The Supreme Court Hands Down Landmark Standish Judgment: Clarifying the Line Between Matrimonial and Non-Matrimonial Property

Today marks a pivotal moment in family law with the Supreme Court handing down its long-awaited judgment in Standish v Standish. This case has been closely watched by practitioners across the country for the guidance it would provide on one of the most contentious areas in divorce proceedings: the treatment of non-matrimonial property.

Background to the Case

The dispute centred around Clive and Anna Standish, whose marriage saw the transfer of approximately £77 million from husband to wife. The transfer was part of a tax planning exercise, with the funds intended to benefit their children via trust structures. However, at the point of separation, the funds remained held solely in the wife’s name.

The wife argued that these funds had become matrimonial property over the course of the marriage and should therefore be subject to the sharing principle. The husband maintained that the money retained its non-matrimonial character, having originated from his pre-marital wealth.

After conflicting judgments in the lower courts, the case reached the Supreme Court in May 2025, following the Court of Appeal’s decision to overturn the High Court’s earlier ruling in the wife’s favour.

The Supreme Court’s Decision

The Supreme Court today dismissed the wife’s appeal, siding with the Court of Appeal.

This ruling represents a significant clarification of the law relating to “matrimonialisation” – a term the Court itself acknowledged as “new to the English language.”

Key Takeaways from the Judgment:

• Clear distinction between matrimonial and non-matrimonial assets:
  The Court reaffirmed that the origin or source of an asset is the starting point. Non-matrimonial assets include pre-marital property, inheritances, and external gifts, while matrimonial property consists of assets generated by the couple’s joint endeavours during the marriage.
• The sharing principle applies to matrimonial property, not non-matrimonial property:
  The Court was explicit that non-matrimonial property should not automatically be subject to sharing, though it remains open to redistribution if required to meet a spouse’s needs or in cases involving compensation.
• Matrimonialisation: A process, not an assumption:
  The judgment introduces the concept of matrimonialisation, referring to the transformation of non-matrimonial assets into matrimonial property. The Court stressed that this will depend on the parties’ conduct towards the asset – specifically, whether the asset was treated and used as part of the matrimonial pot.
• Focus on how the asset was dealt with:
  Key to future cases will be evidence of how the couple managed and regarded the asset – whether it was kept separate or used for family purposes.

Practical Implications

The Standish decision offers much-needed clarity for divorcing couples, family lawyers, and wealth planning professionals. It reaffirms that the source of wealth matters, and that significant hurdles remain before a non-matrimonial asset can be treated as part of the matrimonial pot.

From today, parties can expect greater certainty when seeking to protect pre-marital or inherited wealth, provided those assets are kept distinct and not used in a way that would suggest matrimonialisation.

For clients engaged in estate planning, family trusts, or large inter-spousal transfers, the message is clear: careful structuring and professional advice are critical. The judgment underscores the importance of being deliberate in how wealth is held and treated during the marriage.

Conclusion

The Supreme Court’s decision in Standish is undoubtedly one of the most significant family law judgments of recent years. While disputes over the classification of assets will inevitably continue, we now have a clearer framework for assessing when – and if – non-matrimonial property becomes subject to the sharing principle.

Given the Court’s emphasis on asset origin and conduct, this case also acts as a timely reminder of the importance of careful wealth protection and planning during marriage. One of the most effective ways to protect non-matrimonial property from later dispute is through a pre-nuptial or post-nuptial agreement.

If you would like advice and assistance in putting in place a pre-nuptial or post-nuptial agreement, please contact us. Our experienced family law team is here to help.