Ratio Decidendi
A pre-nuptial agreement that is freely entered into by each party with a full appreciation of its implications should be given decisive weight unless in the circumstances prevailing it would not be fair to hold the parties to their agreement.
Facts
Katrin Radmacher, a German heiress, and Nicolas Granatino signed a pre-nuptial agreement in Germany before their marriage. The agreement provided that neither party would benefit from the other's assets on divorce. After 8 years of marriage and two children, they divorced. Granatino sought a substantial financial award, arguing the pre-nuptial agreement should be disregarded.
Judgment Summary
The Supreme Court (by 8–1) held that the pre-nuptial agreement should be given decisive weight. The court departed from the previous position that pre-nuptial agreements were contrary to public policy. While such agreements cannot be binding in the strict contractual sense (because the court always retains a discretion under the MCA 1973), they should be given effect unless it would be unfair to do so.
Key Quotes
"The court should give effect to a nuptial agreement that is freely entered into by each party with a full appreciation of its implications unless in the circumstances prevailing it would not be fair to hold the parties to their agreement."
— Lord Phillips PSC
Subsequent Treatment
Pre-nuptial and post-nuptial agreements are now regularly given significant weight in financial remedy proceedings.