When considering financial settlement in divorce proceedings in England and Wales, it will often be necessary to distinguish between matrimonial property and non-matrimonial property.
Matrimonial property
Matrimonial property is likely to include all capital that has been accrued during a marriage as a result of the parties' joint efforts. It is often described as property which is the financial produce of the parties 'common endeavour'. Assets easily identifiable as falling within this category are savings, policies, pensions and other assets for which contributions have been made during the marriage and family businesses that have been established and built up during the marriage.
It is important to note, however, that these assets could equally fall outside the definition of matrimonial property. Ordinarily, the relevant factor to determining whether property is matrimonial is when it was acquired. If its acquisition predates the date when the parties began cohabiting (or their marriage, if earlier) then it is possible the asset will be considered non-matrimonial rather than matrimonial. As an example:
- X and Y began living together in 1999, married in 2000, and separated in 2015. X set up a bank account in her sole name in 2005 and, over time, added to it funds that had been built up during her marriage to Y. X used these funds to purchase a second property in her sole name, in 2010. This property is likely to be considered matrimonial because the account was set up after the couple began living together and its balance was sourced from funds built up during the marriage.
- X and Y began living together in 1999, married in 2000, and separated in 2015. X set up a bank account in her sole name in 1990, which contained funds that had been built up prior to her living with Y. X did not touch this account for many years, and its funds were kept entirely separate from the marriage. X used these funds to purchase a second property in her sole name, in 2010. This property could be considered non-matrimonial since it was funded from assets held prior to the relationship and it had been kept separate from the matrimonial capital.
Matrimonial property can be difficult to define but will frequently be a relevant issue on divorce.
If you are contemplating divorce, or have questions around matrimonial property, it is important that advice is sought from solicitors who routinely deal with matrimonial/non-matrimonial property in their caseload. Please contact our Family Law team and we would be happy to assist.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.