How Pre-Nuptial Agreements Protect Generational Wealth in the event of Divorce

January 25, 2024
Siddique Patel

Partner

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This article originally featured in The Telegraph on the 20th January 2024.

Pre-Nuptial Agreements (Pre-nups) can be used by both parties either before or after marriage to ringfence assets which may normally be considered for distribution upon divorce.  Since the landmark case of Radmacher v Granatino [2010 UKSC 42], where the Supreme Court enforced a Pre-nup made between two foreign nationals in Germany and significantly reduced the financial provision ordered by the High Court, a Pre-nup can be given favourable weight by the court in England and Wales despite the main statutory piece of legislation that is used when considering distribution of matrimonial assets upon divorce, provided it is fair to all parties in all the circumstances prevailing.

A Pre-nup can provide clarity, certainty and transparency. It can also givethe freedom to agree your own terms, plus protection of assets, family members and business partners.

Although not always easy upon the happy occasion of marriage, experience has shown that it is sensible for families to give strategic consideration to the important issue of protection of generational wealth and legacies for the future.

We act for parties and families to do just that, taking steps to protect the legacy of the hard work of previous generations so that future generations are not encumbered by the advent of a divorce within the family.

A Pre-nup can also be used to provide more bespoke practicalities we encounter for clients with a connection to the Middle East, including: specifying the nature of gifts and dowry; the issue of  marriage sensibilities in the Middle East; and the specifics of the divorce and marriage procedure.

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