The Supreme Court rules Pre–Nuptial Agreements have legal status

The Supreme Court has today made a land mark decision to uphold a pre-nuptial agreement.

Pre-nuptial agreements are made before the marriage takes place and deal with financial provision in the event of the marriage breaking down. This allows a party to separate part of their wealth at the outset of a marriage.

Such agreements have not previously been enforceable in England and Wales, but have often been one of the factors that a Court may have taken into account.

The Supreme Court said that in the right case these agreements can now have decisive or compelling weight. However, courts will retain the discretion to waive any pre or post nuptial agreement, especially if it is unfair to any children of the marriage.

The justices found that it is natural to infer that parties entering into agreements will intend effect be given to them and that the court should give effect to the agreement if it is entered into freely by the parties.

The Law Commission is due to report in 2012 on whether a change in the law should be made to ensure pre-nuptial agreements are fully enforceable.