The Supreme Court
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Pre-nup agreements given new status by Supreme Court

20 October 2010 Last updated at 11:11 BST

The UK Supreme Court has ruled that a pre-nuptial agreement is binding in the case of a German paper company heiress.

Katrin Radmacher's ex-husband Nicolas Granatino went to the Supreme Court after appeal judges slashed his divorce settlement from more than £5m to £1m.

The Supreme Court said it agreed that in the right case such agreements can have decisive or compelling weight.

This landmark ruling will have major implications in financial agreements entered into before marriage.

The president of the Supreme Court is Lord Phillips.