Pre-nuptial and post-nuptial agreements revisited
I refer you back to my article posted on the 11th March 2010 regarding pre-nuptial and post-nuptial agreements where I promised to keep you up-to-date with the ruling of the Supreme Court when it took place.
Well, the Court has now made a landmark ruling by upholding a pre-nuptial agreement not recognised by British law. The ex-husband involved in the case has had his divorce settlement significantly reduced after the court upheld the pre-nup and the ruling now falls in line with an agreement made under German law (relevant because his ex-wife is German), that he would not make a claim on his wife’s £100 million fortune in the event of a split.
Until now courts in England and Wales have not considered pre-nups made abroad to binding.
So it would seem that it would still be beneficial to have both agreements in place as well as trusts to be as safe as possible. The potential benefits should be considered by most wealthy people for their children and for themselves. As financial planners we continue to include these arrangements in our estate planning discussions with our clients and can arrange meetings with the recommended law firm if required.