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RADMACHER V GRANATINO

We acted for Mr Granatino in this groundbreaking case that changed the way the English Courts look at pre-nuptial agreements.

Prior to this case it was often said that pre-nuptial agreements were not worth the paper they were written on and it was argued that they were contrary to public policy – by encouraging divorce.  Pre-nups were not enforceable in English Law and the courts would not uphold them.  This case brought about a sea change in the court’s approach.  Ms Radmacher was a German heiress who married Mr Granatino, a French banker.  They married in London after signing a pre-nuptial agreement in Germany three months earlier.  The pre-nuptial agreement provided that in the event of a divorce neither of them would benefit from the property of the other.  They separated after 8 years of marriage at which point Mr Granatino had left banking and was working as an academic earning £30,000 per annum.  He applied to the courts for financial relief from Ms Radmacher.  At first instance, the court awarded him £5,560,000 to enable him to buy two homes and to provide him with capitalised income for life.  The court looked at the pre-nuptial agreement but considered it of diminished importance, particularly as Mr Granatino had not had legal advice on the agreement.  Ms Rachmacher appealed the decision and said that the pre-nup should be given decisive weight.  She was successful in her appeal and Mr Granatino then appealed to the Supreme Court.  His appeal was unsuccessful and the pre-nup was given “magnetic importance”.  Whilst a pre-nup will not be automatically upheld, (statute would need to be changed for this), following this decision unless it can be shown that the process by which the agreement was created or the outcome is unfair then they should be held to it.  This decision brought the UK much closer in line with Europe and America where such agreements have been commonplace for many years.