Getting a separation agreement like Bill and Melinda Gates
- Describe how separation agreements work
- Identify the advantages of separation agreements
- Describe the courts' approach to separation agreements
- Describe how separation agreements work
- Identify the advantages of separation agreements
- Describe the courts' approach to separation agreements
Bill and Melinda Gates recently announced their separation after twenty seven years of marriage.
This divorce is notable for two reasons, firstly because Bill Gates is listed as the fourth wealthiest man in the world (at $124 billion).
Secondly, because unlike many divorces of the rich and famous that we have seen recently, they have resolved the related financial remedy proceedings discreetly and consensually with the assistance of their lawyers in a separation agreement.
Separating high net worth couples in England and Wales can learn some lessons from the Gates divorce, despite the difference in jurisdictionBill and Melinda Gates reside in Seattle, in the USA. The media in the US have accessed the divorce petition, which states that ‘this marriage is irretrievably broken down’, but are unable to access the separation agreement.
The children of the couple are now grown up and there are clearly sufficient funds for the spousal support not to be required. Therefore, it is simply a question of dividing up their fortune.
Other separating high net worth couples in England and Wales can learn some lessons from the Gates divorce, despite the difference in jurisdiction.
High net worth couples in this jurisdiction, like in the US, are able to enter in a separation agreement.
Separation agreements in the UK
The law as to the status of agreements in England and Wales is the same whether it relates to a pre-nuptial agreement (before marriage) or a post-nuptial agreement (separation agreement).
While pre-nuptial agreements have pierced the cultural consciousness through the mediums of television and celebrity gossip columns, separation agreements are not so well known. Nevertheless, they can prove to be effective in the right set of circumstances.
The important point to remember is that no agreement can totally oust the jurisdiction of the court in England and Wales. Our courts will always retain jurisdiction to ensure that agreements are fair. The key principle is that: "The court should give effect to a nuptial 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."
According to the Supreme Court, in Radmacher (formerly Granatino) v Granatino [2010] UKSC 42 (https://www.bailii.org/uk/cases/UKSC/2010/42.html ).
When considering what weight the court will attach to any agreement, the court will take into account:
