Non Matrimonial Assets “Matrimonialisation”

“Matrimonial assets” are those assets that have been built up during the marriage by the spouses’ joint efforts. For example, the home, savings, pensions, even if in separate names. Usually, matrimonial assets should be shared equally, unless there is a good reason not to do so.

Generally, “non-matrimonial” assets should be kept by the spouse who brought them into the marriage. Non matrimonial assets are assets one spouse owned before the marriage or built up after separation. Also, those which came from an outside source, say inheritance or compensation claim. Such assets would only usually be shared with the other spouse, if necessary, to meet financial “needs” generated by the marriage or if they became “matrimonialised”.

A Non matrimonial asset can be “matrimonialised” because of how the spouses deal with the asset. If matrimonialised, then it should be shared in divorce. For example, a house brought into the marriage, could be matrimonialised, if the other spouse lives there a long time, shares it as the family home and contributes to it. Also, for example, if a spouse gets an inheritance, but pays this into the joint family home, showing intention it should be shared.

Matrimonialisation was the main issue in the recent Court of Appeal case of Standish v Standish. In that case the husband had significant assets he brought into the marriage. It was a long marriage, with children. He said he did transfer some assets into his wife’s name, purely for tax reasons. The wife said putting assets in her name, showed intention they should be shared equally. The Court of Appeal said simply putting assets into the wife’s name did not matrimonialise them and that it was the source of the asset, i.e where they had come from, which was important. The court decided in fairness, the husband should be given some credit for assets he brought into the marriage, but that assets built up during the relationship should be shared. As a result the wife received 25%.

This case demonstrates the wide discretion the Court has in deciding matters. The outcome is never certain. It shows that non matrimonial assets may not be shared and even if shared, it may not be equally, to give some credit to the spouse who brought them in.

Whilst the Courts discretion how to divide assets cannot be blocked, a Pre-Nuptial Agreement, can offer some protection. This could make clear, in the event of future Divorce, what assets the spouses would like to share between them, but also make clear, what non matrimonial property they do not wish to share on Divorce. This could save costly legal arguments upon future separation.

If you would like further advice on the issues raised in this article, please contact our Family Law Department.