Ready to say “I do” again but not to risk losing your assets if it all turns ugly? Neasa MacErlean finds out how.

Second time around
Look after your assets
If you are married: Are pre-nups worth the hassle? / Trust documents / Making a will / Pledging property / Shares, investments and other assets
If you are cohabiting: Cohabitation agreements / Protecting your property / Inheritance tax
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The current state of divorce law in Britain means that, if you’re wealthy, you potentially have a lot to lose if your marriage takes a turn for the worst.
The landmark case of Melissa Miller is enough to make any wealthy spouse with a less than perfect marriage break into a cold sweat. The 36-year old woman, who was married to Alan (a fund manager) for just three years, received one sixth of her millionaire husband’s fortune – that’s £4,935.83 a day, to be precise. The couple had no children.
The ruling threw the legal profession into debate. Are judges are hammering wealthy spouses simply so their ex partner’s can sustain a lavish lifestyle, or is it a triumph for equality? For the non-working homemaker or main child carer who might have sacrificed a career for the sake of their home life, it was finally recognition that they had as much right to the family wealth as his or her career-driven spouse.
Whichever way you fall on the debate, rumour has it that some lawyers are advising wealthy clients not to marry, rather than risk losing it all if their relationship turns sour. But is it right that, if you are financially successful, you have to seriously consider whether marriage is worth the risk? So much for falling head over heels in love, eh? 

Second time around
It is not surprising that people who have been through a divorce tend to be more hardheaded about keeping their finances separate to that of their partner. But while 41 per cent of marriages overall end up in divorce, data from the Office of National Statistics suggests this figure can rise to more than 60 per cent in second marriages. With just one per cent of Brits signing a prenup it seems most of us haven’t learnt our lesson.
“Anyone who is seriously worried about losing their assets should be dealing with it soon after their divorce, not on the eve of a second or third marriage,” says Lisa Lustigman, a family lawyer at Withers Solicitors.
If you are considering getting married again, or going through with a civil partnership, how can you organise your assets so they are protected?

Look after your assets
IF YOU ARE MARRIED…
Currently, the law states that all assets that are jointly and separately owned are up for grabs on divorce. This includes pension rights, investments, shares, cars, antiques and property such as the family home.
If there are not enough assets available for both parties to live comfortably after they have been divided, a judge might split them according to each individual’s day-to-day living needs if he or she believes this will help. This is especially true if there are children involved – hence it is common for the carer (which is usually the mother) to be awarded a greater value of assets.
“If there is plenty of money to go round, then there is less of a problem,” says Andrew Perryman of law firm Moore & Blatch. “But if there isn’t, then the situation is more difficult because a district judge is not going to leave people homeless.”
In divorces where there is more than enough money to take care of the needs of both parties, the courts are moving towards a division based on equality even in short, childless marriages (as proven in the case of Melissa Miller).
If you have an amicable divorce, of course, you can make whatever division you wish regarding splitting assets, with the help of mediation or collaborative law.

Are pre-nups worth the hassle?
Making a pre-nuptial agreement is advisable for people who have high value assets. A pre-nup needs to be drawn up carefully with the help of a lawyer and a court could disregard it on many grounds (for example, if one party did not take independent legal advice before signing or even if it was signed too close to the marriage date).
But if a pre-nup stated each party’s assets at the time of marriage and what should happen to those assets upon divorce (for example, that each party should retain their own assets) then a court could well use this as a starting point.
“Increasingly, in a lot of second marriages, people are drawing up pre-nuptial agreements,” says Perryman. “Often they have got some money from their first marriage and they are trying to ring-fence these assets from the first marriage.” For more information read our article on Pre-nups – the basics.

Trust documents
People who are remarrying sometimes choose to set up a trust document pledging assets to children, if you have any, or other family members.  Much like a pre-nup, you shouldn’t organise one too close to the date of your wedding as the court could disregard it if it believes the contract was drawn up as a last-ditch attempt to divert money away from a spouse if it all goes wrong.
“Anything that looks as if it is being done to keep things out of the clutches of the other spouse can be torn up by a judge,” explains Perryman.

Making a will
Wills are vital, especially if you have children from previous relationships who you want to inherit your wealth. You may also be able to reduce the amount of inheritance tax that is deducted (from estates over £285,000 in the 2006/07 fiscal year) by seeking specialist advice (browse our services directory).