BLOGS

In essence, a matrimonial asset is a financial asset that is obtained during marriage. For example:

• family home

• pension

• savings  

Contrastingly, a non-matrimonial asset is a financial asset that is obtained prior to marriage or after the parties have separated. For example:

• inheritance

• family business

• property purchased prior to marriage or after marriage 

It is important to identify if an asset is matrimonial or non-matrimonial because when spouses divorce the assets will be divided between them. The division of assets will be formalised via a financial settlement, so the arrangement needs to be fair for both spouses!

It is common for there to be a debate as to which assets should be included in the financial settlement. The matrimonial assets will automatically be shared between the spouses during divorce, and you will need to divide the finances acquired whilst you were married, even if it is income from a job that you worked.

Does That Mean My Partner Will Get Half of Everything I Own? 

This does not necessarily mean that your partner will get half of everything you own, as the way in which matrimonial assets are divided will depend on the financial situation of each spouse. The law necessitates that each spouse is entitled to a fair settlement that meets their financial needs. For example: 

• if you have a pension that has a cash equivalent value of £100,000, but your partner has always been unemployed, you may have to give up a large sum from your pension pot to ensure they are adequately provided for.

• if you have a pension that has a cash equivalent value of £50,000, and your partner has a pension that has a cash equivalent value of £50,000, you may not have to give up any money from your pension pot, as your partner is already adequately provided for.*

*CAUTION is warranted in respect of pensions.  The face value of a pension may not always show the true extent of its value and therefore, often, a Pensions Actuarial Report would be advised.  

The division of non-matrimonial assets is more complex. It is possible to ask for non-matrimonial assets to be excluded from a financial settlement, but this request may not be granted if the non-matrimonial asset was somehow used in your marriage. For example: 

• if you received an inheritance from a family member and then used this as the deposit for the family home, without separating and earmarking the deposit, then the same would form part of the matrimonial pot. 

The court may rule that non-matrimonial assets need to be included in the financial settlement because there are not enough matrimonial assets to provide for your ex-spouse or children.

How Do the Court Decide Who Gets What?

The court will consider numerous factors when determining the division of assets, such as the income that both parties are in receipt / likely to be in receipt of in the future, the ages of the parties, any physical or mental disabilities that the parties have, the contributions that each of the parties have made to the family home. It is important to note that these criteria are equally important, and their relevance will be determined on a case-by-case basis. Please be honest about your financial situation, failing to give adequate disclosure may frustrate your case.

The Take-Away?

I usually go for a battered cod, large chips, and curry sauce…but you should go with Pardoes Solicitors so that we can help you secure a financial settlement that is advantageous to you!