What is a non-matrimonial asset?

Non-Matrimonial assets update; ‘matrimonialised’ property

During a relationship breakdown, there are many things to consider including the financial separation. An issue that often can arise is when a spouse wants to protect an asset they have either brought into the marriage or obtained since separation. These are referred to as non-matrimonial assets. This blog will explain in more detail what non-matrimonial assets are and when they can be ringfenced. It will also dive into a recent case which explored the extent to which various properties could become ‘matrimonialised’.

Maguire Family Law are specialist family solicitors and handle financial separation matters involving non-matrimonial assets on a regular basis. If you need advice relating to family matters please get in touch with our team today.

Matrimonial & Non-Matrimonial Property: What is it?

It is common for husbands and wives to seek to keep assets they accumulated before the marriage or after the separation. The types of assets often include properties, inheritance and pensions. However, it can extend to bank savings accounts in some circumstances, antiques or valuable family heirlooms.

By contrast, there is ‘matrimonial’ property, the most common assets will be the family home. However, any asset which could be argued to have been ‘mingled’ with the family finances could be considered a matrimonial asset. The total of the matrimonial assets is often referred to as the ‘matrimonial pot’.

When can Non-Matrimonial Property be ringfenced?

Even if an asset is considered to be non-matrimonial, this does not automatically mean that the spouse which owns the assets will not have to share the asset during a divorce.  The primary consideration when the family court is determining whether an asset can be classed as non-matrimonial will be the needs of the parties going through the divorce. The family court will consider their income needs, in other words their expenditure, and their capital needs, which includes the needs to rehouse themselves.

Once the court has assessed the needs of the parties, if it considers that the needs cannot be met through the matrimonial pot it will consider any non-matrimonial assets. The court would not automatically split a non-matrimonial asset 50/50 but ‘dip’ into the asset to the extent that is required to meet the parties’ needs.

Recent Case Law

The recent case of RM v WP [2024] EWFC 191 (B) considered the issue of to what extent a property can be ‘matrimonialised’. The marriage in question was a long marriage in which the husband owned 4 properties prior to the marriage. The wife sought to argue that all 4 were actually matrimonial assets as they should all be considered as the family home as the family had lived there at various points.

The family law judge agreed that 3 of the properties should be considered as matrimonial assets but the other should not as the wife had only lived in it following the separation. The judge then had to consider how to fairly split the assets. The starting position for such assets would have been the sharing principle, or in other words a 50/50 split.

The family court considered that to give the wife 50% of the equity of all 3 properties would have been unfair. The court decided that the wife would only be awarded enough equity to meet her needs as to give her more would be unfair on the husband in light of his contributions.

What does this mean going forward?

The family court was keen to stress that this was not the start of a new concept that assets can be ‘unmatrimonialised’ but rather that the court can use its discretion to depart from the sharing principle if an equal division of assets would be unfair. On that basis the court departed from the sharing principle.

The case highlights that the family courts still have a high degree of discretion in order to achieve what it considers to be the ‘fair’ outcome in financial remedy matters. The ruling could be important to spouses who have substantial assets prior to the marriage which become matrimonialised. As such it will be interesting to see how courts handle such situations going forward.

Summary

The concepts of matrimonial and non-matrimonial property are ones which often require specialist advice from divorce lawyers to understand any claims over them.

Maguire Family Law have extensive experience in separation matters relating to non-matrimonial property and all other aspects of a relationship breakdown. Our divorce solicitors advise on all aspects of a relationship breakdown and should you need any advice, please do not hesitate to contact us today.