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Divorce and Asset Division: Key Lessons from a Landmark Supreme Court Ruling

The UK Supreme Court has handed down an important decision in Standish v Standish [2025] UKSC 26, providing welcome clarity on how courts should distinguish between “matrimonial” and “non-matrimonial” assets during divorce proceedings.

While the case involved eye-watering sums of money, the principles set out by the Supreme Court apply to all cases – regardless of the size of the “pot”.

The Background

  • 2005: Clive and Anna Standish marry.

  • 2017: Mr Standish transfers around £80 million in investments to Mrs Standish’s name. This was done primarily for inheritance tax planning, and with the intention that the funds would benefit their children.

  • 2020: Divorce proceedings are initiated.

During the financial proceedings, the total “matrimonial pot” was calculated at £132 million.

What the Courts Decided

  • High Court: Found that the £80 million investment transfer formed part of the matrimonial pot and awarded Mrs Standish £45 million.

  • Court of Appeal: Disagreed, stating that 75% of the assets were “non-matrimonial” (acquired before the marriage or never truly shared within it). Mrs Standish’s award was reduced to £25 million.

  • Supreme Court: Unanimously upheld the Court of Appeal’s decision.

The Supreme Court concluded that the investments:

  • Were transferred for tax purposes and for the benefit of the children, not as shared marital assets.

  • Were never “enjoyed or used” jointly within the marriage.

As such, they were non-matrimonial and not subject to the usual “yardstick of equality” which often sees assets split 50/50 unless there is a good reason to depart from that principle.

Why This Case Matters to You

Although the sums involved in Standish v Standish are far from typical, the legal guidance is relevant to many divorcing couples. This judgment makes it clearer when and why certain assets may fall outside the matrimonial pot – particularly those acquired before the marriage or kept separate throughout.

However, it’s important to note that courts still have discretion to include non-matrimonial assets if the remaining pot does not meet the needs of both parties.

Are you considering Divorce or Financial Proceedings?

Understanding what counts as matrimonial property can have a major impact on the outcome of your case. At Rubin Lewis O’Brien, we offer a fixed-fee consultation that includes written advice on the law and practical next steps – plus, in some cases, suggestions for how to resolve matters more swiftly and amicably.

To find out how the principles in Standish v Standish may apply to your circumstances, contact our expert Family Law team today.