On 2 July 2025, the UK Supreme Court handed down its decision on what constitutes matrimonial property in the case of Standish v Standish. This case has been hailed as one of the most significant rulings on the division of assets on divorce in England and Wales, particularly where pre-marital or inherited assets are involved. The decision brings long-awaited clarity to what was arguably a murky area of law. What constitutes matrimonial property? Just because assets are received during a marriage, this does not automatically mean they become subject to equal division on divorce. Instead, the source of the asset and the intention behind the transfer, matters more than the name in which it is is held. Lydia Pilati, Associate Solicitor in our Family law team, sets out the background to the case, the Supreme Court’s judgment and what this means for wealth protection, estate planning and financial settlements on divorce. Background to the Standish v Standish case The husband, a former CFO at UBS, had accumulated substantial personal wealth – much of it prior to the marriage in 2005. In 2017, following professional advice aimed at reducing future inheritance tax liabilities, he transferred approximately £80 million of investments into his wife’s name. The couple intended to use the funds to establish trusts for their children, but the trusts were never created. When the marriage broke down in 2020, the wife claimed that the transferred assets had become matrimonial property and therefore should be shared equally. The High Court agreed in part, awarding her £45 million. However, the Court of Appeal reduced the award to £25 million, finding that the assets had retained their non-matrimonial character. The wife then appealed to the Supreme Court. The judgment The Supreme Court unanimously dismissed the wife’s appeal. In the judgement the Court clarified a number of legal principles, namely: The source of the asset matters An asset’s status – matrimonial or non-matrimonial – depends on its origin, not whose name it is held in. Assets acquired before marriage, by inheritance, or as gifts, will be viewed on divorce as non-matrimonial unless there is compelling evidence that they were treated as shared during the marriage. This means that such assets can often be protected from claims brought by a spouse when going through divorce. Title does not necessarily determine matrimonial property Transferring an asset into a spouse’s name does not, on its own, convert it into a jointly owned matrimonial asset. The legal title is not determinative of its character. “Matrimonialisation” of assets requires clear conduct To “matrimonialise” a non-matrimonial asset, the spouse seeking division must show that it was deliberately or consistently treated as part of the couple’s shared wealth. Gifts for tax planning are not gifts of ownership Where assets are transferred purely for tax structuring or estate planning purposes, this does not imply an intention to share them in the event of divorce. The sharing principle only applies to matrimonial assets The principle of sharing assets equally on divorce applies only to assets acquired during the marriage or treated as matrimonial. Non-matrimonial assets fall outside this rule unless they are required to meet the financial needs of the other spouse: the ultimate determinant is the parties’ future needs. Why does Standish v Standish matter? The Supreme Court’s decision sends a clear message: wealthy individuals must take careful advice when entering a marriage or when transferring or structuring assets during the marriage, particularly if such assets relate to pre-marital, inherited, or family wealth. With the right planning, and where intentions are properly documented, ownership of such assets can be preserved on divorce. The case also serves as a cautionary tale for those wishing to ringfence certain assets from potential division on divorce – any agreement that they are “non-matrimonial” should be very clearly documented. This is where pre-nuptial agreements and post-nuptial agreements come in and helpful. Whether you are preparing for marriage (or indeed already married), or structuring your estate, Standish v Standish has implications that should not be overlooked. How can Morr & Co help? If you would like to discuss your situation with an experienced solicitor, our experienced family team will be able to answer any questions you may have. You can contact them by email info@morrlaw.com or by calling 0333 038 9100. Disclaimer Although correct at the time of publication, the contents of this newsletter/blog are intended for general information purposes only and shall not be deemed to be, or constitute, legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position. Authored by Lydia Pilati Associate Solicitor Message Tags Insights On this page Related Stories Who gets the dog? The power of Pre-nuptial Agreements Inheritance tax changes from 2024 Autumn budget View more Contact our team today to find out more get in touch
