Matrimonialisation – distributing property in divorce

In July 2025, the UK Supreme Court gave its decision in the case of Standish v Standish.

This case is significant as it sets out principles as to how matrimonial property and non-matrimonial property should be treated in the event of a divorce.

The Courts of England and Wales have a wide discretion to distribute assets between the spouses upon divorce. The starting point is equality, but needs will always trump equality.

What is matrimonial and non-matrimonial property?

The case provided an important definition between matrimonial property and non-matrimonial property.

• Matrimonial property are assets that have accrued during the marriage.
• Non-matrimonial property can include pre-acquired wealth, inheritance, etc.

Background of the Standish case

In the case of Standish v Standish, the husband had substantial personal wealth, much of it accrued prior to the marriage in 2005.

In 2017 the husband, following professional advice aimed at reducing future inheritance tax liabilities, transferred approximately £80 million of assets into his wife’s sole name. The intention was to establish trusts for their children, but the trusts were never created.

Five key legal principles from the Standish judgment

1. The concept of the distinction between matrimonial property and non-matrimonial property.
2. That the sharing principle only applies to matrimonial property and does not apply to non-matrimonial property.
3. The starting point for matrimonial property is that it shall be shared equally but that equality can be departed from.
4. The concept of matrimonialisation – the process which non-matrimonial property must go through to become matrimonial property. This is considered in light of how the parties have treated the assets.
5. Fact specific – that tax saving schemes will not convert non-matrimonial property into matrimonial property.

The case determined that 75% of the assets remained the husband’s non-matrimonial property. It also widened the concept of matrimonialisation.

Factors Courts consider when dividing property

• The intention of the owning spouse.
• The treatment of the asset by the parties.
• The intention within that treatment.

The sharing principle of equality of matrimonial property can be departed from, but one would need to show why it should not be split 50/50.

Learnings about matrimonialisation from the Standish case

What is clear is that non-matrimonial property is not automatically matrimonialised by transferring it into joint names. The original source of the funds will still be relevant.

As a result, many questions still remain unanswered. Therefore, partners contemplating marriage or already married, should seriously consider entering into a pre-nuptial or post-nuptial agreement to define their property, especially if they wish to ensure it is kept as non-matrimonial property.

How can Morr & Co help?

If you would like to discuss your situation with an experienced lawyer, 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.