Matrimonial assets and non-matrimonial assets – what are they?

Matrimonial assets and non-matrimonial assets – what are they?

The central aspect of a divorce is the process of splitting assets, property, and funds between the parties. Matrimonial assets and non-matrimonial assets are considered by the court when deciding the financial split. Dividing a couple’s assets is not a swift and straightforward process, but rather complex and stressful.

Matrimonial assets are any financial assets built up by the couple during the course of the marriage. The course of marriage is the length of time from the date of the marriage until the separation. This may include the family home, savings, pensions, investments, and other jointly owned possessions. It does not necessarily matter who earned and contributed more financially during the marriage.

As per the law in England and Wales, any asset acquired whilst married belongs to the husband and wife and is entitled to split upon divorce.

What are non-matrimonial assets?

Non-matrimonial assets are financial assets acquired prior to marriage or after separation. It is also referred to as ‘non-marital property’ and ‘extra marital property’.  Typically, non-matrimonial assets include:

• Assets, family business, or property inherited by one of the spouses during the marriage
• Assets received as a gift
• Assets already owned by the spouse before marriage
• Property solely owned by the spouse, except for family or matrimonial home

To qualify as non-matrimonial property, these assets must not have mingled or transferred to joint ownership during the course of the marriage.

What happens to matrimonial assets upon divorce?

As part of the divorce process, both parties have to decide how things will be divided and reach a fair and reasonable financial settlement. No matter who contributed more to acquire the asset, marital assets will be shared between spouses in the event of divorce or separation. It does not necessarily mean that it will be a 50:50 split, the court will decide to allocate funds depending on each party’s needs and financial resources.

What happens to matrimonial assets upon divorce?

Non-marital property is not excluded from the financial settlement. The first step in the divorce proceedings is for each party to identify both matrimonial and non-matrimonial assets. The next step is determining if the matrimonial assets are enough to meet the financial needs of the spouse. If not, extra marital property will be included in the financial statement.

For instance, if one party cannot get adequate accommodation after divorce, the court may order to award a sum from the non-marital property. However, it is very rare that non-matrimonial assets will be shared between spouses. One way to protect non-marital property is through pre-nuptial or post-nuptial agreement.

What will the court consider when dividing matrimonial and non-matrimonial assets?

The court will consider a number of factors including

• Income, investment, earning capacity, and property of each party
• The financial needs, resources, obligations, and responsibilities each party has
• The standard of living
• Duration of marriage
• Any mental or physical disability suffered by any of the spouses
• Contribution of each party to the welfare of the family

After considering all factors and the financial position of each party, the court will decide the fairest way to split assets.

Disclaimer:

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.

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