In a significant ruling that’s set to impact high-net-worth divorces for years to come, the UK Supreme Court has made it clear: the sharing principle does not apply to non-matrimonial property. The judgment follows the highly publicised case between Clive and Anna Standish, involving a dispute over £77.8 million in transferred assets.

The Background

Clive Standish transferred nearly £78 million to his wife Anna in 2017, as part of a tax planning strategy intended to benefit their children. When the marriage ended in 2020, the couple entered financial remedy proceedings. Initially, the court deemed the assets matrimonial and split them 60/40 in Mr Standish’s favour, awarding Anna £45 million.

However, the Court of Appeal later ruled that at least 75% of those assets were non-matrimonial and should not have been subject to division under the sharing principle. This reduced Anna’s award to £25 million. She appealed the decision to the Supreme Court.

The Supreme Court's Decision

In a unanimous judgment, the Supreme Court dismissed the appeal, siding with the Court of Appeal. The justices were clear: there was no evidence that the assets had been treated by the couple as jointly owned. The purpose of the 2017 transfer was tax efficiency – not to share the wealth within the marriage.

As Lord Burrows and Lord Stephens wrote:

“There is nothing to show that, over time, the parties were treating the 2017 assets as shared between them… The transfer was to save tax and was for the benefit of the children, not the wife.”

The Court confirmed that there was no ‘matrimonialisation’ of the assets. Without a shared intention or conduct that could convert the assets into matrimonial property, the default legal position prevailed.

Implications for Future Divorce Settlements

This ruling draws a clear line in the sand: non-matrimonial property – such as pre-acquired wealth, gifts, or inherited assets – will not automatically be subject to equal division unless they have been treated as shared assets during the marriage.

As family lawyers across the country have pointed out, this judgment may:

  • Encourage increased use of prenuptial and postnuptial agreements to clearly define ownership.
  • Provide reassurance to wealthy individuals concerned about asset division upon divorce.
  • Emphasise the importance of recording any intention to share non-matrimonial assets clearly and explicitly.

A Landmark in Matrimonial Law

Commentators from leading law firms have described this as a narrowing of the concept of “matrimonialisation” and a move towards greater clarity for the courts. While some view it as a step toward wealth preservation, others suggest it’s more of a fine-tuning of existing principles than a total transformation.

Either way, it’s a stark reminder of the need for careful financial planning during a marriage – particularly where substantial assets are involved.

Need Advice on Protecting Your Assets in Divorce?

At Arlingsworth Solicitors, our experienced family law team can help you navigate complex financial settlements, advise on prenuptial and postnuptial agreements, and ensure your interests are safeguarded throughout.