The case of Standish v Standish: determining the status of pre-marital assets

The Standish v Standish 2024 case clarifies whether pre-marital assets are “matrimonial” or “non-matrimonial” in divorce proceedings. This landmark decision by the Court of Appeal provides clarification for the purposes of the sharing principle in financial remedy cases.

Catherine Hyde, of Coodes’ Family team, explores this landmark case, its impact and significance.

What are matrimonial and non-matrimonial assets?

Matrimonial assets are assets which have been acquired during the marriage and which have been shared by both parties. These include the family home, additional properties, pensions, investments and savings. When calculating any divorce settlement, matrimonial assets are subject to the sharing principle and will be shared between the parties.

Non-matrimonial assets are assets which were acquired prior to the marriage or after separation of the parties. These will not necessarily be shared between the parties. However, there are circumstances where non-matrimonial assets could be included in the division of assets, for example, if they have been mingled with matrimonial finances or they are required to meet the other party’s needs.

Facts of the case

The husband and wife began their relationship in 2003, before getting married in 2005. They had 2 children together. The husband retired in 2007 before the parties returned to live in the UK in 2010.

The husband had a successful career and acquired a significant amount of his wealth prior to meeting his wife. Throughout the relationship, the wife was the homemaker with modest pre-marital assets.

In 2017 the husband transferred a sum of approximately £77 million to the wife as part of a tax planning exercise with a view to it being placed in trust for the children. However, this never happened, and the wife then issued divorce proceedings in early 2020.

The wife’s case was that the amount transferred to her by the husband had been “matrimonialised”. Therefore, it should be taken into account when calculating the divorce settlement.

The husband’s case was that although the money was transferred to his wife for tax purposes, the majority of the assets were his prior to the marriage. He felt they should be classed as non-matrimonial for the purpose of the financial remedy proceedings.

There was approximately £132 million of assets in this case. In first instance, the judge found that £122 million, including the £77 million gift, were matrimonial assets. Therefore, they were subject to the sharing principle for the purpose of calculating any settlement. Of that, only £20 million was determined to be non-matrimonial.

Decision made by the Court of Appeal

The judge gave a 60/40% (£67 million/£45 million) split in the husband’s favour.

The wife appealed the decision and sought to increase her £45 million to £66 million. This was on the basis that she should be apportioned half of the party’s total wealth of £132 million.

The Court of Appeal dismissed the wife’s appeal but allowed a cross-appeal from the husband. The husband argued that the money was acquired before the marriage and should therefore be deemed as a non-matrimonial asset. 

As a result, the Court of Appeal reduced the wife’s award to £20 million, the largest ever reduction in UK divorce history.

The impact and significance of this case

The case of Standish has given greater range for argument that an asset brought into the marriage will not automatically be assumed to be subject to the sharing principle.

This decision also sets out the importance of the source of assets when being taken into account in financial remedy proceedings. It highlights that even though an asset is brought into the marriage, it will not automatically be assumed to be subject to the sharing principle.

Coodes expert family and divorce lawyers can help you with a wide range of matrimonial property matters. We can assist with non-matrimonial and matrimonial assets to transfer ownership of previously shared property.

For more information, get in touch with Catherine Hyde from the Family Team. Email catherine.hyde@coodes.co.uk or call 01872 246228. Alternatively, use our online contact form to send us an enquiry.