Richard Kershaw explores when non-matrimonial property may become matrimonial in WealthBriefing
Richard’s article was published in WealthBriefing, 22 May 2025, and can be seen here.
Richard Kershaw, Partner in our Family & Relationships department, explores the implications of a major UK Supreme Court case, Standish v Standish, which is expected to deliver a landmark judgment later in this year.
The case centres on whether non-matrimonial property can become matrimonial property during a marriage, and how the sharing principle should be applied in financial remedy proceedings. A key point of contention is whether assets transferred from Mr Standish to his wife as part of a tax planning scheme should be considered part of the matrimonial asset pool.
Initially, the High Court ruled in favour of Mrs Standish, awarding her £45 million from a £132 million asset pool, based on the finding that the transferred assets had become “matrimonialised”. However, the Court of Appeal overturned this decision, reducing her award to £25 million - the largest reduction in English divorce history.
The Court of Appeal held that the source of the wealth remained with Mr Standish, and that the transfer of assets did not change their fundamental character. The court rejected the argument that title alone determined ownership, emphasising that the origin of the wealth was the decisive factor.
The Supreme Court must now decide whether the sharing principle should apply to assets that originated before the marriage but were transferred during it.
The case raises broader questions about the legal weight of asset transfers made for tax purposes and whether possession or source should determine ownership in divorce proceedings. Richard notes that the outcome could reshape how courts treat pre-marital wealth and tax-motivated transfers, with significant implications for high-net-worth individuals and family law practitioners alike.
Read the full article on the WealthBriefing website [external link].