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If you think this section couldn't possibly apply to you, just consider that England has the highest divorce rate in Europe, second only to the United States. Almost one in two marriages in England will end in divorce. Statistically that's an awful lot higher than your house burning to the ground or your car being written off in an accident, but would you hesitate in insuring against these remote risks?
In 2003, the case of K -v- K changed the way the English courts view prenuptial agreements. A wealthy property developer married his pregnant girlfriend, with both signing a prenup the day before the wedding. The relationship ended within the year, and the wife launched a multi-million pound claim on his assets. However, their prenuptial agreement was upheld, saving the husband millions of pounds.
Previously most judicial decisions did not favour prenups and postnups on grounds of public policy, but there has been a sea change in the way courts now view financial agreements within marriage. Post-nuptial agreements (those made during marriage) are now considered to be fully binding following the case of Macleod in December,2008.
However it is vital that such agreements are correctly drafted and that they satisfy a raft of different legal requirements based on the judgments of previous case law. Downloading a form and hoping for the best with your life savings simply won't do.
As for pre-nuptial agreements (those taken out immediately prior to marriage) there has been increasing pressure from Europe, where prenups have been fully binding for years, and from the family law solicitors organisation, Resolution, which takes the view that adults should be entitled to regulate their finances as they choose without interference from the state. Despite not being considered fully binding in all cases, prenups can nonetheless be expected to be followed provided that a variety of different requirements have been met.
Agreements.co.uk recommeds that, for maximum financial protection, a couple should take out a pre-nuptial agreement immediately prior to marriage and then update it to a post-nuptial agreement whilst married, thereby sending out the clearest message that both partners wish their respective finances to be dealt with separately.
The Government has already signalled its willingness to boost the legal status of pre-nuptial agreements, and the courts are now falling into line with public opinion and are publishing judgments in favour of prenups. Provided your prenup is entirely consensual, and is fair and reasonable in all the circumstances then there is no reason why your wishes, as expressed in your agreement, should not be followed.
Then there was the Parlour case in which the wife of Ray Parlour, the former Arsenal striker, appealed against a settlement that many might have considered generous. The upshot of the appeal struck fear into the hearts of the asset-rich across England. Not only was she entitled to enough cash to meet her needs, she was also entitled to a share of Mr. Parlour's future earnings for the following four years.
Not only this, Mrs. Parlour was awarded a share of Mr. Parlour's income based, not on her actual needs, but upon available assets, both present and future, irrespective of actual needs or current lifestyle. Such decisions were later echoed in the conjoined House of Lords appeal of Miller and McFarlane in 2006.
Such decisions led to a flood of enquiries at Agreements.co.uk, prompting us to launch two separate divisions, Prenuptial.Agreements.co.uk and Postnuptial.Agreements.co.uk involved exclusively in the drafting of financially-based family law agreements. Our agreements aren't for the super rich, but for ordinary people with good jobs, their own flat or house and some savings tucked away. We now produce more prenuptial agreements than any other, and continue our policy of offering these agrements at around one third of the cost of most family law solicitors.
Just out of interest, here are some of the more notable divorce settlements
(who weren't clients):
| Paloma Picasso and Rafael Lopez-Cambil (1999) |
£250m |
| John Charman, insurance, and Beverley (2006) | £48m |
| Martin Sorrell, advertising, and Sandra (2005) | £30m |
| Aga Khan and Sally Croker-Poole (1995) | £30m |
| Phil Collins, singer, and Jill (1994) | £25m |
| Paul McCartney and Heather Mills (2008) | £24m |
| Prince and Princess of Wales (1996) | £17.5m |
| Terence Conran, designer, and Caroline (1996) | £10.5m |
| Mick Jagger and Jerry Hall (1999) | £10m |
| and abroad: | |
| Sumner Redstone, head of Viacom, and Phyllis (2002) | £1 billion |
| Adnan Khashoggi, former arms dealer, and Soraya (1982) | £500m |
| Jack Welch of GE and Jane (2003) | £100m |
| Michael Jordan, basketball player, and Juanita (2003) | £84m |
| Neil Diamond and Marcia Murphey (1996) | £75m |
| Steven Spielberg and Amy Irving (1989) | £70m |
If you would like to further information on what's involved in having a prenup or postnup, please check out www.Prenuptial.Agreements.co.uk or www.Postnuptial.Agreements.co.uk or telephone Mark Andrew LL.B (Hons.) on 020 7193 1112 with any specific enquiries about your financial position within marriage.
