High profile divorce cases have led to a large increase in the number of couples drawing up pre-nuptial agreements before marrying, according to new research.

A survey carried out by the accountancy firm Grant Thornton found that over the last 12 months, two-thirds of family lawyers throughout the country helped more couples than ever before to decide how their assets should be divided should their relationship break down.

There have been several important cases in the courts recently which have helped establish the principle that assets should be divided equally between a divorcing couple unless there compelling reasons against doing so.

One such reason might be that one partner had made a “special contribution” to the couple’s joint wealth due to some extraordinary talent. This was the case with businessman John Charman. He and his wife Beverley had no significant assets when they married at the age of 23 and 22.

When their marriage broke up 28 years later they had amassed a joint fortune of £131m. The courts allowed to Mr Charman keep 63.5% of this wealth on the basis that it had been built up largely as a result of his extraordinary efforts in his work in the insurance industry.

In spite of being granted the larger share of the couple’s wealth he still contested the £48m award made to his former wife describing it as grotesque. The Appeal Court ruled against him but in doing so it called for a review of the divorce laws.

Sir Mark Potter, who presided over the case with lords justices Thorpe and Wilson, added a postscript to the judgment calling for reform. He urged the Law Commission to examine the issue and consider whether pre-nuptial agreements should be included in new legislation.

At the moment, pre-nuptial agreements are not legally binding but the courts will generally take them into account if they are considered to be fair and properly drawn up. In assessing whether the pre-nuptial agreement should stand, judges will consider such matters as whether both sides fully disclosed all their assets and whether both had access to independent legal advice. 

Couples considering a pre-nup should consult a solicitor to ensure their agreement is properly drawn up and so acceptable to a court if it is ever needed in future.

Subsidised HIPs for first 5,000 applicants

The Government has announced that it will subsidise the cost of Home Information Packs (HIPs) for the first 5,000 homeowners to apply before 1st August.

It has agreed to pay £100 plus VAT towards the cost of an Energy Performance Certificate, the main element of the new packs.

HIPs have had a stormy ride over the last few months. They were due to be introduced in June but the date was postponed following a legal challenge by surveyors who argued there wouldn’t be enough energy assessors to carry out inspections and award energy performance certificates.

The Government compromised and agreed to introduce the new system in phases starting on 1st August when they will be needed for anyone selling a house with four or more bedrooms.

They will be phased in for smaller properties later although no timetable has been announced.

Ministers hope the subsidised Energy Performance Certificates will help get the new system off to a good start, although they may still have a long way to go according to research carried out by ICM.

Only 36% of people questioned had actually heard of Home Information Packs and of those, only one in three knew that they should contain information about a house for sale such as EPCs and the results of local searches.

Trustworthiness was considered the most important quality in a HIP provider. The majority of people said they would be most likely to trust a solicitor to prepare the pack and interpret the information it contained.