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The treatment of premarital and inherited wealth on divorce in England - protecting assets from the sharing principle
The International Family Offices Journal
Vol. 9 - Iss. 3 pp. 27–30
Mar 2025
All professional advisers should counsel clients on the implications of transferring or co-mingling non-matrimonial assets, and extreme caution should be exercised in tax planning or other restructuring/gifting of assets with consideration of potential consequences in the event of divorce. In the event of divorce proceedings, family law practitioners, with the support of other professional advisers, must judiciously evaluate the degree to which non-matrimonial assets have been incorporated into the marital economy. The Standish case provides essential insights for arguing the status of assets based on their treatment during the marriage. The decision will be subject to further determination by the Supreme Court as permission to appeal was granted to the wife in October 2024 and the appeal is to be heard in the Spring of 2025. Subject to that determination, the ruling will significantly influence future financial remedy cases, especially those involving substantial premarital wealth. By affirming the primacy of the source of assets, and delineating the parameters for matrimonialisation, the Court of Appeal has sought to charter a course for safeguarding premarital and inherited assets while ensuring equitable division of wealth.