In a previous article, we discussed the case of Standish v Standish – a high-profile divorce case that was set to change how wealth is divided in future divorces across England and Wales.
We highlighted the case surrounding proceedings brought under the Matrimonial Causes Act 1973 for the division of assets upon divorce, in which a wife argued that assets transferred into her name for tax purposes should be considered part of the marital pot and split equally.
Although the High Court initially agreed with the wife, the Court of Appeal later sided with the husband, reducing her award from £66 million to £20 million, marking the largest ever reduction of a divorce award in English legal history. In response, the wife made further appeals to have that decision revoked. Read our article here: Dividing Wealth on Divorce: Why Standish v Standish Matters to You.
Sharing Principle Does Not Apply to Non-Matrimonial Property
In a final update, the Supreme Court has dismissed the wife’s appeal, ruling that the sharing principle does not apply to non-matrimonial property. Upholding the decisions and order of the Court of Appeal and dismissing the wife’s appeal, the judgment said:
‘In this judgment, we have thought it important to clarify that the sharing principle does not apply to non-matrimonial property; and to explain what underpins matrimonialisation and precisely why it is inapplicable to the transfer of the 2017 assets in this case.’
Source: Supreme Court finds sharing principle does not apply to non-matrimonial property
Why Does This Matter to You?
It is predicted that this final decision from the Supreme Court could significantly impact how courts deal with pre-marital assets, inheritances, and gifts, potentially altering how they handle divorce cases. If you’ve built up wealth before marriage or want to protect your assets, a prenuptial or postnuptial agreement might soon become more important than ever.
As this case now highlights, there is one key message, if you want to protect what’s yours, planning ahead is essential.
Our family law solicitors can provide guidance and support in navigating the complexities of Family and Child Law.
Related Articles:
How are Complex Assets or Businesses Handled in a High-net-worth Divorce?
Why a Prenuptial Agreement Could Be a Smart Choice for Your Marriage
This blog post is not intended to be taken as advice or acted upon. If you are seeking legal advice, please contact our team of solicitors
