The Supreme Court will announce its ruling on the ‘pivotal Standish v Standish case on Wednesday 2nd July. The ongoing saga, which has worked its way through the courts system, will reach a conclusion with a decision which is likely to shape the future understanding of pre-marital assets, and transfers between spouses are treated n divorce.
The case will rule on whether a £77m transfer from husband to wife during the marriage should be classified as a matrimonial asset – or ringfenced as part of long-term estate planning after the money was never finalised into a trust.
In October 2022 the High Court initially deemed the transferred assets as matrimonial property, awarding Anna £45m. However, the Court of Appeal reduced this award to £25m in May 2024, emphasising the importance of the wealth being created pre-marriage – believed to be the largest reduction on appeal from a divorce award.
The Supreme Court will now rule on Anna Standish’s appeal.
“This case will be a key Supreme Court decision in family law. We have seen, in line with societal change, the growing importance and regularity of nuptial agreements and more recent family court decisions, that pre marital or non matrimonial wealth will be of the utmost importance in a big money case where the court is looking at sharing arguments. The Court of Appeal has said a narrow approach needs to be taken when considering whether assets, originally in one party’s name become ‘matrimonialised’, and it will be interesting to see if the Supreme Court agrees with this on Wednesday and upholds the £20m reduction in award – heralding a victory and making a clear statement for the wealthier spouse.
said Miranda Fisher, Family Partner at Charles Russell Speechlys.
“Notwithstanding the quantum of the reduction in award, given the transfer was made in 2017, only some three years before the divorce was initiated and following tax planning advice, Mrs Standish may have a more difficult argument to run to convince the court otherwise although they may review the quantum of her award.”
Caroline Holley, Partner at Farrer & Co, added
“Standish may be a case involving the super wealthy, but unusually it is also a case where the principle involved is relevant to everyone. Whilst in the vast majority of divorces in England and Wales, the division of finances will be determined by the needs of the spouses, in those cases where there is more money than is needed to meet those needs, the court’s approach is to share the matrimonial assets between the spouses. However, it can be difficult to establish what is in the matrimonial “pot” to be shared, often leading to significant and costly disputes. Wednesday’s judgment could provide welcome clarity on when assets that one spouse brings to a marriage will be “matrimonialised” and fall into the matrimonial pot and when they will not.
“In providing clear guidance on when assets that are non-matrimonial in origin might be considered matrimonial and therefore shared, the Supreme Court will make it easier for couples to understand the implications of their decision making during a marriage. The Supreme Court’s decision on Wednesday will, either way, provide welcome clarification on how assets might become “matrimonialised”; rendering the consequences of financial decisions made during a marriage clear. This clarity should allow couples to have greater control, and ensure that actions they might take during a marriage do not have unintended consequences.”
Today’s Family Lawyer will bring you the decision and commentary following confirmation of the Supreme Court’s ruling.
