On 2 July 2025 the Supreme Court handed down its judgment in the case of Standish v Standish whereby a unanimous decision was reached to dismiss the appeal of Mrs Standish following the Court of Appeal’s decision to classify £77.8m as non-matrimonial property – money that was transferred to Mrs Standish in 2017 by her ex-husband Mr Standish as part of a tax planning scheme.
Key Facts
The parties were married in 2005 and separated in 2020. There were combined assets worth approximately £132m at stake however a significant proportion arose from Mr Standish’s pre-marital wealth. In 2017 Mr Standish transferred investments worth £77.8m into Mrs Standish’s name to establish trusts that would benefit their two children.
The position held by Mrs Standish was that the funds should be treated as ‘matrimonialised’ and that she was entitled to a proportion of them under the ‘sharing principle’. In the High Court it was held that, pre-transfer, the 2017 assets had been non-matrimonial but had become matrimonial by virtue of the transfer and therefore the ‘sharing principle’ was to be applied. Mrs Standish was awarded £45m under a 60/40 split in Mr Standish’s favour. Both parties appealed.
The Court of Appeal reversed the decision, holding that 75% of the 2017 assets were not matrimonial. Mrs Standish was subsequently awarded £25m which is the largest ever reduction of a divorce award ordered by the English court.
Mrs Standish proceeded with an appeal to the Supreme Court arguing that the Court of Appeal placed too much weight on Mr Standish being the primary source of the 2017 assets. Mrs Standish contended the transfer of funds was effective as a gift to her.
Supreme Court Ruling
The Supreme Court unanimously dismissed Mrs Standish’s appeal, upholding the decision of the Court of Appeal. Given 75% of the 2017 assets were classified as non-matrimonial, and were subsequently to be retained by Mr Standish, the other 25% was considered matrimonial and subject to division upon divorce meaning each party retained half of the 25%.
Key Principles
In dismissing Mrs Standish’s appeal, the Supreme Court outlined five principles relevant to how assets are divided in divorce, particularly in high net worth cases:
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- There is a conceptual distinction between non-matrimonial property and matrimonial property. Non matrimonial property is typically pre-marital property brought into the marriage by one of the parties or property acquired by one party by external gift or inheritance. Matrimonial property comprises the fruits of the marriage and the parties’ joint efforts.
- The ‘sharing principle’ was restricted to matrimonial property only which the courts have been reluctant to say previously. However, non-matrimonial property can still be subject to ‘needs’ or ‘compensation-based’ cases which were not in issue on this appeal.
- The starting point for matrimonial property is that it should be shared on an equal basis, though there may be justified departures from that position.
- The concept of ‘matrimonialisation’ was endorsed. The term was considered a useful shorthand to describe the process of non-matrimonialised property becoming matrimonialised which it was determined would happen if parties consistently treated the asset as shared between them.
- A transfer of assets between spouses for tax efficiency will not normally show an asset is being treated as shared.
Whilst this ruling provides clarity on how non-matrimonial assets are treated in high value divorces it may also have wider implications for all divorcing couples with regard to the division of assets.
The judgment strengthens the protection of non-matrimonial property including inheritance, gifts and pre-marital wealth with the key consideration being how the assets are treated by parties throughout the marriage. Non-matrimonial property can become matrimonialised over time, and subsequently subject to the sharing principle upon divorce, by way of day-to-day financial decisions and therefore recording intention behind financial transactions has become more important.
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Our experienced team of family solicitors understand the significant impact that the division of matrimonial assets during a divorce can have on your future. The ruling in this case highlights, particularly where there is a financial imbalance between spouses, the importance of seeking legal advice throughout divorce proceedings.
The decision also highlights the importance of pre and post nuptial agreements for individuals looking to protect wealth from a sharing claim upon divorce.
To discuss these matters, or to find out how we can assist you further, please telephone us on 01494 451355 (High Wycombe office), 01628 958445 (Marlow office) or 020 3443 9576 (City of London office).