By Judith O’Brien, Partner – Family Law
The recent Court of Appeal decision in Helliwell v Entwistle serves as a clear warning about the importance of honesty when entering into a pre-nuptial agreement.
In this case, the couple signed their pre-nuptial agreement on the day of their wedding. The agreement stated that, if the marriage were to end, each party would leave with what they had brought into the marriage. For such an agreement to stand, it must set out what each party owns and what they wish to keep separate.
During later divorce proceedings, the court initially upheld the agreement. However, the husband appealed after discovering that his wife had not disclosed all of her assets at the time the agreement was signed. While she had declared assets worth £18 million, she failed to reveal an additional £42–52 million – meaning she had only disclosed around 27% of her true wealth.
The husband argued this was a case of fraudulent non-disclosure, and the Court of Appeal agreed. The matter will now return to court for a fresh assessment of the husband’s needs. In the meantime, the wife has been ordered to pay a significant costs award.
This case is a stark reminder that, regardless of the level of wealth involved, both parties must provide full and accurate disclosure when entering into a pre-nuptial or post-nuptial agreement. Failure to do so risks the agreement being set aside.
If you would like expert advice on pre-nuptial or post-nuptial agreements, please contact Judith O’Brien, Partner in our Family Law team.
Email: Judith.OBrien@prosperitylaw.com
Phone: 0161 464 9706 / 07342 748169
Glossary of Terms
- Pre-Nuptial Agreement (Pre-Nup) – A legal agreement made before marriage setting out how assets will be divided if the marriage ends
- Post-Nuptial Agreement (Post-Nup) – A similar agreement made after marriage
- Disclosure – The process of revealing all relevant financial information to the other party
- Fraudulent Non-Disclosure – Intentionally withholding financial information to mislead the other party
- Costs Order – A court order requiring one party to pay the legal costs of the other
