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Disclosure in pre-nuptial agreements – full and frank, or fraudulent?
Charlotte Daintith
There has been a gradual but significant change in approach in England since the Radmacher case was heard in the Supreme Court in 2010. That case determined that the court should give effect to an agreement that is “freely entered into by each party with a full appreciation of its implications unless, in the circumstances prevailing, it would not be fair to hold the parties to their agreement”.
Back in 2010, my colleague Charlotte Bradley wrote about the European marriage contract being a “different animal” to the English prenuptial agreement in her blog here.
Indeed, the English court continued to treat marriage contracts in a different way to a comprehensive Anglo-Saxon style of prenuptial agreement. In the case of of Y v Y (Financial Remedy: Marriage Contract) [2014] the wife challenged the marriage contract on the basis she did not understand that it would apply on divorce, she believed that it was entered into to protect them from third-party creditors and saw the contract for the first time 2 days before the wedding.
In that case, the judge determined that the non-matrimonial property should be excluded from sharing but the wife received 50% of the matrimonial assets, despite them being held in the husband’s name. This was at odds with the approach that would have been taken in France, where a separation of property regime (“separation de biens”), means that assets acquired by the spouses before and during the marriage remain their sole/personal assets, except if they jointly bought these assets, in which case they are considered as joint/common assets.
Case law has developed again in the last few years, and two recent English reported cases, CMX v EJX [2022] and BI v EN [2024] involved French couples who had signed a separation de biens marriage contract at the start of their married lives. In both cases, the marriage contract was taken into account and therefore limited the financial provision the wife would otherwise have received.
When considering whether to uphold a French marriage contract (i.e. dividing property as it would be in a French divorce), the following factors will be relevant:
These recent cases confirm that the existence of a marriage contract is now a relevant consideration on divorce in England; the Judge’s comments in BI v EN make this clear:
Those who sign marriage contracts must understand that it is a significant step with very important consequences. These contracts will be enforced in France and will not simply be torn up in this jurisdiction”
Whilst the recent cases confirm that there is some alignment as between the cross-channel approaches to marriage contracts, there is still a gulf – in many cases- between the English and the French approach in relation to the meeting of needs. In England, once property has been divided in accordance with the contract, the Judge will go on to consider whether needs have been met. In the case above, the wife received generous provision, including second properties, to enable her to have an appropriate lifestyle and capital base to provide for her appropriately for the rest of her life. The level of assets and lifestyle will be relevant considerations, meaning that the effects of the contract may be mitigated. Compare this approach to the somewhat restricted calculation of the French prestation compensatoire, and it remains the case, currently, that English proceedings may continue to be more generous than the French equivalent.
If you have any questions about the topic of this blog, or you need advice about Anglo-French divorce, please contact Claire Wood or a member of our Anglo French family team.
Claire returned to Kingsley Napley as Legal Director in 2022, having previously worked at the firm from 2008- 2018. Claire is a family lawyer with over 15 years’ experience of advising clients on divorce or separation, financial settlement, prenuptial agreements and the arrangements for children.
The English Channel, La Manche, is only 350 miles long, separating England from France. When looking at divorce principles however, we have historically been oceans apart from France, with significant differences in outcome depending whether the proceedings have taken place in France or in England. French law is based on a civil code, with divorce law applying property regimes to the division of assets, which is often incompatible with the common law, discretionary system in England. In the early years of my Anglo-French practice, French couples living in England were often taken aback to learn that the property regime they chose when they signed their French marriage contract might not be applied by English judges if they divorced in England.
London has long been a popular city for French expats, and despite the reported drop post- Brexit, is still home to a reported 100,000 French nationals many of whom applied for settled status. There are 9 bilingual French schools in London and with the Eurotunnel celebrating 30 years of operation, London remains an attractive residence for French professionals.
I am regularly asked to advise French and international couples on the protective agreements available to them before they marry. They are often surprised to learn that it isn’t possible to draft a global prenuptial agreement which would be enforceable throughout the world, wherever the couple move to in the future.
Le Pacte Civil de Solidarité (PACS) est un contrat conclu entre deux adultes non mariées, de même sexe ou de sexe opposé, qui leur permet d'organiser leur vie commune. L'enregistrement de l'union civile entre les conjoints se fait à la mairie. Le contrat de PACS peut également être rédigé par un notaire afin que les clauses de leur contrat soient adaptées à leur situation familiale et financière.
The importance of inheritance planning cannot be underestimated – failure to consider the succession and tax consequences that arise on the death of a spouse can lead to significant financial implications, at a time when emotions could already be running at an all-time high. Particularly in situations where there is a large amount of familial wealth, the earlier this is considered, the better, and marriage (and the election or not of a matrimonial regime, or creation of a bespoke nuptial agreement) is a good time to take stock and ensure your family is protected for the future.
The concept of matrimonial regimes has become increasingly well known in England, having been a stalwart of the French marriage process for centuries. International clients and those with Anglo French connections are asking the right questions about French marriage contracts versus English prenuptial or postnuptial agreements more frequently, being more aware of the significant differences between the two and also the need for cross-border legal advice to ensure their interests are protected should they later choose to divorce.
The French Pacte Civil de Solidarité (PACS) is a contract entered into by two unmarried adults, of the same or opposite sex, which allows them to plan their life together. Registration of the civil union between the partners takes place at the town hall. The PACS contract can also be drafted by a notary so that the clauses of their contract are bespoke to their family and financial situation.
The question of whether to seek a divorce is one over which many people agonise. However, for divorcing couples with international connections, the associated questions of when and in which country to get divorced are also extremely important considerations, and ones which can have serious repercussions for the outcome.
Les couples français vivant en Angleterre sont souvent surpris d'apprendre que le régime matrimonial français qu'ils ont choisi lors de la signature de leur contrat de mariage français pourrait ne pas être appliqué par les juges anglais s'ils divorcent en Angleterre.
French couples living in England are often taken aback to learn that the French matrimonial regime they chose when they signed their French marriage contract might not be applied by English judges if they divorce in England.
Cela me rappelle le tableau du "Jugement de Paris", qui décrit le moment où d'éminents critiques de vin français, lors d'un test de dégustation, se sont rendus compte qu'ils avaient mieux classé les vins californiens que les vins français.
La requête en divorce a été déposée. L’on peut à présent se concentrer sur l’un des deux autres éléments essentiels d’une séparation, à savoir l’aspect financier. La procédure sur les mesures financières et la décision finale sont un facteur décisif dans le choix du lieu du divorce. De nombreux clients supposent que les procédures en Angleterre et en France sont similaires. Cela n’est pourtant pas le cas.
The divorce petition has been lodged. The focus can now switch to the two other key components of a separation, of which one is the finances. The process of applying for a financial order, and what order is made at the end, will be an important factor in deciding where to divorce. Many clients assume that processes in England and in France are largely similar. However, this is not the case. In this blog, we summarise the key stages in both French and English financial order applications, including the application, supporting information, hearings, criteria and available orders.
Misconceptions and myths are commonplace in the world of cross border divorce. I am reminded of the “Judgment of Paris” painting, depicting the moment when a panel of eminent French wine critics, in a taste test, discovered they had ranked Californian wines higher than French.
On me demande régulièrement de conseiller des couples français et internationaux sur les contrats de protection qui peuvent être établis avant le mariage et sur la nécessité de rédiger un contrat anglais ou français. Ils sont souvent surpris d'apprendre qu'il n'est pas possible de rédiger un contrat prénuptial mondial qui serait exécutoire dans le monde entier, où qu'ils s'installent à l'avenir. C'est d'autant plus surprenant pour les clients français qui apprennent que leur contrat de mariage de confiance et de routine n'est pas automatiquement applicable dans une procédure de divorce en Angleterre.
I am regularly asked to advise French and international couples on the protective agreements available to them before they marry and whether they need an English or French drafted agreement. They are often surprised to learn that it isn’t possible to draft a global prenuptial agreement which would be enforceable throughout the world, wherever they move to in the future. It is all the more surprising to French clients who learn that their trusted and routine contrat de mariage is not automatically enforceable in divorce proceedings in England.
Despite the wonders of modern technology helping to keep people in touch during the coronavirus pandemic, many separated and divorced parents who live far from their children are finding life very difficult at the moment. In this blog, we look at some of these scenarios and the questions arising at this unprecedented time for separated parents who either wish to relocate or stop the other parent from relocating overseas (international relocation) or to another part of the UK (internal relocation).
Suite aux restrictions annoncées par le gouvernement hier soir imposant que chacun reste chez soi et loin des autres pour aider à gérer la crise du Coronavirus, des informations supplémentaires ont été publiés à propos des restrictions mises en place dans le cadre « confinement », qui confirment que « déplacer des enfants de moins de 18 ans entre les foyers de ses parents » est l’une des situations dans laquelle il est possible de quitter son domicile.
This week’s episode of The Split gave us further insight into the Hansens’ family life with red flags starting to show in respect of Richie’s behaviour towards Fi. Towards the end of the episode, Hannah makes reference to controlling and coercive behaviour – a topic we have previously blogged about here. We will watch to see how that storyline develops and what advice and assistance Hannah is able to provide to Fi to extricate her from what is starting to look like a deeply troubling relationship.
A recent England and Wales High Court case highlights the need to establish connection, particularly where forum shopping is alleged.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
or call +44 (0)20 7814 1200
Charlotte Daintith
Charlotte Daintith
Will MacFarlane
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