How to look after your assets

With couples starting a family at a much later stage in their lives than previous generations, you may be one of the individuals who worry about your hard earned savings. While wishing to ensure a good standard of living for your family you may also not want to give it away! Depending on the stage you are at in life, you may benefit from legal advice.

Co-habitation and pre-marriage

Pre-nuptial agreements have been around for many years particularly on the continent but the English courts did not consider them enforceable. The landmark Supreme Court ruling in the case of Radmacher – v – Granatino recently changed all that.

As reported in our firm’s article recently published in the Midweek Chronicle, the case involved two foreign nationals, both residing in the UK. Prior to their wedding, they had signed a pre-nuptial agreement, which safeguarded multi millionaire Mrs Radmacher’s estate. When their marriage broke down, Mr Granatino sought to obtain a greater settlement than entitled to under the terms of the agreement.

On reaching the Supreme Court, the highest judicial authority in the Country, the case was decided on the basis that the parties had entered the agreement without any undue influence or misrepresentation. Mrs Radmacher was therefore able to preserve most of her pre-marital wealth, while Mr Granatino became entitled to a smaller settlement than he sought to obtain. Furthermore, their Lordships ruled that pre-nuptial agreements could be enforceable in English courts provided that they meet the fairness test. Only manifestly unfair agreements will be disregarded by the courts.

The ruling opens up the way to those with money protecting themselves against the failure of their marriage provided they have full knowledge of the extent of each other’s wealth and are in full agreement with the terms proposed. In case of dissolution of their marriage or civil partnership, they can be assured that the courts will give effect to their prior agreement.