Divorce | Finance | Marriage Inheritance and Pre-Marriage Assets on Divorce Posted by Fiona Griffin July 7, 2025 Read more One of the questions that we are asked most frequently is to what extent will my inherited or pre-marriage assets be subject to sharing on divorce. The answer is not a straightforward one. However, the Supreme Court has provided some clarification this month in the ruling of Standish v. Standish [2025] UKSC 26. In the complex world of divorce and financial settlements, one of the most critical issues is how assets are classified. English law distinguishes between matrimonial and non-matrimonial property—a distinction that can significantly affect how wealth is divided on divorce. What are matrimonial and non-matrimonial assets? Matrimonial property generally refers to assets acquired during the marriage through the joint efforts of the couple. Non-matrimonial property on the other hand is usually acquired before the marriage, or inherited during or before the marriage, received as a gift to one party only or arising from personal injury claims or trusts established before the marriage (these examples aren’t exhaustive). Inheritance when received by one party to a marriage starts out as a non-matrimonial asset, but depending on what happens next it is possible for that inheritance to become “matrimonialised”. Similarly, a party’s pre-marriage assets when retained in their sole name (apart from where that asset becomes the family home) may well be classed as “non-matrimonial”. The distinction between which are matrimonial and which are non-matrimonial assets is key because as confirmed by the Supreme Court, the sharing principle only applies to matrimonial assets where the starting point will be a 50/50 division, whereas the sharing principle does not apply to non-matrimonial assets. “Needs” trumps the distinction between matrimonial and non-matrimonial assets, but for couples whose assets are more than strictly needed this is important. But when exactly does a non-matrimonial asset become “matrimonialised”? “Matrimonialisation” refers to the process by which non-matrimonial assets become treated as matrimonial due to the way they are used or integrated into the marriage. Essentially, even if an asset starts as non-matrimonial, certain actions may lead to it being included in the pot for division on divorce. In an earlier case three situations of matrimonialisation were identified as: Over time matrimonial property of such value has been acquired as to diminish the significance of the initial contribution by one spouse of non-matrimonial property. Over time the non-matrimonial property initially contributed has been mixed with matrimonial property in circumstances in which the contributor may be said to have accepted that it should be treated as matrimonial property or in which at any rate the task of identifying its current value is too difficult. The contributor of non-matrimonial property has chosen to invest it in the purchase of a matrimonial home which, although vested in his or her sole name, has come over time to be treated by the parties as a central item of matrimonial property In the Standish case the court made it clear that: There is a distinction between matrimonial and non-matrimonial property which turns on the source of the assets rather than who has the title to the assets. Non-matrimonial property should not be subject to the sharing principle although it can be subject to division due to the demands of “needs” or “compensation”. The sharing of matrimonial property should normally be on an equal basis but there can be justified departures from equal sharing (again this will be for reasons of “need” or “compensation”). What starts as non-matrimonial property may become matrimonial property the important question on any facts whether that transformation has occurred. The three ways of matrimonialisation taking place as set out above are not exclusive (on the facts of a case there may be other ways in which assets become matrimonialised). “Matrimonialisation” rests on the parties, over time, treating the asset as shared. In this particular case the fact that the assets were transferred between the parties to save tax did not mean that they had been “matrimonialised”. Legal perspective: fairness and needs The leading principle under English law (particularly under section 25 of the Matrimonial Causes Act 1973) is fairness. Courts strive for a fair outcome, and in some cases, that means sharing non-matrimonial assets to meet the needs of both parties, especially where: There are children involved One party has significantly fewer financial resources The assets are necessary to rehouse both parties So even if an asset has not been strictly matrimonialised, it may still be shared if required to meet needs. I’m concerned about my assets being shared on divorce, can I prevent matrimonialisation? There are a few steps that might help: Pre- or post-nuptial agreements: While not automatically binding, they are given significant weight by courts. The key things are that the agreement must be:– Fairly negotiated– Supported by full financial disclosure– Each party having individual legal advice– The document being signed with sufficient lead time before the marriage or if already married before the transfer of assets. Clear separation of assets: Keeping inherited or pre-marital assets in separate accounts or trusts may help preserve their non-matrimonial nature. Documenting intentions: If you receive a gift or inheritance, keep records of its source and intended use. Final thoughts Matrimonialisation is not a rigid rule, but a fluid concept shaped by the facts of each case. Courts look at the substance of how assets have been treated during the marriage—not just the legal ownership. If you’re concerned about how your assets might be treated in a divorce, early legal advice and careful planning are essential. Need legal advice? If you’re going through a divorce or planning to protect your assets before marriage, consulting a family law specialist is a smart step. Each situation is unique, and expert advice can save you both stress and financial uncertainty. Related insights July 7, 2025, by Fiona Griffin Inheritance and Pre-Marriage Assets on Divorce Divorce | Finance | Marriage July 1, 2025, by Walker Family Law How do I know if my relationship is abusive? Domestic Abuse June 24, 2025, by Fiona Griffin Blended Families: Emotional Rewards & Legal Issues Family law View all