The Supreme Court’s ruling in Standish v Standish may be the most important divorce ruling about financial settlements in 20 years.
In simple terms, It helps answer this: if you transfer assets to your partner to save tax — are they still “yours,” or do they become “shared” if you later split up?
The case shines a spotlight on how judges decide what counts as matrimonial assets (shared) versus non-matrimonial assets (yours alone) — and how good records, clear intentions, and smart planning can help protect your wealth.
Pre-nup and Post-nup agreements
Key take-aways from Standish v Standish
- Transfers made for inheritance tax reasons don’t automatically become shared assets
- Courts care about where the money originally came from (not just whose name it's in)
- Pre-nups and post-nups help but aren’t legally binding — they guide, not decide
- A paper trail (emails, advice letters, trust drafts) can protect you and lower legal bills
- Intent matters: if you didn’t intend to share it, make that clear
What counts as matrimonial vs non-matrimonial assets?
The Supreme Court said: just because something is put in a spouse’s name doesn’t mean it becomes a shared asset. The court looked at where the money came from asking was it earned before the marriage? Gifted? Inherited?
In Standish v Standish, Clive Standish transferred £78m to his wife Anna as part of Inheritance Tax Planning for their children.
Ultimately the court ruled 75% of it stayed his alone because it came from work before they married and he didn’t mean for it to become shared.
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Asset Source | Matrimonial or Not? |
|---|---|---|---|---|---|---|
| 1 | johnjbloomfield | 15/07/2025 10:33 | johnjbloomfield | 15/07/2025 10:33 | Built before relationship | Usually non-matrimonial |
| 2 | johnjbloomfield | 15/07/2025 10:34 | johnjbloomfield | 15/07/2025 10:34 | Inheritance or gifts | Usually non-matrimonial |
| 3 | johnjbloomfield | 15/07/2025 10:34 | johnjbloomfield | 15/07/2025 10:34 | Joint savings or earnings | Usually matrimonial |
| 4 | johnjbloomfield | 15/07/2025 10:34 | johnjbloomfield | 15/07/2025 10:34 | Business sale proceeds | Depends on intent + timing |
| 5 | johnjbloomfield | 15/07/2025 10:34 | johnjbloomfield | 15/07/2025 10:34 | Trusts or tax-planning | Depends — clear documentation helps |
| 6 | johnjbloomfield | 15/07/2025 10:35 | johnjbloomfield | 15/07/2025 10:35 |
How tax-planning transfers are treated after Standish
Considering transferring wealth to a spouse to save tax? (in this case inheritance tax) That won’t always mean it’s now theirs or a joint asset in a divorce. The Supreme Court said the source of the money and the intent at the time of transfer matter most.
In Standish vs Standish, Clive moved £78m to Anna so the money would be free of UK inheritance tax, using her non-dom status. He intended it to later go into trusts for the kids. But the trusts were never set up — and the paper trail saved him.
Pre-nup and Post-nup agreements
In England and Wales, prenuptial and postnuptial agreements aren’t legally binding.
But judges will consider them especially if they’re fair and both partners took independent legal advice. They help show what each partner intended.
Frequently Asked Questions: Pre and Post Nuptial Agreements
Will a pre-nup protect my business?
Possibly — especially if it’s clear, fair, and signed with legal advice.
What if my partner didn't pay for their own legal advice or used my lawyer?
They could later argue they were under pressure or didn’t understand what they were signing making it more likely a judge would disregard the agreement.
Can we update a pre-nup later?
Yes. That becomes a “post-nup” ultimatley it seems it’s all about documenting the intent and understanding of both parties
Do I need a pre-nup if we’ve lived together for years?
Whether you need or want a pre-nup is entirely down to your own personal wants and beliefs, however it’s important to remember that a period of unmarried cohabiting doesn’t really count for anything in a divorce, it’s your situation at the point of marriage that matters.
Practical steps to protect your wealth
- Take advice before gifting or transferring large assets
- Clearly state your intent in writing, ideally with adviser input, the advice reports we issue may prove crucial in proving intent
- Update your wills and trusts if your plans change
- Work with an adviser to consider all available strategies to mitigate IHT and protect assets in case of divorce, there may be simpler and safer option you had not considered.
- Discuss pre-nups/post-nups if wealth is unequal or blended-family risk exists
Frequently Asked Questions: divorce, tax-planning, and wealth protection
Is a gift during marriage always shared in divorce?
Not always, intent and documentation matter, as well as how the asset is practically used later.
What if my spouse never gave the money back?
It may still be seen as “yours” if the transfer had a tax-saving purpose. And it avoids being seen as a matrimonial asset for other reasons.
Will this change how judges treat trusts?
Yes, the courts will now be more focused on the source, intents and use of the Trust rather than simply seeing it as a financial resource.
Should business owners use pre-nups?
Definitely consider it, especially if the business was established before the marriage and your spouse has played no role in it – it may add a layer of protection in the event of a divorce.
Can I move money to my partner and still keep it mine?
Possibly — with evidence that it was for tax-planning, not gifting.
This article is based upon our current understanding of the latest decision and should not be considered personal advice.
Tax planning is not regulated by the financial conduct authority.
If you would like to read the judgment in full it is available as a PDF from the court.
