Millionaire Post-nuptial agreement shunned by High Court Judge

The High Court has awarded the wife of Russian Millionaire, Boris Agrest, a £12.5 million settlement after bitterly fought divorce proceedings.

The case was brought by Miss Kremen after her husband tried to hide assets and fled the UK following the breakdown of his marriage. It has been reported that Mr Agrest apparently stated that he would leave his wife and their three children destitute after they split and that he has refused to pay child maintenance or meet the children’s significant schools fees since the break up.

It has been revealed that Mr Agrest had coerced Miss Kremen into signing a Post Nuptial agreement which restricted the amount she would receive upon divorce, to £969,900. In an effort to protect his substantial fortune, the Judge said that Mr Agrest had forced Miss Kremen into agreeing to a “sham” Post Nuptial agreement.

In his judgement, Mr Justice Mostyn stated, “The wife did not enter into the agreement with a full appreciation of its implications. It would be grossly unfair to hold the wife to an agreement which deprived her of her fair share of a fortune, to the formation of which she has in her own way equally contributed.”

The Judge ignored the terms of the “sham” Post Nuptial agreement and awarded Miss Kremen £8.3 million maintenance plus £4.2 million, which represented her share of the joint fortune.

The deliberate disregard of the Post Nuptial agreement by the Judge in this case highlights the need for both partners to seek independent legal advice before entering into any agreement in connection with matrimonial assets. Pre and Post Nuptial agreements are not strictly binding however, more recently, the Courts have found them persuasive when it comes to deciding how assets of a marriage should be divided. As this case shows, Courts will be less likely to find in accordance with an agreement if a party enters into it under duress or if one or both parties do not fully understand the implications of what they are agreeing to.

If you have assets acquired pre-marriage in your sole name then a Pre Nuptial agreement is recommended. It is advisable to seek legal advice from an experienced family law solicitor before embarking on any agreement with your partner.

If you would like expert advice in relation to a divorce or any other family law matter please contact Colin Davies, Senior Family Partner, on 0844 984 6138.