Pre-nuptial agreements have been given new status after the Supreme Court ruled in favour of heiress Katrin Radmacher.

Her husband Nicolas Granatino, took his case to the highest court in the land, after appeal judges slashed his divorce settlement from more than £5m to £1m.

The German heiress is said to be worth more than £100 million.

Appeal judges had ruled that "decisive weight" should be given to the agreement signed before he married that he would make no claims on Katrin Radmacher's fortune.

The justices dismissed the appeal by a majority of eight to one, saying " it will be natural to infer that parties entering into agreements will intend that effect be given to them."

But they still agreed that in the right case a pre-nup agreement can have weight.

Lord Phillips, president of the Supreme Court, said the courts would still have the discretion to waive any deal, especially when it was unfair to any children of the marriage.

The case is seen by lawyers as the ultimate test of whether the agreements are applicable in English law.

Katrin Radmacher, who was present for the ruling, said afterwards: "I am really pleased with the ruling but saddened at the four-year process that brought us to this point. I am delighted that Britain has upheld fairness. It is important to me that no-one else should have to go through this."