Standish v Standish Case Study: How Are Assets Acquired Before A Marriage Shared Upon Divorce?

The July 2025 judgement of the Standish v Standish case sheds light on pre-marital assets and how they should be shared when the couple divorces.

This case deals with the complex question of ‘does my partner receive assets I acquired before our marriage?’. What falls into the so called “matrimonial pot” for division and what does not?

The case sets a powerful precedent for the future of financial remedy proceedings in UK family law.

Background to the Standish v Standish case

Standish v Standish is a case brought in 2024 brought under the Matrimonial Causes Act 1973. MCA 1973, the law in England and Wales, governs:

• Divorces and dissolutions of civil partnerships
• Financial remedies
• The division of assets following divorce or dissolution

The facts in brief

At the time of the hearing the Husband was 72 and the wife 57. The husband had been married previously but had been with his second wife for 15 years and they had two young children together. The Husband had a successful career spanning 32 years before his second marriage and had amassed significant assets.

In 2017, three years before separation Mr Standish transferred assets worth £77.8 million pounds to his then wife. This transfer was part of tax planning measures to avoid Inheritance Tax in the United Kingdom, and it was intended the Wife was to use the money to set up a trust in Jersey for the benefit of the two children. The wife never set up the trust.

By the time the case came to Court the total assets were valued at £132 million. The Wife had £95.7 million and the Husband £36.9 million. The  case centred around how the wealth accrued by Mr Standish prior to the marriage should be treated and more particularly whether the transfer of £77.8 million to the wife was  “matrimonialised”  so did it go into the “matrimonial pot” for division ?

A key point was that the value of these assets was acquired my Mr Standish prior to the couple’s marriage but the Judge held that the assets transferred to the wife had been “matrimonialised” and were therefore  subject to sharing

However, rather than a 50/50 split, the decision was made by the trial judge to award a 60/40 split in favour of the husband. This was based on the judge’s opinion that the source of the assets transferred in 2017 was primarily from Mr Standish.

Both parties appealed  to the Court of Appeal. The Wife argued the assets transferred to her by the husband should be her separate property and not subject the sharing. The Husband argued that the assets transferred by him to the wife were not “matrimonialised”, that the source of the funds was from his pre-marital endeavour, and they should not go into the “matrimonial pot”.

The Court of Appeal Rules in Favour of Mr Standish

The Court of Appeal had to grapple with two main issues:

1. What property should be treated as marital property and what property is non marital property and therefore not subject to sharing.
2. At what point and in what circumstances should non marital property become marital and be included in sharing.

The Court of Appeal held the source of funds was key not in whose names the assets were held. The Court did a fresh analysis of what assets were matrimonial and what were not. The Court held that at least 75% of the assets transferred to the Wife  in 2017 did not constitute matrimonial property and had not been “matrimonialised” .

Mrs Standish’s award was reduced from £45 million to £25 million upon the basis that she was entitled to receive 50% of the matrimonial assets which were calculated to be £50.48 million.

This reduction of the award by £20 million stands as the largest reduction in the history of UK divorce proceedings.

Mrs Standish appealed to the Supreme Court

Supreme Court Upholds the Ruling

The Supreme Court upheld the ruling of the Court of Appeal, and the appeal was dismissed. Mrs Standish’s award was thus reduced.

The aim of the Courts is to achieve a fair outcome the guiding principles are:

1. Needs
2. Compensation
3. Non discrimination
4. Sharing

This case centred on sharing and what assets should be shared and what should not. The Court distinguished marital and non-marital property.

Marital property is to be shared and the starting point for division is 50%. Non marital property acquired outside of the marriage, external inheritance or gift is not subject to the sharing principle.

The fact that non marital assets are transferred into the name of the other party are not determinative; it is the source that counts.

However, what starts as non-matrimonial property can become matrimonial property depending on how assets are dealt with over time and whether they are treated as shared.   

Learning Points from Standish v Standish

This case sets brings into focus the distinction between marital and non-marital assets,  pre-acquired wealth and inherited or gifted wealth in divorce proceedings.

The case highlights the importance of:

• Pre-nuptial and post nuptial agreements to recognise the  source of wealth, what is to be treated a marital and non-marital and to clarify financial responsibilities on divorce or separation avoiding costly legal and personal disputes upon divorce
• The need to take legal advice as part of wealth protection and planning and to review regularly
• Keeping a clear record of the origins of assets from both before and during the marriage

Other Relevant Cases to Explore

In addition to Standish v Standish, we would recommend three other cases to aid in the understanding of how the application MCA 1973 has evolved in its judicial interpretation over the years.

• White v White 2000: This case established the principle of equality in asset division
• Miller/McFarlane 2006: This case introduced the concepts of ‘sharing, needs and compensation’.
• K v L 2011: This case deals with the matrimonialisation of property

How Can I Protect My Personal Assets in Case of Divorce?

If you’d like to set out how assets should be split, we’d recommend looking at getting a pre-nuptial or post-nuptial agreement in place.

Whilst such agreements do not override the jurisdiction of the Courts in England and Wales (but recognised as valid contracts in Scotland), they are when properly drawn and executed,  highly persuasive

A pre-nuptial agreement is created prior to a marriage or civil partnership, and a post-nuptial agreement is created once the couple is married or in civil partnership.

In addition to this we’d recommend:

• Holding individual non-matrimonial assets separately (e.g. in a sole account)
• Avoiding using the asset for joint expenses, purchases or investments
• If you are to receive an inheritance or gift keep it separate and maintain accurate records of the source of funds and their investment. This will allow you to have more control over how your assets are divided upon separation/divorce.

Contact us to speak with a member of our team  or explore our family law services here.

FAQs

What is the difference between matrimonial and non-matrimonial assets?

Matrimonial assets are property, investments, savings and pensions that have been acquired during a couple’s marriage by either party and shared by both parties.

Non-matrimonial assets are those which were acquired by the individual prior to the marriage of the parties or from an external source not attributable to the marriage.

Do gifts and inheritance count as matrimonial assets?

If the gift or inheritance is received by one party alone then it would generally be considered as a non-matrimonial asset.

At what point do non-matrimonial assets become matrimonial?

It is difficult to say as the test is subjective. If assets are intermingled and used jointly over time, they may be considered matrimonial. For example the family home, even if owned by one party prior to the marriage, is often treated as being “matrimonialised”.

Can non-matrimonial assets be included in the division of assets in a divorce?

Yes. All assets irrespective of how they are held can be invaded if they are required to meet the other party’s needs or the needs of any children of the family

Does a pre-nuptial and post nuptial agreement protect non-matrimonial assets?

Yes, they certainly help. Whilst not presently legally binding in England and Wales, courts can give significant weight to pre-nuptial agreements and they are a valuable tool in wealth protection, financial planning and to avoid the financial and personal cost of proceedings if a relationship goes wrong.

What will a pre-nuptial agreement or post-nuptial agreement cost ?

As with everything it depends on the complexity of the agreement and the time we must spend in ensuring we provide you with the best possible protection. We offer an initial fixed fee meeting for £600 inc VAT at which an experienced solicitor, with expertise in this area, will take full instructions and offer bespoke advice as the best way to proceed based upon your individual circumstances. The matter will then be charged on a time spent basis at an hourly rate agreed with you in advance of further work being done.