Archive for February 24th, 2011

When it comes to the major reasons for moving house, agents often quote the three Ds – death, debt and divorce.
Death is something we can merely put off by easing up on the wrong food, the long drinks, the sedentary lifestyle and the hedonist parties - but enough about me. Debt is always going to hit people with its bullets. But Savills, nothing it not ambitious, wants to take divorce out of the distressed property sale equation.
The biggest news on the marital front in the last few weeks has not been the impending nuptials of HRH Prince William and Kate Middleton, but the divorce of a German heiress Katrin Radmacher and her French husband Nicolas Granatino. The Supreme Court in London effectively recognised pre-nuptial contracts in English law by upholding a ‘pre-nup’ agreement between the couple that the husband would make no claim on his wife’s £100 million fortune.
It is hugely significant case law, aligning the UK with the USA and most of Europe where pre-nuptial contracts are well established. Clive Beer, head of Rural Professional Services at Savills, knows all about the crippling effects of divorce on many landed estates, often called as an expert witness to value the assets when a pot is being divided.
“To the British the idea of a ‘pre-nup’ is about as romantic as Bridget Jones’s knickers. But it has to be seen as a very positive and practical thing to do,” said Beer.
“Pre-nups will give estates more chance of being preserved through generations, rather than assets carved up in bitter divorce proceedings.”
Agents and trustees could be deemed ‘negligent’ if beneficiaries lose out due to divorce and had not at least been advised to sign a pre-nup, which might have ring-fenced the estate’s assets in the event of a divorce claim.
On bended knee with a ring and a contract, and a lawyer and land agent sharing the candlelit dinner, may not go down well with your intended. But, says Beer, simply blame it on the professionals.
“Before you ring the wedding planner, ring the family lawyer. Agents have a duty to establish pre-nups in our culture and make clients aware,” said Beer. It gives a whole new meaning to running a client’s affairs. Also the speed some lawyers work, engagements could last years as the pre-nup contract is re-drafted down to the last acre and chattel.
A pre-nup lists what is not available for distribution in the event of divorce. But circumstances change when a couple has children, so a ‘post-nup’ could follow, keeping pace with expanding families and fluctuating fortunes. Apparently an action group called ‘Golddiggers Against Pre-Nup’ has already been set up.
Of course cynics will cry ‘another fee-making exercise for lawyers’, but a family lawyer with an estate to advise on is unlikely to want succession ruined and presumably lawyers make more from messy, contested divorce cases anyway.
“Do you want to hand over responsibility to a third party judgement at the casino table and take your chances, rather than have a signed agreement to inform the judge?” said Beer.
A pre-nup insists on full disclosure and if your other half is secretive about his Cayman Islands bank account it might not be the best basis for a lifetime of honesty and harmony. A wealthy father of the bride, questioning the motives of the groom, might refuse full disclosure and scupper the marriage.
“It makes sense to have a formula as to how the assets should be treated. It is of huge benefit to the very rich,” added Beer.
The British courts are traditionally generous in settlements against the wealthy party. Family law decrees that a pre-nup is ‘fair’ to all parties. It is going to cramp the style of one divorce lawyer I know, who wins clients by using his business cards as wedding confetti – the old romantic fool.

This article originally appeared in The Field. www.thefield.co.uk

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