Russian's ex-wife has "unfair" post-nup struck out

23 January 2012

The England & Wales High Court has overridden a post-nuptial agreement made between Russian businessman Boris Agrest and Janna Kremen, on the grounds that the agreement was "grossly unfair" on her.

The two had signed the marital agreement in Israel in 2001, ten years after their marriage (although Mr. Agrest claims that the marriage ceremony was invalid). It limited the former Mrs Agrest's entitlement to a maximum of $1 million - about GBP1 million.

But last week Mostyn J decided she had not entered into the agreement with a full appreciation of its implications. "While [she] would have understood the literal words of the agreement she did not know what rights under English law she was foregoing by the agreement", he said in the judgement. "Her agreement was therefore not an informed one [and] it would be grossly unfair to hold her to an agreement which deprived her of her fair share of a fortune".

Instead he awarded her a capital sum of GBP12.5 million. This, he calculated, was what she required to meet her reasonable needs and those of her children, who are at various prestigious private schools and universities. The sum represents GBP8.3 million in maintenance and a GBP4.2 million share of Mr. Agrest's assets.

The ancillary relief litigation, which probably still has some way to run, has been long and complex. In February last year, the EWHC set aside as a sham two property disposals made by Mr. Kremen while the relief proceedings were under way.

Ms Kremen now has to obtain possession of the assets she has been awarded. Most of them are held in offshore trusts - if they exist at all, which Mr. Agrest denies. Mostyn J noted that there have been already a number of judicial findings that Mr. Agrest is "a serious and serial non-discloser who is determined to do down his [ex] wife by foul means".

Mr. Agrest did not attend the hearing, pleading poverty, and was represented by a McKenzie Friend. He is also facing litigation from two former business contacts, including a demand for $10 million to settle an alleged debt.

 

Sources

 

Telegraph

BAILII

 


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