The Impact Of Recent Court of Appeal Decision On Divorce Proceedings

06 Dec 2024

Trainee Solicitor Charlotte Padfield discusses landmark Standish v Standish Court of Appeal Divorce Case

The recent decision in the landmark case Standish v Standish has brought fresh insight into how the courts approach the division of matrimonial and non-matrimonial assets in divorce proceedings.

What’s the Difference?

Matrimonial assets are those built up during a marriage and are generally considered to be part of the “marital pot”, such as the family home and a joint savings account. Non-matrimonial assets, however, are those typically acquired either before the marriage or after the parties have separated.

This Case in Brief

The parties were married for 22 years and had two children together. The husband, a successful businessman, had amassed considerable wealth before the marriage and after. The wife, meanwhile, contributed in a more traditional capacity, managing the home and raising the children. She had also brought modest wealth into the marriage.

An important financial event took place in 2017 whereby the husband transferred investment funds of £77 million to his wife for inheritance tax planning purposes. This sum, however, being only part of their £132 million total wealth.

The wife argued the gift was matrimonial property and should, therefore, be subject to the sharing principle. She further asserted the gift was transferred and held in her sole name emphasising the importance of title ownership.

The wife’s argument was initially accepted by the High Court where they ruled that £122 million (including the £77 million gift) were matrimonial and subject to division.

The proposal led to a division of assets in favour of the husband 60/40. However, the Court of Appeal later overturned this ruling, focusing on the source of the asset as opposed to whose name it was held in.

The Court of Appeal determined that the majority of the couple’s wealth, including the disputed £77 million gift, originated from the husband prior to the marriage and had, in fact, retained its non-matrimonial status.

The Court of Appeal, therefore, dismissed the wife’s appeal and allowed a cross-appeal from the husband resulting in a reduction of the wife’s award.

This case, however, will be considered further in the Supreme Court. Therefore, this is an area of law which is subject to change, but it is hoped this final decision will provide clarity on how “matrimonialised” assets are to be treated.

Why this Case Matters to You

If you are concerned about how assets might be divided in a divorce, a carefully drafted pre-nuptial or post-nuptial agreement can provide you with a layer of protection. These agreements pre-empt the matrimonialisation of non-matrimonial assets by delineating their use and ownership.

For advice on pre-nuptial or post-nuptial agreements or if you would like to discuss any of the points raised in this article, please do contact a member of the Mogers Drewett Family Team who would be pleased to assist you.