At Kidwells Solicitors, we are committed to making the law more accessible and transparent. In this edition of Straight Talking Law, we explored the ground-breaking family law case Standish v Standish – a ruling that has captured attention across the legal profession and beyond.
Known by some as the “£78 million question,” this case isn’t just about high-profile wealth. It’s a landmark decision that has significant implications for how the courts now view non-marital assets in divorce proceedings. And while the case involved substantial wealth, its principles are now influencing family law more broadly, especially when it comes to what constitutes a fair division of assets during a marriage breakdown.
A New Era for Divorce Law?
So, why has Standish v Standish created such a stir?
At the heart of the case was the question of whether non-marital wealth – such as inherited money or family-owned businesses – should be shared equally upon divorce. Historically, UK divorce law has leaned toward the principle of equality: the idea that both parties are entitled to half of the marital pot, regardless of their financial contributions.
But this ruling marks a notable shift. The court in Standish clarified that wealth accumulated outside the marriage – either before the marriage or received as inheritance – should not automatically be considered part of the divisible marital assets. Instead, these types of assets can be “ringfenced” and protected from division, provided certain conditions are met.
What Are Non-Marital Assets?
Non-marital assets are typically defined as assets acquired:
- Before the marriage;
- As a gift or inheritance;
- Through a family trust or legacy;
- Without being mingled or used as joint marital property.
Traditionally, courts would still sometimes include these in divorce settlements if it was deemed necessary for fairness, particularly where children were involved. However, the Standish ruling suggests a more cautious and considered approach moving forward.
Key Lessons from Standish v Standish
- The Protection of Inherited Wealth
In this case, the husband had access to significant family wealth – around £78 million. The bulk of this was acquired through long-standing family trusts and inheritance, rather than during the marriage. Importantly, the court found that this wealth had been carefully kept separate and was not used to fund the marital lifestyle.
The court decided that the wife was not entitled to an equal share of these assets, as they fell outside the scope of marital property. This reinforces a key message: inherited wealth, if kept separate and unmingled, is not automatically up for division. - Financial Autonomy Is Valid
Another important takeaway is the principle of financial autonomy. The courts recognised the husband’s right to manage his inheritance and preserve his family legacy. The judgment suggests that parties to a marriage who maintain independent financial arrangements – whether through trust structures or ringfenced accounts – may be able to preserve their non-marital assets, provided they are not used to fund the joint lifestyle.
This recognition of financial autonomy is likely to influence other cases, especially where one party enters the marriage with significant personal wealth. - Needs-Based Adjustments Still Apply
While the court limited the wife’s access to the inherited wealth, it didn’t leave her empty-handed. The ruling emphasised that needs-based considerations remain paramount – particularly where children are involved or one party is financially dependent.
In this case, a provision was made for the wife to meet her needs and maintain a standard of living that was reasonably comparable to what she enjoyed during the marriage. This demonstrates that fairness remains a guiding principle, even as the court shifts away from automatic equal division. - Implications for Prenuptial and Postnuptial Agreements
This ruling also highlights the importance of clear financial planning in relationships. While prenuptial agreements have historically been viewed with caution in UK law, they are now given greater weight – especially when both parties receive independent legal advice and the agreement is entered into freely.
The Standish ruling adds momentum to the growing trend of protecting family wealth through legally recognised agreements. This is especially relevant for those entering second marriages, or those who wish to preserve legacies for children from previous relationships.
Why This Matters for High-Net-Worth Individuals
For those with significant wealth – whether inherited, earned, or held in family trusts – the Standish ruling is a game-changer. It reinforces the idea that non-marital wealth should not be automatically pooled into the marital assets.
This gives reassurance to families who wish to pass wealth down through generations without fear that a future divorce will see it divided. It also allows individuals to feel more confident in protecting their personal financial legacy.
That said, the case also serves as a reminder that keeping finances separate is critical. Once non-marital assets are used to fund the family home, joint holidays, or shared investments, they may lose their ringfenced status.
Broader Impact on Divorce Settlements
Although Standish involved a high-net-worth family, the legal reasoning behind the decision could have broader implications:
- Fairness is still central: Courts will continue to make decisions based on what’s fair and reasonable for both parties.
- Each case is unique: Factors such as the length of the marriage, the contribution of each party, and the presence of children will continue to play a role.
- Non-marital assets are not automatically excluded: If they have been used to support the marriage, they may still be considered in settlement negotiations.
This ruling does not mean inherited or gifted wealth is beyond reach entirely – it simply means the courts will approach those assets with greater caution and nuance.
What Should You Do If You Have Non-Marital Assets?
Whether you are about to get married, already married, or facing a divorce, now is the time to think carefully about your finances. Here are some practical tips:
- Keep Assets Separate
If you wish to protect certain assets, avoid mingling them with joint finances. For example, don’t use inheritance funds for the family home or to pay for shared expenses unless you’re prepared for them to be considered marital property. - Consider a Prenuptial or Postnuptial Agreement
These agreements can provide clarity and protection for both parties. While not legally binding in the UK, courts are increasingly giving weight to well-drafted, fair, and transparently agreed prenups and postnups. - Document Financial Decisions
Keep clear records of financial contributions and decisions, especially where trusts, gifts, or inheritance are concerned. This can help evidence the ringfencing of assets in future disputes. - Take Legal Advice Early
The earlier you get advice, the more options you have to protect your position. Whether you are setting up a trust, inheriting wealth, or contemplating divorce, a qualified solicitor can help you make informed decisions.
Final Thoughts
The Standish v Standish ruling represents a major development in UK family law. It challenges the assumption that all assets are shared equally in divorce and highlights the importance of respecting personal ownership and inherited wealth.
At the same time, the courts continue to place fairness at the heart of every decision. The needs of both parties – and any children – will always be a priority.
This ruling may encourage more families and individuals to plan ahead, protect their financial autonomy, and seek legal advice. For legal professionals, it offers a fresh lens through which to assess complex asset structures. For the public, it serves as a powerful reminder that divorce settlements are not one-size-fits-all.
At Kidwells Solicitors, we are here to support individuals through every stage of this journey – from asset planning to separation. If you would like advice on how this ruling might affect your situation, or help drafting protective agreements, contact our family law team for a confidential consultation.
