Matrimonial and Non-Matrimonial Property

Emma Davey, Trainee Solicitor at AMD Solicitors, looks at the distinction between matrimonial and non matrimonial property on divorce.

“When marriages break down, parties may be concerned about the impact the divorce may have on their assets, whether jointly or solely owned. Parties may be particularly concerned about how they will afford two separate homes, without having to make great compromises with regard to the living standard enjoyed by them and any children of the marriage.

In an ideal world, the parties to the divorce would mutually agree how the assets and finances in the marriage should be divided, whilst considering fairness and each other’s needs. There are many out of court resolution methods that can assist with reaching such an agreement, including mediation and collaborative law.

If the parties disagree about how assets should be divided the Court can step in.

When considering the division of assets, the court will distinguish between ‘matrimonial’ and ‘non-matrimonial property’. Matrimonial property is financial assets that one or both parties have acquired during the marriage. For example, the family home, savings and pensions. In contrast, non-matrimonial property is usually acquired by a party before the marriage, after the separation, or from a wholly external source such as inheritance.

Matrimonial assets will fall into the pot to be divided between the couple when reaching a financial settlement, with a starting point of equality, but non-matrimonial assets can be treated differently. In certain situations non-matrimonial property can be ringfenced. This is, however, subject to the exception of need, which would justify non- matrimonial assets becoming part of the divisible assets. The Court can order this to happen if there would otherwise not be enough money to meet the housing and financial needs of the parties and any children. The Court will also consider factors such as the duration of the marriage when considering whether non-matrimonial assets should be shared between the parties, and the extent to which any non-matrimonial property has been mingled with other family resources.

The family home will usually be treated as matrimonial property, and will hold a central place in proceedings, even if it was purchased prior to the marriage by one party, and even if it continues to be held in the sole name of one party. Although the Court can have regard to contributions that each party has made to the marriage, including the source of the funds used to purchase the property, these contributions are only likely to be relevant where there the needs of the parties can be properly met by the available funds.

Financial arrangements can be complex and are unique to your circumstances. Our team of family solicitors have years of experience in divorce and financial proceedings. For confidential advice on resolving finances on divorce, including a free initial 30 minute consultation with one of our family specialists, please contact 0117 962 1205.