Financial experts are calling on couples to get their affairs in order before they marry, after City trader Julie Arnold expressed her bitterness at her cheating spouse being awarded half of her £5.45m fortune.
Ms Arnold was married to partner Robin Sharp for four years but had no children, and the couple deliberately kept their finances separate. Ms Arnold was the main earner. Her ex-husband was originally awarded £2.7m for divorce.
She managed to get this cut to nearer £2m - their £1.1m home and a £900.000 lump sum - but said “it was still a lottery win just for being with someone”.
Lawyer Hannah Field, from Russell Cooke, said that family law does not accept behaviour or fault when dividing assets and makes no distinction between short, long and medium marriages.
“It does take into account assets built up during the marriage, ones brought into the marriage or how a couple have structured their finances but sometimes the division may seem unfair to one party if the behaviour of their spouse causes the breakdown of the marriage,” she said.
Ms Field said that a pre or post nuptial agreement could make life simpler.
“Whilst they aren’t legally binding they are given significant weight if they are freely entered into without any pressure or duress and both parties provide financial disclosure,” she said.
"Within the agreement a couple could decide at what point in time they believe there should be equal sharing of assets or which assets should be kept out of any settlement. This may be one way of avoiding disputes like that of the Sharp’s later down the line if the relationship comes to an end.”
Sarah Coles, personal finance analyst at Hargreaves Lansdown agreed. “Pre-nups are not legally binding in the UK, but as long as they are reasonable, properly negotiated, and everyone has been legally represented, the courts are likely to take them into consideration,” she said.
She also urged those thinking about divorce to take the value of all of their assets, including pensions, into consideration.
“In many cases, it’s one of the largest assets built up during the marriage - often largely in the name of one person.”
Couples have a few options on how to split the pension, so it is important to consider the merits of each, she said.
Sophie Kilvert, relationship manager at Seven Investment Management, said that it was important to ensure that both members of a couple take an interest in personal finances, so that they aren’t left out-of-pocket following a divorce.
“Two things stand out to me in divorce cases. Firstly, whilst it’s quite common for one person to be in the driving seat when it comes to family finances, if you are not that person it’s important that you ‘know enough’ in case of a change in circumstances,” she said.
“Not only is it important to be in a position of knowledge about where and how assets are invested when financial settlements are being arranged, it is also important to have a reasonable level of financial literacy for the next chapter in your life.
"A ‘running away fund’ is not a bad idea, either. Even if everything in the garden is rosy, and the money is simply intended to help fund secret gifts and treats, I’ve had clients express relief that they kept some money separate, as it has made it easier to move on.”
