Standish v Standish: the sharing of non-matrimonial assets on divorce

The recent decision in Standish v Standish has significantly reshaped the landscape of family law in the UK, particularly concerning the treatment of non-matrimonial assets during divorce settlements. This case, which reached the Supreme Court in 2025, has provided essential clarifications on how financial assets should be classified and divided upon the dissolution of a marriage. The implications of this ruling are important, especially for high-net-worth individuals navigating the complexities of asset division.

Background

In 2005, Anna Catherine Standish and Clive Thomas Standish entered into marriage, both bringing substantial financial backgrounds into their union. Clive, having amassed considerable wealth through his career in the financial services sector, transferred approximately £80 million in investments to Anna in 2017 as part of a tax planning strategy. This transfer was intended to benefit their children through a trust, which was never established. When the couple's marriage deteriorated, Anna claimed that these assets should be considered matrimonial property, leading to a contentious legal battle.

Initial court proceedings

The initial hearings in the High Court found that the total assets amounted to around £132 million, with a significant portion attributed to the 2017 transfer. The judge ruled that these assets had become matrimonialised due to the transfer, leading to an award of £45 million for Anna. However, Clive contested this decision, arguing that the assets remained non-matrimonial due to their origin and purpose.

Court of Appeal ruling

The Court of Appeal later overturned the High Court's decision, reducing Anna's award to £25 million. The judges determined that the assets had not been matrimonialised simply by the act of transferring them. Instead, they emphasised the importance of the source of the funds and the intention behind the transfer, concluding that 75% of the assets should remain classified as non-matrimonial.

Key legal principles established

The Supreme Court's ruling in Standish v Standish clarified several critical legal principles regarding asset division in divorce cases.

Distinction between matrimonial and non-matrimonial property

One of the most significant outcomes of this case is the reaffirmation of the distinction between matrimonial and non-matrimonial property. Matrimonial property is defined as assets accumulated through the joint efforts of both parties during the marriage. In contrast, non-matrimonial property includes assets brought into the marriage or acquired through inheritance or gifts. This distinction is crucial in determining how assets are shared upon divorce.

The sharing principle

The sharing principle denotes that matrimonial property should typically be divided equally between spouses. However, the Supreme Court clarified that this principle does not extend to non-matrimonial assets. The court emphasised that the source of the asset is a critical factor in determining its classification and subsequent division.

Matrimonialisation of non-matrimonial assets

The concept of matrimonialisation refers to the process by which non-matrimonial assets may become subject to the sharing principle. The Supreme Court established that for an asset to be considered matrimonialised, there must be clear evidence of intention to share the asset, coupled with a consistent treatment of the asset as shared over time. This ruling underscores the importance of how parties manage their finances during the marriage.

Implications for high net worth divorces

This decision has far-reaching implications for high net worth divorces, where the stakes are often significantly higher.

Protection of pre-marital wealth

For individuals entering into marriage with substantial assets, this ruling provides reassurance that their pre-marital wealth remains protected unless there is clear evidence of intent to share those assets. This is particularly relevant for those who may have concerns about the potential for asset division in the event of a divorce.

Need for clear financial agreements

The case highlights the importance of having clear financial agreements, such as prenuptial or postnuptial agreements, which can delineate the status of assets as matrimonial or non-matrimonial. Such agreements can provide clarity and security for both parties, reducing the likelihood of disputes during divorce proceedings. However, prenuptial agreements can also be challenged.

The role of family courts

Family courts play a crucial role in interpreting and applying the principles established in Standish v Standish.

Discretion in asset division

While the Supreme Court has provided a framework for understanding asset classification, family courts retain discretion in determining how assets should be divided based on the specific circumstances of each case. This discretion allows courts to consider the unique dynamics of each marriage, including the contributions of both parties and their financial needs.

Focus on fairness

The overarching aim of family courts remains to achieve a fair outcome for both parties. This focus on fairness is particularly important in cases involving non-matrimonial assets, where the court must carefully assess the intentions and behaviours of the parties throughout the marriage.

Future considerations

As the legal landscape continues to evolve, several considerations emerge for individuals navigating divorce settlements.

Increased scrutiny of financial conduct

The ruling may lead to increased scrutiny of how couples manage their finances during marriage. Parties may need to be more intentional about how they treat assets, ensuring that their actions align with their intentions regarding asset sharing.

Potential for further legal challenges

Given the complexities surrounding asset classification and division, it is likely that future cases will continue to explore the nuances of matrimonialisation and the sharing principle. Legal practitioners will need to stay abreast of such developments in family law.

Conclusion

The Standish v Standish case marks a pivotal moment in family law in the UK, particularly concerning the treatment of non-matrimonial assets in divorce settlements. By clarifying the distinction between matrimonial and non-matrimonial property, as well as the principles governing asset division, this ruling provides essential guidance for individuals navigating the complexities of divorce.

The implications of this case will undoubtedly resonate in future family law proceedings, shaping the way assets are classified and shared in the context of divorce.

For further information and trusted legal advice regarding divorce, get in touch with us at Carlsons Solicitors.