When married couples in England and Wales separate, one of the most important questions is: which assets should be shared, and which remain separate? The law in England and Wales draws a distinction between matrimonial assets and non-matrimonial assets.
This distinction was examined at the highest level in the recent Supreme Court case of Standish v Standish, which has been described as one of the most significant family law judgments in years. The court considered whether large transfers made during a marriage should be treated as matrimonial property or left outside the “sharing principle.” You can read our full breakdown of that case here.
In this guide, we focus on the basics: what counts as matrimonial and non-matrimonial property, when non-matrimonial assets are considered matrimonial (known as matrimonialisation), why the distinction matters, and how it might affect a financial settlement on divorce.
Matrimonial Assets
Put simply, matrimonial assets are those assets which are acquired during the marriage for the benefit of the couple. These assets include:
- The family home
- Any other properties which were purchased during the marriage
- Joint savings and investments
- Pensions which were built up during the marriage
- Businesses or business interests developed during the marriage
These assets usually form what is known as the “matrimonial pot” and are the starting point for division. The general principle is equality — in many cases, a 50/50 split — unless there are reasons why a different outcome would be fairer.
Non-Matrimonial Assets
Non-matrimonial assets are those that fall outside the marriage, usually because of how or when they were acquired. Examples include:
- Property or savings owned before the marriage (if kept separate)
- Inheritances received by one spouse
- Gifts given to one spouse alone
- Certain trust or business interests that have not been mingled with family finances
Non-matrimonial assets are not automatically shared. However, if the matrimonial assets are not enough to meet the needs of one spouse or the children, the court can take non-matrimonial assets into account.
When do Non-Matrimonial Assets Become Matrimonial?
An important concept in the world of family law is the concept of matrimonialisation, turning separate assets into shared assets. Standish set an important new precent for this concept, making clear that it must be based on substance, not form. This means that a transfer of title is insufficient on its own, both parties must consider the asset as part of the marital pot.
As explained in our Standish article, the key test is: Did the parties treat the asset as shared over time, not just in title, but in intention and use?
Why the Distinction Matters
The difference between matrimonial and non-matrimonial assets can directly shape the outcome of a divorce settlement. How assets are classified can affect:
- What’s shared: Matrimonial assets are usually divided fairly between spouses, often starting from a 50/50 split.
- What may stay separate: Non-matrimonial assets — like inheritances or property owned before marriage — may remain with the spouse who brought them in.
- Blurred lines: If non-matrimonial assets are used for family purposes (e.g., to buy the family home), they can become part of the matrimonial pot.
- Meeting needs: Courts can include non-matrimonial assets if the matrimonial pot isn’t enough to meet housing or childcare needs.
The practical impact varies with the length of the marriage. In shorter marriages, pre-marital property and inheritances are more likely to remain separate. In longer marriages, these distinctions can blur, especially if the assets were used for the benefit of the family.
The recent Supreme Court case of Standish v Standish highlights that only matrimonial assets are automatically shared, reinforcing why classification matters. Because every case is unique, understanding the history and use of assets — and seeking specialist legal advice — is essential to achieving a fair outcome.
Because every case is unique, understanding how your assets are classified is essential to achieving a fair outcome.
Contact the Lisa’s Law Family team today to discuss your circumstances and get tailored legal advice.
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