Put a Ring-Fence on It: Protecting Assets in Divorce

A common misconception within divorce proceedings is that assets owned individually will not be subject to distribution, where they were owned prior to marriage. However, recent case law has clarified instances where assets may become matrimonialised and hence part of the marital pot of assets subject to division.

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

The distinction between a non-matrimonial and matrimonial asset can be critical in financial proceedings, as only the latter will be subject to the sharing principle. The sharing principle dictates that upon divorce, a 50/50 split of assets should always be the starting point for the distribution of assets between the parties. The 2025 case of Standish v Standish set out to clarify the distinction between the two.

In this case, the Supreme Court clarified how assets become matrimonialised when they transform from a non-matrimonial asset to a matrimonial asset, becoming subject to the sharing principle.

A non-matrimonial asset will often be determined from its source and treatment, rather than from a title alone. For example, if the property is in one party’s sole name, the Court will consider how the parties have dealt with the asset over time and whether it has been treated as a shared asset, in which case it is likely to have become matrimonialised. This is most likely to be seen in long marriages. This is an important distinction because in the case of Standish v Standish, the Courts confirmed that the sharing principle would not apply to non-matrimonial property. This concept applies equally across property, capital and pensions.

 When do non-matrimonial assets become matrimonial?

The Courts raised that whilst non-matrimonial assets are not subject to the sharing principle, the assets may become matrimonialised. Although the case of Standish was a multi-million-pound financial dispute, the same principle applies to financial proceedings of an average value.

However, the key difference will be where it is a needs-based case. Section 25(1) of the Matrimonial Causes Act 1973 requires the Court to have regard to all the circumstances of the case, including the financial needs of both parties.

Where the matrimonial pot is not large enough to meet the needs of both parties, the Court will consider whether both matrimonial and non-matrimonial assets should be distributed. This could mean that some assets owned prior to marriage may remain open for distribution where there are not enough matrimonial assets to meet the needs of both parties.

How can Redkite Solicitors assist in the protection of my non-matrimonial assets?

There are multiple ways in which you can ensure that your non-matrimonial assets do not risk becoming matrimonialised.

Redkite can offer you peace of mind by assisting with the creation of a Pre-Nuptial Agreements in which the parties to set out what will be deemed a non-matrimonial asset and hence not subject to sharing. Whilst this agreement is not strictly legally binding, the Court will place significant emphasis upon its contents.

If you are already married and want to protect your assets, Redkite can also assist with a Post-Nuptial Agreement. This offers the same level of protection as a Pre-Nuptial Agreement, but it is drafted after marriage.

To relieve any tension in the arrangements of financial protection, we have collaboratively trained solicitors who will be able to draw up financial agreements by joint instruction. This offers a harmonious approach by helping you reach the best solutions together by agreement, rather than instructing separate solicitors.

If you or a loved one require guidance and would like to discuss the process or costs involved in making these arrangements, please contact our family team here at Redkite Solicitors.

One of Redkite’s qualified family law solicitors will be happy to advise and provide you with a quote.