As Brad Pitt and Jennifer Aniston sever their ties with a multi-million pound divorce settlement, Jane Hall looks at how to ease the financial parting of the ways. Former Hollywood golden couple Brad Pitt and Jennifer Aniston have finally decided who gets what - a year after she filed for divorce. Reports suggest the former Friends star will remain the sole owner of their £16.6m Beverly Hills mansion, while Brad - now in a relationship with actress Angelina Jolie - apparently gets control of the couple's lucrative film company, Plan B Productions, with Jennifer retaining only a "minor stake". Brad and Jennifer's multi-million pound agreement may seem a thousand miles away from the divorce settlements reached by couples in the North-East. For one thing their huge wealth and enviable lifestyle sets them apart. But their reported acrimonious arguments about who kept what are sadly familiar. A generation ago, a typical couple shared a bank account and probably had joint savings or an endowment policy. However, times have changed. Now they have a multitude of financial products. And even unravelling arrangements such as joint bank accounts and credit cards can be fraught with bureaucratic frustrations. Unusually for a Hollywood couple, Jennifer and Brad had decided not to enter into a pre-nuptial agreement. But Lyn Ayrton, head of family law at Newcastle-based Watson Burton, says: "Their short, childless marriage is an ideal example of when such a contract would have been of benefit to both parties. Without it, the resulting reported settlement certainly appears less than equal - Jennifer kept the house and Brad retained the film company." Pre-nuptial agreements were once seen as the territory of celebrities rather than `ordinary folk'. But they are becoming increasingly more acceptable to couples who would rather calmly agree in advance what will happen to existing assets, than risk the prospect, however unlikely, of emotionally-fuelled arguments following a breakdown of their relationship. It is often the dividing up of spoils which causes the most conflict. What most couples, and women in particular, do not realise is that, if a break-up turns sour, they have much more to lose than they think. While many career-orientated women are now wise enough to maintain a degree of financial independence to avoid a cash crisis should divorce rear its ugly head, for others it can be a doubly traumatic time. Pensions are probably the biggest area of contention. The financial implications of caring for any children and the problems of sorting out a mortgage also weigh against women. As a result, it is usually found that, even if a couple stays together, the woman in her own right is financially worse off than the man. Over her working life a woman will have been a lower earner, or may have earned nothing at all and will have to rely on what she can obtain from her husband. In 2004, the number of divorces rose by 0.2% to 167,116 - the highest since 1996, according to official figures. The average age for people divorcing is also higher, rising from 39 to 42 for men and from 36 to 40 for women. But despite the high possibility of breaking up - 3,200 couples divorce each week - few are prepared for the financial devastation that results, not least the legal bills which can range from £8,000 to £30,000. Then there are the other financial implications as shared resources have to stretch to two homes, two pensions, two cars - in short two lifestyles. The home is usually at the centre of any financial carve-up, with the other largest asset, the pension, often being neglected. Karen Ritchie, founder of Financial Planning for Women, a divorce and family finance specialist based in London, says: "In the frenzy to make a clean break, couples might overlook pensions, often the biggest asset after the family home. In this respect, it is usually women who lose out." Alternatively, settlements are arranged so that the woman is given a bigger share of the family home with the man retaining his pension. This is despite the fact that the law allows ex-wives a share of the pension. Karen continues: "This trend is borne out by figures that show that in the 167,116 divorces in 2004, only 3,174 involved pension-sharing. "I believe there is a combination of reasons behind this, including solicitors not advising clients that pensions can be split between the couple to form part of the settlement. "Also, wives are more confident in dealing with property than with pension funds. And there is the issue of husbands being unwilling to consider giving up part of their pension." It is in such cases that a pre-nuptial agreement could be of benefit. For it is a sad fact of life that romance takes a back seat when money is an issue. Though not legally binding in the UK, pre-nuptial contracts are nevertheless likely to be taken into account by the divorce courts. Lyn Ayrton of Watson Burton says: "In the UK, family law courts are increasingly taking pre-nuptial agreements into account when reaching their decisions. "The agreements themselves take a good deal of planning and, to have a hope of being enforceable at a later date, require a visit to see a solicitor, which in the run-up to the romance of a marriage goes against the grain for many couples. They can, however, save time, money and temper if and when needed." Brad and Jennifer's settlement was reached using the `community of property' regime adopted by California. Its principles mean that each party keeps what he or she brought into the marriage, and equally divides assets built up during its time. But what one person regards as `equal' or even `fair' may be seen as grossly unfair by the other. Lyn says: "A current court case being appealed before the law lords in London highlights the vexed question of what is a fair distribution of wealth. The couple in question, Mr and Mrs Miller, were ending a marriage even shorter than Brad and Jennifer's - less than three years. "It was a childless marriage, at the end of which Mrs Miller was only 35 years old. "Mr Miller was worth £17.5m, much of which he had accrued before he met his ex-wife. Before the marriage Mrs Miller had lived in modest rented accommodation and had been earning £85,000. "Mr Miller offered his wife a £1.3m lump sum. However, in awarding Mrs Miller £5m, the High Court judge considered that by the marriage Mr Miller had given Mrs Miller a legitimate expectation that her life would be on `a higher economic plane'. "The award aimed to allow Mrs Miller to retain the family home, worth £2.3m, and have a fund that would produce £98,000 per annum for life. "The judge considered that by pursuing a relationship with another woman, Mr Miller was largely responsible for the breakdown of the marriage, and consequently its brevity. "Suddenly it appeared that the notion of blame - that most lawyers strive to persuade their clients has no place in financial negotiations - had been actively introduced as a legitimate consideration. "Mr Miller is vehemently appealing the award made to his former wife." Lyn continues: "Separation and divorce are rarely easy times for the people involved. The millionaires may hit the headlines, but the issue of defining fairness and equality when dividing a domestic life affects every couple heading to family law courts." There are two types of pre-nuptial agreement which can be entered into prior to marriage and are used to deal with a couple's assets should their union end. The first allows individuals to keep whatever possessions they had before they married. The second, and more complicated, allows a couple to set out specific terms, such as payments for every year of the relationship. But beware. The longer a marriage lasts, the less influence a pre-nuptial contract will have on a judge's decision. And if children are involved, expect the agreement to hold little or no sway. That aside, one of the most useful side-effects of negotiating a contract is that each partner learns far more about the other's attitude to money - and they potentially save themselves future heartache. Protect yourself during a divorce * Change your will as soon as you begin proceedings in case you die before the divorce is finalised. * Find a suitable solicitor. Contact Resolution (formerly known as the Solicitors' Family Law Association) for one in your area on (01689) 820-272 or go to www.sfla.org.uk * Value everything, including pensions, property and investments - even the car. Take photocopies of important financial documents to your solicitor. * Cancel joint credit/debit cards to avoid rows later. * Ask your mortgage lender for a redemption statement. * Arrange an enduring power of attorney so that someone can act on your behalf if you become incapable. * If a pension is split, it must be in the form of a pension and not a cash settlement. The woman's share is called a `pension credit' and supplements her pension. Women with a pension plan should check that an ex-spouse is no longer entitled to death benefits from it. Making pre-nuptial contracts TO make a pre-nuptial contract as watertight as possible, couples - including those entering civil partnership arrangements - should bear in mind the following points: * Both partners must seek independent legal advice on the contract, preferably three months or more before the wedding. Less than that and the court might view it as a shotgun deal and throw it out. * Couples must declare their assets. * If children are involved, expect the judge to put their interests first and ignore the contract. * If the document appears to be less fair on one partner than the other, it will be rejected. I was lucky - often women come off worse "It didn't work out, which was really sad, but we knew we had to get on with our lives." So says Kim Addavide, 48, about the end of her 29-year marriage to Leon. With their two daughters - Katy, 22, and Suzanne, 19 - both on the verge of leaving home, the couple realised they had grown apart. So they took the difficult decision to go their separate ways and finally divorced last November. Thanks to their grown-up attitude to the situation, not only has their divorce been amicable but so has the splitting of the assets they built up over nearly three decades of marriage. "We split everything straight down the middle," says Kim. "We had to sell the family home, and now we have our own houses. We are still on good terms and neither of us thinks we have been cheated. "We never fought about who got what. Our objective was to sort everything out so that everybody came out of the divorce with a sense of fairness and dignity. It is just appalling the situation some people find themselves in." Kim should know. An independent financial adviser who runs her own company, AYP Financial Ltd based in Hexham, Northumberland, she counts among her clients many divorcees. "My situation is not typical. Some people feel they have to fight over everything to the last cup. "It is generally women who come off worse. I am lucky that I have the ability to maintain myself financially, but many women are not in a position to maintain a career following divorce. The older you are, the options of starting a new career are very remote." Kim is in favour of pre-nuptial agreements for second marriages. "I think such an agreement would be prudent for older couples who are bringing their own money into a relationship, for the obvious reason to protect their assets for their own family." | 
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