Supreme Court judgment in Standish brings welcome clarity
The Standish Supreme Court judgment has clarified how courts view non-matrimonial and matrimonial property in divorce cases. The Supreme Court has dismissed the appeal of a wife who argued that nearly £80 million transferred from her husband for tax planning was a shared asset, subject to the ‘sharing principle’ during divorce.
Background of the Standish case
In 2017, Mr Standish transferred £77.8 million to Mrs Standish for tax planning. These assets were accumulated before their marriage and were therefore non-matrimonial property. Initially, the judge decided the assets were matrimonial and divided them unequally (60/40) in the husband’s favour, awarding the wife £45 million.
Mr Standish appealed, and the Court of Appeal ruled that the transferred assets remained non-matrimonial, reducing the wife’s award to £25 million. The Standish Supreme Court judgment has now upheld this decision.
Five key principles from the judgment
The Supreme Court has set out five clear principles:
- Distinction between asset types: Non-matrimonial property is usually pre-marital, gifted, or inherited, while matrimonial property is the product of the parties’ joint efforts during marriage.
- Sharing principle: This applies only to matrimonial property, not to non-matrimonial assets, except to meet “needs” or “compensation”.
- Equal sharing as a starting point: Matrimonial property should generally be shared equally between spouses.
- Matrimonialisation: Non-matrimonial assets can become matrimonial if both parties treat the asset as shared over time.
- Tax planning transfers: Transferring assets between spouses to save tax does not usually indicate shared treatment, so it will not normally convert non-matrimonial assets into matrimonial ones.
If you wish to learn more, you can watch a 10-minute video summary by Lord Burrows here.
Why this matters for divorcing couples
The Standish Supreme Court judgment helps divorcing couples understand what may count as shared assets. It shifts focus from legal ownership to the source of the asset and how it was treated during the marriage.
Avoiding litigation up to the Supreme Court saves time and costs. With clearer guidelines, more couples can resolve financial matters without court. This clarity helps families settle fairly and move forward with less stress.
If you are navigating separation, learn more about resolving your finances without court in our amicable separation guide.
Author Name: The Divorce Surgery
Published content by The Divorce Surgery Editorial Team. Related Posts
