Couples looking to protect the money they each bring to a marriage are mistaken in believing that trust funds can keep their savings safe should they later divorce.

The warning comes from Latimer Hinks solicitors as more and more people adopt the Hollywood trend of deciding the share of the spoils on separation, even before they have tied the knot.

Judith Middleton, a partner in the Darlington-based law firm, says it is a misconception that money invested in trusts is untouchable in a divorce settlement. Savings in trust, which cause a great deal of litigation in the family courts, have to be disclosed, along with any interest a partner may have as a discretionary beneficiary of a trust.

If a spouse has been receiving the benefits of wealth from a third party, whether it be in the direct form of income or as the beneficiary of a trust then the court has the power to take this into account. The court may be prepared to make an order which, given the spouse’s personal income and assets, could not be met personally but could be met with the assistance of the third party. This is known as ‘judicious encouragement’ and if the trustees say ‘No’, then the spouse involved .is potentially liable of being in contempt of court.

In a very recently reported case the Appeal Court granted the wife of a leading City figure access to the workings of her husband’s £64.6million offshore family trust, despite his claims that it is a ‘dynastic’ trust for the benefit of their children and descendants and should not be part of a divorce settlement.

Judith said: "In financial proceedings on divorce, the court has a wide discretion to make whatever order is fair. The court has to give first consideration to the welfare of any minor child."

"Surprisingly, discretionary trusts, where the legal title of the trust assets is vested in the trustees, are regularly the subject of orders made by family courts. The court is then entitled to review the potential availability of wealth from sources administered by the trustees."

"Divorce settlements are evolving all the time with a number of high profile cases. In recent times, wives have been awarded an interest in future earnings or a share in inherited wealth, rather than just a portion of the wealth accumulated during the marriage. It is certainly no longer the case that either party in a divorce can completely protect their assets."

However, whilst historically pre-nuptial agreements of the kind favoured by celebrities and the super-rich are generally unenforceable in English law because they are believed to contradict the legal principle of marriage as a life-long union, they are now beginning to find favour with the courts. An agreement may have evidential weight in court if its terms become relevant to an issue in subsequent divorce proceedings. It may also be useful in clarifying the assets each party had on entering the marriage.