Dividing Matrimonial and Non Matrimonial Assets on Divorce

Emma Lawler is a Partner in our Family Law Team, specialising in financial remedy negotiations upon divorce. Here she outlines the two main principles which apply when dividing matrimonial and non matrimonial assets.

There are two main principles which apply to how your assets are divided in a divorce - 'needs' and 'sharing'. As part of the fact-finding process I go through when establishing who owns what and how much the assets are worth, I will also need to know where the money / assets came from.

I will often need to spend time with clients talking through the history of the relationship and possibly the history of a particular asset (whether it is land, a farm or a business). Part of this exercise is to try to establish which assets are 'matrimonial' - built up during the course of the marriage as a result of one or both parties' endeavours, or 'non matrimonial' - introduced from an external source such as inheritance). Just because an asset is owned in one spouse's name does not mean it is non matrimonial - and an asset placed in joint names does also not automatically become matrimonial. 

The general approach in a divorce is that the matrimonial assets should be shared equally. Non matrimonial assets are usually only divided up if there isn’t enough money in the matrimonial assets to provide for your 'reasonable needs'.

What are reasonable needs?

Ultimately this will be a point to try and negotiate. Of course, one side is likely to say they need a more expensive house or higher income than the other side. As part of your divorce you are likely to be asked to provide a list of your monthly outgoings and to try to estimate what they might be in future once your divorce is finished. You will also need to look at houses which you would say are suitable for you. It is important to take time making sure all of this information is accurate. We also have to think about costs of moving and furniture and other costs such as needing to buy a new car. The more you can justify your monthly income and capital budget, the more difficult it is for the other side to challenge it. If you have had a high standard of living during your marriage, it is more likely that your needs will be generously interpreted. However, you cannot expect to simply duplicate the lifestyle you have had previously.

Assessing whether assets are matrimonial or non matrimonial and making sure your needs are well presented is an essential part of the work I carry out with all my clients to give you the strongest platform possible to try to negotiate a fair settlement with their spouses.

Should you wish to discuss your circumstances with Emma or find out more about her, please see here.