Supreme Court Clarifies Asset Division in Divorce – Standish v Standish (July 2025)

In July 2025, the UK Supreme Court delivered a landmark decision in Standish v Standish, clarifying how assets are treated in divorce – particularly when distinguishing between matrimonial and non-matrimonial property.

The Case

Mr Standish, a former banker, had transferred around £80 million in investments to his wife in 2017 for inheritance tax planning purposes. These assets came from wealth he built up before the marriage.

The key question was: Did this transfer mean the assets had to be shared equally in divorce?

The Supreme Court said no. It ruled that the assets largely remained non-matrimonial because they were acquired before the marriage and had not been treated as joint property during the relationship. Only a small portion, around 25%, was considered matrimonial and subject to equal sharing.

What This Means for You

·       Non-matrimonial assets (such as pre-marriage property, inheritances, or gifts) are not automatically included in a divorce settlement.

·       Simply transferring ownership for tax or other purposes does not “matrimonialise” an asset.

·       The way assets are used and treated during the marriage is key to whether they are included in the matrimonial pot.

·       The court can still use non-matrimonial assets to meet needs, especially in cases where there aren’t enough matrimonial assets to go around.

The Key Points

If you want to protect pre-marital or inherited assets:

1.     Keep them separate from joint finances

2.     Keep good records

3.     Consider a Pre-nuptial or Post-nuptial Agreement

How Parachute Law Can Help

Contact us to discuss how this ruling could affect your financial settlement in divorce or for advice on Pre-nuptial and Post-nuptial Agreements.

At Parachute Law, we make the process of drafting a Pre-nuptial Agreement or Post-nuptial Agreement clear, collaborative, and convenient.

We work with clients entirely online (via email and Zoom video calls) or by phone, so no matter where you are in England or Wales or overseas, you can access expert legal advice from the comfort of your own home.

We’ll guide you through every step — from understanding what you need, to drafting the Agreement, to ensuring it’s properly signed and witnessed.

Contact Parachute Law Today

Call: 0207 183 4547
Email: thelegalteam@parachutelaw.co.uk

For more information on dividing assets upon divorce and financial settlements click on the link below:

Article:Who Gets What in a Divorce?

For more information on Pre-nuptial and Post-nuptial Agreements click on the links below:

Article: Prenuptial Agreement in the UK: Everything YOU Need to Know Before Saying I Do

Article: Prenuptial Agreements in the UK: A Comprehensive 2025 Guide

Article: Protect Your Future: Why a Pre.nup or Post.nup Could Be One of the Smartest Legal Steps You Take

Article: Pre-nups v Post-nups: what’s the Difference – and Why You Might Need One