A Family Law expert is warning against signing prenuptial or postnuptial agreements unless people fully understand the potential consequences of doing so.
Elizabeth Gallagher, head of the family team at Macks Solicitors, made the comments after a High Court judge dismissed a woman’s claim that she was coerced by her husband into signing a postnuptial agreement.
Caroline Hopkins, 62, claimed her husband bullied her into signing the agreement even though divorce lawyers advised against it.
She said she agreed to the arrangement, understood to have been made after their relationship had broken down, because she wanted to remain on good terms with her ex-husband, as they had a child together.
The agreement gave her a 50 per cent share of 66-year-old William Hopkins’ £200,000 pension, the family home and an investment property. He is said to be worth £38m.
Mrs Hopkins argued the agreement was invalid because she was pressurised and went to court seeking a further £2m to cover legal fees and future needs.
The judge ordered Mr Hopkins to pay her £200,000, but believed she had dramatised events. He was satisfied the husband had done nothing to prevent her making a free decision. He also said she had received sufficient legal advice before signing the document.
Although these contracts are theoretically not legally binding, the decision underlines that if certain conditions are satisfied, they will be effectively enforced by the courts.
Elizabeth said: “Prenuptial and postnuptial agreements are often suggested by the party who is in the better financial position, with the intention of trying to ring-fence assets in the event of a divorce. “They are not legally binding per se, but if certain conditions are satisfied recent case law suggests that they will be up held in the event that a party seeks to challenge the contents in a court of law.
“It is often very difficult to advise clients about signing such agreements, as we do not have a crystal ball and cannot foresee what each party’s circumstances are going to be in the future, or what external circumstances may influence the situation. “In this case, my understanding is that Mrs Hopkins was advised not to sign the agreement by her solicitor, but went ahead and signed it. “Despite her asserting she was coerced by her husband into signing the agreement, she was unable to convince a judge of this, so the agreement was upheld.
“Because of the uncertainty surrounding such agreements, my advice usually is that a prenuptial or postnuptial agreement should be not be signed unless the party signing intends to be bound by the contents of the agreement and fully understands the implications.”
In contrast to a pre-nuptial agreement, which is signed before marriage, a post-nuptial agreement is made after a marriage or civil partnership has taken place.
Macks’ divorce lawyers in Darlington are experienced in all areas of divorce and separation. Our divorce solicitors have a sympathetic and pragmatic approach to the legal process and aim to keep clients’ disputes away from court where possible. If you wish to arrange a consultation with a family lawyer about your divorce or separation, our family law solicitors in Darlington can be contacted on 01325 389 800.
