In a landmark decision, the UK Supreme Court has clarified how courts should treat non-matrimonial property (NMP) in divorce, especially in high-value cases.
Background
Mr. Standish, a wealthy financier, transferred £80 million in investments to his wife in 2017 for tax planning. The goal was to create trusts for their children (to avoid inheritance tax), but the wife never created the trusts. After their separation in 2020, she argued the transfer was a gift and should be shared equally.
What the Courts Said
- Trial Judge: The assets became matrimonial through the transfer — split 60/40 in favour of the husband.
- Court of Appeal: Only 25% of the assets were matrimonial; 75% stayed with the husband.
- Supreme Court: Agreed. The transfer was for tax reasons, not a gift, and the assets were not treated as shared.
Key Takeaways
- Sharing Principle applies only to matrimonial property, not pre-marital wealth, gifts, or inheritance.
- Legal ownership doesn’t decide whether assets are shared — conduct and intention matter.
- Assets only become “matrimonialised” if treated as shared over time.
- Tax-motivated transfers don’t count as sharing the asset.
Why It Matters
This ruling strengthens the line between personal and shared wealth in divorce. For family lawyers and high-net-worth clients, it provides a clearer framework: ownership and paperwork matter less than how assets are used and treated in the marriage.
For full judgment see: Standish (Appellant) v Standish (Respondent) – UK Supreme Court
Need Expert Advice on Divorce and Financial Settlements?
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