When a relationship breaks down, one of the most complex and emotional aspects to resolve is financial separation. A common issue arises when one spouse seeks to protect an asset they brought into the marriage or obtained after separation. These assets are referred to as non-matrimonial property. In this blog, we’ll explore what non-matrimonial assets are, when they can be ringfenced, and examine a recent case that highlights how certain assets can become ‘matrimonialised’.
At Lund Bennett Family Law, we regularly handle financial matters involving non-matrimonial assets. If you need expert advice on any aspect of a relationship breakdown, contact our team today.
What Are Matrimonial and Non-Matrimonial Assets?
Non-Matrimonial Assets: These are assets accumulated before the marriage or acquired after separation. Examples include properties, inheritances, pensions, bank savings, antiques, or family heirlooms.
Matrimonial Assets: Assets acquired during the marriage and often ‘mingled’ with family finances, such as the family home, joint savings, or shared investments. Collectively, these are referred to as the ‘matrimonial pot’.
The family court carefully examines the distinction between these categories when dividing assets during a divorce.
Can Non-Matrimonial Assets Be Ring-fenced?
Even if an asset is classified as non-matrimonial, it doesn’t mean it will automatically be excluded from a divorce settlement. The court’s primary focus is on the needs of both parties.
Income Needs: Day-to-day living costs and expenditure.
Capital Needs: The need to secure housing and financial stability post-divorce.
If the court determines that the matrimonial pot cannot meet one party’s needs, it may ‘dip’ into non-matrimonial assets to bridge the gap. Importantly, the court does not automatically split non-matrimonial assets equally; instead, it awards only what is necessary to ensure fairness.
Recent Case: RM v WP [2024] EWFC 191 (B)
This recent case sheds light on how assets can become ‘matrimonialised’. The husband owned four properties before the marriage, but the wife argued that all four should be considered matrimonial assets because the family had lived in them at different times.
The court ruled that three properties were matrimonial assets, as they had been used as family homes.
The fourth property was excluded, as the wife only lived there after separation.
However, the court departed from the standard 50/50 sharing principle. Awarding the wife 50% of all three properties would have been unfair given the husband’s contributions. Instead, the court awarded her only enough equity to meet her needs.
Key Takeaways
This case highlights that the family courts retain significant discretion when determining financial settlements. While assets may become ‘matrimonialised’ through their use during the marriage, the court can adjust outcomes to achieve fairness, particularly where one spouse brought substantial assets into the marriage.
This ruling is particularly important for individuals with pre-marital assets, as it underscores the importance of careful legal planning and expert advice.
Why Specialist Advice Matters
The distinction between matrimonial and non-matrimonial property can be complex and often requires specialist legal guidance. At Lund Bennett Family Law, we have extensive experience advising clients on financial separation, including non-matrimonial property and other aspects of divorce.
If you need tailored advice or have concerns about protecting your assets, please don’t hesitate to contact us today. We’re here to help you navigate this challenging process with clarity and confidence.