What Does the Family Court Consider a Matrimonial Asset?

This question of what the Family Court consider a ‘matrimonial’ asset to be is important in financial remedies cases. It was considered by the Court of Appeal in the case of Standish v Standish [2024] EWCA Civ 567. The Court set down a number of guiding principles, useful to lawyers and litigants in the Family Court.

Why does it matter whether an asset is matrimonial?

In many cases, a divorcing couple’s assets are only enough to cover their needs, and the needs of any children. In those cases, the Court will focus on how this can best be achieved.

However, where a divorcing couple’s assets are more than meet their needs, the Court will need to consider how to divide them fairly. One consideration in how to do this is whether the assets are matrimonial. They will then be subject to the sharing principle.

What is a matrimonial asset?

In general, matrimonial assets are those built up during the marriage through the work of both parties. This work may include home-making as well as earning money directly. In general, non-matrimonial assets are those received by one party from outside the marriage. For example, they may include assets that have been brought into the marriage, inherited wealth, or gifted wealth received during the marriage that has been kept separate.

The challenge is that detailed evidence and arguments relating to  these issues carries legal costs and takes up Court time. This money and time may become disproportionate to the issues themselves. The Court may therefore apply a broad-brush approach.

The Court of Appeal in Standish v Standish emphasised that where the asset came from is more important to whether it is matrimonial than in whose name it is held. This is because the name in which an asset is held  is “not a good guide to fairness”. To put it simply, all assets may be in one spouse’s name, but this does not mean they should keep them upon divorce.

Can non-matrimonial property become matrimonial property?

Non-matrimonial property can become matrimonial property due to the way it has been dealt with during the marriage, which is referred to as  matrimonialisation. The Court of Appeal was clear that the concept of matrimonialisation is not to be broadly applied. This is in part because of the confusion it may create in applying the law.

Will matrimonial property always be divided equally?

The Court of Appeal decided that matrimonial property should not always be divided equally. Each case will be considered on its own facts. Fairness is always the key goal.

To understand how these considerations could impact your case, it is important to obtain specialist advice.

For advice on any family or divorce matter, please contact our Partner and Head of Divorce and Family Law, Tracey Dargan.

Please note the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.