Henry Hood examines the case of WX v HX [2021] EWHC 241 and divorce settlements in EPrivateClient

Henry’s article was published in eprivateclient, 25 November 2021, and can be seen here.

Henry Hood, Head of our Family & Relationships department, reflects on the recent High Court case of WX v HX [2021] EWHC 241, which underscores the significant impact that asset management during a marriage can have on divorce settlements.

In this case, a couple divorcing after 33 years faced a dispute over the division of £55 million in assets. While the husband, a banker, had used his income to support the family and acquire assets, the wife, a homemaker, had kept her £14 million in family wealth separate. The court largely accepted the wife’s argument that her family assets should remain hers, resulting in her receiving more than half of the total assets, an outcome the husband viewed as unjust.

The judgment highlights the legal distinction between matrimonial and non-matrimonial assets. Matrimonial assets, those acquired through the couple’s joint efforts during the marriage, are typically divided equally. Non-matrimonial assets, such as inheritances or pre-marital wealth, are usually retained by the original owner unless they have been mingled with matrimonial assets.

In this case, the husband’s failure to keep his pre-marital wealth separate meant it lost its non-matrimonial status, while the wife’s careful separation of her family wealth preserved its character. The case serves as a cautionary tale, emphasising the importance of proactive financial planning and the potential value of nuptial agreements in clarifying asset treatment in the event of divorce.

Read the full article on the eprivateclient website [subscription required].