Post-nuptial agreements must be fair

A couple can make a marital property agreement at any time during the life of their relationship. Generally, family law solicitors are approached before a wedding so that a pre-nuptial agreement can be drawn up to protect finances, assets and certain items of property in the event of a divorce. However, a post-nuptial agreement can be negotiated after a couple marries and these documents can be especially useful if the financial circumstances of the couple change or an inheritance is received, for example.

Post-nuptial agreements must adhere to the same principles as a pre-nuptial agreement:

  • Both parties must seek independent, appropriate legal advice.

  • Both parties must understand the agreement, especially if one party stands to lose more in financial terms as a result of the agreement.

  • Neither party should be coerced into signing the agreement.

  • The financial disclosure of both parties must be full and frank.

  • If the agreement is to be upheld it must not cause injustice to either party or their dependants.

In cases where these guidelines are not followed, a court may seek to dismiss the post-nuptial agreement.

Kremen v Agrest in the High Court

In January 2011 an appeal case was heard in the High Court between a wealthy Russian Financier, Boris Agrest, and his former wife, Jenna Kremen.

The couple had entered into a post-nuptial agreement ten years after they were married, with the reported effect that the wife's financial claims upon divorce would be limited to £970,000.

Ms Kremen was awarded a lump sum of £12.5 million, with £8.3 million of that amount stipulated as maintenance.

In considering the complex and long-running divorce financial settlement case, the judge concluded that:

i) The wife had not entered freely into the agreement and she had not fully appreciated its implications. It was the product of pressure from her then-husband and there had been a severe lack of independent legal advice and disclosure.

ii) Plus, it was doubtful that the parties ever actually intended that the agreement should fully govern the financial consequences of divorce.

iii) It would be grossly unfair to hold Ms Kremen to an agreement which deprived her of her fair share of a fortune which she had, in her own way, equally contributed to the formation of.

iv) Moreover, at the time of divorce the agreement did not remotely meet Ms Kremen's reasonable needs, as it hadn't even at the time of signing.

v) Further, the agreement grossly prejudiced the needs of the children.

George Ide family lawyers in Chichester for post-nuptial agreements

Should you decide that your situation requires the drawing up of a marital property agreement, the experienced family law team at George Ide will be happy to offer advice, guidance and, ultimately, the drafting of a suitable document.

We have many years' experience in advising couples on the financial implications of divorce and treat each situation with sensitivity and professional understanding.

To talk to a family lawyer in Bognor Regis or Chichester please use the contact details provided in our solicitor profiles featured on this page.

Contact
Partner, Family and Matrimonial Litigation, Landlord & Tenant Disputes
01243 833140

Office:

Belmont Lodge
Belmont Street
Bognor Regis
West Sussex
PO21 1LE
Contact
Senior Partner, Clinical Negligence, Employment Law, Family Law
01243 831302

Office:

Lion House
79 St Pancras
Chichester
West Sussex
PO19 4NL