Pre-nuptials - For Richer for Poorer

Summary

The long awaited decision in Radmacher v Granatino 2010 UKSC 42 handed down by The Supreme Court on 20 October 2010 is very important reading for anyone about to get married (and their advisors), those who already hold a pre-nuptial agreement, and those currently considering inheritance tax planning.

Background

When dividing assets on divorce, the English (and Welsh) courts operate a discretionary system. As a result, litigated outcomes are uncertain, potentially divisive and very expensive in terms of legal costs. The system is generally seen as advantageous to the spouse who did not create the wealth in the relationship, and levels of maintenance payments are very generous when compared with many other European countries.