher v Granatino [2010] UKSC 42

KEY POINTS

• An ante-nuptial agreement has the potential to include terms that contradict what a court would typically view as equitable.

• Nonetheless, the guiding principle is that a court should uphold a nuptial agreement willingly entered into by both parties with a complete understanding of its consequences, unless, given the specific circumstances, it would be unjust to enforce the agreement upon the parties.

• In the context of the case, the husband's acceptance that he would not be entitled to a portion of his wife's wealth, which she received independently from her family before the marriage, negated any claim to it.

FACTS

• The appellant and respondent were married in 1998, the husband being French and the wife German.

• Before their marriage, they signed an ante-nuptial agreement in Germany, subject to German law, which stated that neither party would benefit from the other's property during the marriage or its termination.

  • The wife insisted on the agreement, as her family would transfer more wealth to her if it was signed.

  • The husband, who was working as a banker at the time, chose not to seek independent advice on the agreement.

• After eight years of marriage, the couple separated.

• Granatino (appellant) sought to challenge the validity and enforceability of the prenuptial agreement. The main issue was whether the court should uphold the terms of the agreement, given that it was not recognized as legally binding under English law at the time of their marriage.

COMMENTARY

• This was a pivotal case in the legal landscape of prenuptial agreements in England and Wales.

• The ruling established a framework for the enforcement of prenuptial agreements, emphasizing the importance of parties' autonomy and ensuring that the agreements were fair and freely entered into.

• As a result, prenuptial agreements gained more credibility and became an essential tool for individuals seeking to protect their financial interests and assets in the event of a divorce.