When a Prenuptial Agreement collides with bankruptcy, what is a fair outcome in a family law court?
The recent case of S v H [2020] EWFC B16 has given all family law practitioners a chance to re-assess prenuptial agreements. This includes considering what is fair and just in light of divorce or separation, particularly when one client/party may become bankrupt or insolvent.
Usually at court, in arbitration, an FDR or mediation, the emphasis is on meeting the needs of the parties involved. The agreement or decision must be fair, workable and binding.
In the case of S v H [2020] EWFC B16, two clients, a husband and wife, were divorcing. They had both signed a prenuptial agreement which provided for a separation of property.
In this case the wife had sought the full range of financial relief in her application. However the husband had since become bankrupt. The husband’s needs meant the prenuptial agreement would be unfair.
Although this case was complex, many points can be learnt. It underlines to us all the prenuptial agreements are not simple and a range of factors, including all clients being aware of the implications, must be considered to ensure a fair outcome.
You can read the full breakdown of the case on Class Legal, written by Lucy Swinton, a Solicitor.