Matrimonial Assets – When couples get married, the law considers any wealth (and property) built up during the marriage to be ‘equal’, and so in the event of a divorce, the starting point is a 50/50 division. But what if the finances are unequal at the start of a marriage, e.g. property owned prior to marriage? Or if couples build up shared wealth using personal funds? Could those assets become ‘matrimonialised’? How does the court decide who keeps what?
The recent case of Standish vs Standish answers some of those questions:
What happened to Mr and Mrs Standish?
Married for nearly 15 years and with two children, the family always benefited from Mr Standish’s outstanding career as a banker and the fortune of £132 million that came with it. They married only two years before Mr Standish retired, so most of his wealth should have been non-matrimonial.
In 2017, Mr Standish transferred £77m of his personal wealth to Mrs Standish, with the purpose of placing the funds in a trust to the benefit of their children. The trust was never set up, and the funds remained in her account as the divorce proceedings began. At the Final Hearing, the Court determined the funds had been matrimonialised, had therefore become an asset of the marriage, and awarded Mrs Standish 40% of the couple’s combined wealth (£45m). Both appealed.
The Court of Appeal found in favour of Mr Standish and reduced the amount to Mrs Standish to £25 million.
Mrs Standish appealed again. The Supreme Court reaffirmed that matrimonial assets, no matter who holds the legal title, should be divided in accordance with the sharing principle, and pre-matrimonial wealth does not necessarily need to be taken into account, provided that the needs for all parties are met.
If you are bringing significant funds into a marriage, it is vital to obtain specialist legal advice beforehand. A Pre-Nuptial Agreement can be an effective tool to protect those assets from matrimonialisation.
Simon Magner Mawdsley
Partner – Head of Family Team
Aaron & Partners
Tel: 01244 405 415
Mobile: 07388002124
Chester | Shrewsbury | Altrincham | Wirral
www.aaronandpartners.com
