The Law Society has recently reported that family lawyers have observed a notable rise in enquiries regarding pre-nups. I do not think it is a coincidence that this increase coincides with the recent surge in first-time buyers who have reached their highest level since 2007. These two phenomena must be linked.
Indeed, it is clear that wealthy parents are increasingly being called upon to help their adult children to buy properties in their desired area, which they would not otherwise be able to purchase without this financial assistance.
It follows that, if there is a loan from parents to their child to assist in purchasing a property which will ultimately become their child's marital home, there must be a strict condition applied by the Bank of Mum and Dad.
Children are being told in no uncertain terms by their parents that if they are borrowing money to enable them to get on the property ladder in their desired area, they have to play by their parents' rules.
They must tell their fiancé that obtaining a bespoke pre-nup to cater to their particular family circumstances is essential.
In fact, it is more important than choosing the glamorous wedding venue, designer dress or elaborate cake. Those frivolities may be short-lived, whereas a well drafted pre-nup prepared by a specialist family lawyer will hopefully endure and go some way in protecting the family fortune in years to come should the marriage come to an end.
The perception of pre-nups has altered dramatically in the last five years following the landmark case of Radmacher v Granatino when the Supreme Court ruled that a pre-nup was binding in the case of a German heiress who was purportedly worth £100 million, limiting the husband's divorce settlement.
Therefore, in the right case, such agreements can be given decisive or compelling weight by the court when deciding upon the division of marital assets on divorce. Before this judgment, pre-nups were not given the weight they deserved. They were seen by many to be a negative, unromantic and unattractive American import. Today, they are now an essential wealth protection step for HNW families and an intrinsic part of wedding planning.
Last year, the Law Commission went even further and recommended that pre-nups should be binding if they meet both parties' financial needs and comply with certain criteria, for example, being executed as a deed, both parties having received material financial disclosure from the other before signing, both parties having obtained independent legal advice and the agreement not having been signed less than 28 days before the wedding. Many believe that it is only a matter of time before this becomes law.
Those planning to marry should be aware that without a pre-nup, the English court has a very wide discretion to look at all of the circumstances of the case and the starting point, especially with longer marriages, would generally be a 50:50 division of the marital assets.
Thus there is the possibility of wealth acquired prior to the marriage being counted in this division if such an approach is justified in a particular case (for example, if one party' needs cannot be met by a straightforward sharing of the assets). This is a sobering concept for wealthy parents whose children are planning to marry and they should take heed.
Apart from the obvious wealth protection advantage of pre-nups, there are other advantages which can be used to promote their use to both parties. They can provide certainty and transparency at the outset of a marriage.
Discussing financial issues can be difficult at any point of a marriage. However, addressing such issues at the start can go some way to promote a healthy dialogue and, in the process, may strengthen a relationship.
They can also minimise the potential for acrimony on divorce and are cheaper than embarking on expensive litigation in years to come.
Crystal-ball gazing is of course a dangerous pursuit at the start of any relationship, but HNW families who decide against pre-nups purely on the basis that they are unromantic, that they might rock the boat or are more trouble than they are worth, should do so at their peril.
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