Divorce affects not only the couples going through with the process but almost everyone close to them: children, family, in-laws and friends, the list is endless. Divorce has financial repercussions, not only in present circumstances but can do for years in the future too, if not dealt with properly.
In this article I talk briefly about the difference between matrimonial and non-matrimonial assets. It will have a huge impact on your Financial Settlement after the divorce.
What is the difference between matrimonial and non-matrimonial assets?
Basically, matrimonial assets are those which have been purchased by you and or your spouse during the marriage and non-matrimonial assets are acquired by you and/or your spouse either before you got married or after your divorce.
Matrimonial assets would include things like the family home, pensions and savings and it does not really matter who put the money forward for these assets or who saved up the wealth. When you are married, the law in England and Wales considers any assets you acquire during the marriage as also belonging to your husband or wife. So, for example, if you contribute towards a pension during your marriage, your spouse is entitled to a share of it.
Non-matrimonial assets are things like inheritance, family businesses and any property that was purchased before the marriage or after separation.
Why does it matter whether assets are matrimonial or non-matrimonial?
It matters when it comes to divorce and separation because both types of assets will need to be reviewed and divided between the couple. These are then listed and formalised as a Financial Settlement which must be fair and reasonable for both parties. It is advisable to talk things through before you embark on dividing the assets, as part of the divorce proceedings, and deal with any uncertainties around inheritance received prior to the marriage and other assets which are likely to cause a dispute going forward.
What not to include in the Divorce settlement?
Matrimonial assets will be divided between you and your spouse during divorce. This means you will need to divide the finances that were acquired while you were married, even if the money was income from your job or inheritance from your family.
Matrimonial assets will not be divided 50/50. It really depends on the financial situation of each person. Essentially the law in England and Wales requires each person to receive a fair settlement that meets their financial needs. So, if you need to give up a third of your pension pot to ensure your ex is provided for then that is what the Court will rule.
Non-matrimonial assets are a little more complicated. Often you can ask for them to be excluded from the Financial Settlement. But this request might not always be granted. This might be because the non-matrimonial asset was used somehow in your marriage. For instance, if you used some of your inheritance money as the deposit for the family home then the family home will still be considered a matrimonial asset.
Or it might be that the matrimonial assets do not sufficiently provide for your ex, or the welfare of your children. If so, the Court can rule that non-matrimonial assets be included in the Financial Settlement too.
Protecting your assets
Pre-nuptial Agreements can be used to protect your assets from a future Divorce Settlement or a Post-nuptial Agreement if you are already married. These agreements are not always legally binding in England and Wales, but the Courts will take them into serious consideration when determining what should be included in the Financial Settlement.
Next Steps
If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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