To have and to hold… not according to the Supreme Court.
In a landmark decision that’s set to shape financial settlements for years to come, the Supreme Court has redefined the limits of what counts as matrimonial property in divorce proceedings.
The case centred on a husband who had transferred approximately £77 million to his wife during the marriage. Despite the scale of the transfer, the Court ruled that the assets remained non-matrimonial and therefore not subject to the sharing principle typically applied in divorce settlements.
The detail matters
At the heart of the ruling was how the asset was treated by the parties throughout the marriage. Originating from the husband before the marriage, the asset had been transferred primarily for tax efficiency and for the benefit of the couple’s children. As such, the Court found that the intention was never to ‘matrimonialise’ the property – in other words, to convert it into jointly owned marital assets.
This case is a significant clarification for family lawyers. It reinforces the principle that simply transferring or mixing assets during a marriage does not automatically make them matrimonial, especially where there is evidence of a different intention.
What this means for divorcing couples
The judgment provides helpful guidance for separating couples with substantial pre-marital or inherited wealth. But it also acts as a reminder: clarity is key when making financial decisions within a marriage.
This is where nuptial agreements, both pre and post marriage, come into play. They can be an effective way to ringfence assets, reduce uncertainty, and avoid costly disputes further down the line.
How we can help
At Gorvins Solicitors, our Family Law team specialise in advising high-net-worth individuals and business owners on complex financial arrangements. Working closely with our Private Client and Corporate colleagues, we provide joined-up legal advice that considers the bigger picture.
Speak to us
If you’re considering a nuptial agreement or need advice on dividing finances during divorce, we’re here to help.
Get in touch with our Family team today on 0161 930 5151, email enquiries@gorvins.com, or fill in the online form.