Standish v Standish Supreme Court Ruling: What It Means for Divorce Settlements in the UK

On 2 July 2025, the UK Supreme Court handed down its final decision in Standish v Standish—a case that has become the definitive guide for dividing assets in a divorce involving pre-marital wealth and large transfers between spouses.

If you or your partner brought significant assets into the marriage, this case will shape how the courts assess what is included in your divorce financial settlement.

What was the case about?

Clive and Anna Standish married in 2005. Clive, a wealthy financier, brought substantial pre-marital assets into the marriage.

In 2017, he transferred £80 million to Anna as part of a tax planning exercise intended to benefit their children. The planned trust was never created, and the marriage later broke down.

Anna argued that the money should be treated as matrimonial property and split. Clive claimed it remained his non-matrimonial wealth.

 What did the Supreme Court decide?

The Supreme Court unanimously ruled in Clive’s favour. The Court confirmed:

• The source of the asset is the key factor: because the money came from pre-marital wealth, it retained its non-matrimonial status.
• The transfer was made for tax and estate planning, not to share ownership.
• Just because an asset is transferred or legally owned by the other spouse does not automatically make it part of the marital pot.

As a result, only £25 million of the £80 million was included in the divorce settlement. The remaining £55 million was ring-fenced as non-matrimonial.

 What does this mean for divorce law?

This ruling now sets a binding precedent in England and Wales for dividing finances after divorce.

Key takeaways:

• Pre-marital assets are not automatically split in a divorce.
• The sharing principle only applies to matrimonial property.
• Transferring money into a spouse’s name doesn’t turn it into shared wealth unless there’s clear intent to do so.
• The intention behind the transfer matters—not just the ownership on paper.

 What counts as non-matrimonial property?

Examples include:

• Wealth acquired before the marriage
• Inheritance received during the marriage, if kept separate
• Business assets or property owned before the relationship
• Large sums transferred for tax, estate planning, or children’s benefit

Unless there’s evidence these were intended for joint use, the court may exclude them from the divorce settlement.

Will every divorce follow this ruling?

Yes—this is now Supreme Court precedent. All courts must apply the same principles when deciding whether an asset is matrimonial or non-matrimonial. This is especially relevant in high-net-worth divorces or where one party contributed significantly more financially.

Going through divorce with complex finances?

If you’re dealing with:

• Significant pre-marital wealth
• Inherited money or property
• Tax or estate planning arrangements
• Or you’re concerned about protecting your business or future investments…

You need expert advice.

At OLS Solicitors, we help clients protect what matters most in divorce. We can advise you on how to structure your settlement and secure a clean break—whether you’re the wealth creator or the financially dependent spouse.

📞 Contact OLS Solicitors Today

• OLS Solicitors
• ☎️ 01554 756952
• 📧 [email protected]
• 🌐 www.ols-solicitors.co.uk

This article is for general guidance only and does not constitute legal advice. For tailored support, please contact our family law team directly.

The Benefits of Family Mediation: A Smarter Way to Resolve Disputes

When a relationship ends, the stress of sorting out finances, property, or childcare can feel overwhelming. But going straight to court isn’t your only option.

Family mediation offers a calmer, more constructive way to reach agreement. Below are the key reasons why it’s often the smartest first step after a separation or divorce.

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1. You Stay in Control

Unlike court, where decisions are made by a judge, mediation puts you in charge. You and your ex decide the outcome – working together to find solutions that fit your lives. It’s about cooperation, not confrontation.

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2. Faster and More Affordable Than Court

Court battles can drag on for months and cost thousands in legal fees. Mediation is typically much quicker – and significantly cheaper. Many families resolve everything in just a few sessions.

Read more on how family mediation works on GOV.UK.

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3. Reduces Conflict – Especially Important for Children

Mediation encourages respectful discussion. It helps parents communicate better and focus on what’s best for their children – not on “winning” or “losing.”

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4. Flexible and Confidential

Mediation is informal and private. You can speak freely, explore ideas, and reach agreements tailored to your circumstances – without the rigid structure of court.

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5. Agreements Can Be Made Legally Binding

Worried that mediation won’t stand up legally? Once you’ve reached an agreement, it can be turned into a legally binding consent order, giving you the reassurance of court enforcement without the stress of a full hearing.

Citizens Advice explains how to make your agreement legally binding.

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6. Helps You Move On with Less Stress

Resolving matters through mediation gives you peace of mind. You can move forward with your life – whether that means focusing on your children, finances, or emotional wellbeing – without the baggage of a courtroom battle.

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7. Makes Instructing a Solicitor Simpler (and Cheaper)

If you’re working with a solicitor, mediation can significantly reduce your legal costs:

• Fewer disputes = fewer solicitor letters
• Clear agreements = faster drafting of court paperwork
• Courts prefer it – mediation shows you’ve tried to resolve things amicably
• Better use of your solicitor’s time – less arguing, more legal advice

Put simply, mediation makes the legal process smoother and more cost-effective.

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Is Mediation Right for You?

Mediation works best when both parties are willing to talk openly and respectfully. It’s not suitable in cases involving domestic abuse, but for most families, it’s the best first step.

If you’re separating, start with mediation. And when you’ve reached an agreement, we can help you make it legally binding.

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Need help turning your agreement into a legally binding court order?

We offer a fixed-fee Consent Order service for £799 + VAT, which includes expert drafting and submission to court.

📞 Call us on 01554 756952
💬 Email: [email protected]

Matrimonial Finances: Understanding Section 25 of the Matrimonial Causes Act 1973

Introduction

When a marriage breaks down, one of the most complex and pivotal aspects of divorce is the division of matrimonial finances. In England and Wales, the Matrimonial Causes Act 1973 (MCA 1973) provides the statutory framework guiding how courts determine financial settlements (often referred to as ‘financial remedies’). Section 25 of the Act sets out a series of factors that judges must take into account before deciding how assets and income should be distributed. This blog post aims to give you an overview of the key principles in section 25 MCA 1973 and how courts interpret them.

1. The Overriding Objective

Fairness and Reasonableness

The overarching aim of the court is to achieve a fair outcome between the parties. Judges have broad discretion to consider all relevant circumstances of the case, but fairness remains paramount. In White v White [2000], the House of Lords emphasised that there should be no discrimination based on a spouse’s role (for instance, homemaker versus breadwinner) and introduced the “yardstick of equality” to prevent unfair bias.

The Three Main Principles

Subsequent case law—most notably Miller v Miller; McFarlane v McFarlane [2006]—refined the approach by identifying three guiding principles:

1. Needs: Ensuring each spouse’s financial needs are met, taking into account lifestyle and ongoing obligations.
2. Compensation: Recognising and compensating for any financial disadvantage arising from the marriage or its breakdown.
3. Sharing: Where assets exceed the parties’ respective needs, they should be shared fairly, typically indicating a starting point of equal division.

2. Section 25(2) Factors

Section 25(2) of the MCA 1973 obliges courts to consider a non-exhaustive list of factors when deciding how to exercise their powers. While each case is unique and judges have a broad discretion, the main factors typically include the following:

1. Income, Earning Capacity, Property, and Other Financial Resources
   The court looks at both spouses’ current and future financial positions, including potential earning capacity. Even if a spouse is not working at the time of the hearing, the court may consider whether they have the ability to do so or to retrain.
2. Financial Needs, Obligations, and Responsibilities
   Each party’s financial needs—such as housing, childcare, and monthly expenditures—must be assessed. Existing obligations (for example, supporting children from a previous relationship) will also weigh into the court’s deliberations.
3. Standard of Living Enjoyed during the Marriage
   Courts consider the lifestyle the couple had before separation. While one spouse is not guaranteed to retain the same standard of living post-divorce, it remains an important reference point.
4. Age of Each Party and the Duration of the Marriage
   Judges factor in the length of the marriage, as well as each spouse’s age, health, and prospects. A long marriage (particularly one spanning decades) often leads to a stronger expectation of equal sharing.
5. Any Physical or Mental Disability
   If either spouse has a disability that affects their earning capacity or creates additional needs, the court will strive to provide appropriate financial provision.
6. Contributions Made (or Likely to Be Made) to the Welfare of the Family
   Contributions can be financial, such as a high-paying job, or non-financial, such as caring for children or maintaining the family home. Courts have recognised that both types of contributions are equally valuable.
7. Conduct (If It Would Be Inequitable to Disregard It)
   Although ‘fault’ or bad behaviour is not generally a factor in deciding financial settlements, exceptionally serious conduct—e.g., fraudulently depleting marital assets—can affect the court’s decision.
8. Loss of Any Benefit
   Finally, the court may consider any future benefits (e.g., certain pension entitlements) that a spouse might lose because of the divorce.

3. How the Courts Apply These Factors

Wide Judicial Discretion

One of the defining features of financial remedy proceedings in England and Wales is the court’s ability to tailor the outcome to the specifics of each case. Although section 25 sets out the factors that must be considered, it does not prescribe a strict formula, meaning judges can weigh each factor according to the circumstances at hand.

The ‘Needs’ Threshold

Courts typically start with an assessment of both parties’ financial ‘needs’—including housing and everyday expenses—especially where resources are limited. Meeting these needs usually takes priority over applying the sharing principle. Once essential needs have been satisfied (subject to the available funds), the court may then consider compensatory and sharing factors.

Equal Division or Departure from Equality

While equality is often a starting point—particularly in longer marriages—the court may depart from a 50/50 split in situations where one party’s health issues, future earning capacity, or childcare responsibilities require a greater share of the assets. Conversely, if significant wealth far exceeds the couple’s needs, the court may focus on fair sharing and the principle established in White v White.

Spousal Maintenance

Where there is a substantial disparity in incomes, a judge can order one spouse to pay maintenance (also known as “periodical payments”) to the other. This can be temporary (allowing time for retraining or re-entering the workforce) or ongoing, depending on factors like age, health, and the likelihood of becoming self-sufficient.

4. Practical Tips for Clients

1. Seek Early Legal Advice
   Understanding the section 25 factors and how they apply to your situation is crucial. A solicitor can help you gather relevant financial information and advocate for a fair outcome.
2. Be Thorough and Transparent
   Full and frank financial disclosure is key. Courts take a dim view of any attempt to hide assets or provide incomplete data.
3. Consider Alternative Dispute Resolution
   Before going to court, explore mediation or arbitration. These avenues can help you negotiate a settlement, potentially reducing costs and the emotional burden of litigation.
4. Plan for the Long Term
   Think beyond immediate needs. Discussions about pensions, future earning capacities, and retirement plans can significantly affect financial stability over time.

Conclusion

Section 25 of the Matrimonial Causes Act 1973 sets out the roadmap for courts when deciding how to divide marital assets and income. While the legislation outlines the key factors that must be considered, judges ultimately have the discretion to determine a fair outcome based on each case’s unique facts. From assessing ‘needs’ and contributions to the principle of equal sharing, the court’s primary objective is to achieve fairness.

If you’re navigating a divorce or contemplating one, professional legal advice is indispensable. One of our specialist family law solicitors can help you understand how the court might apply the section 25 factors in your specific circumstances and guide you through the process to help secure the best possible outcome. Speak to us today on 01554 756952 or [email protected].

Christmas is often seen as a time for family and celebration, but for those going through a divorce, it can bring emotional challenges and practical complications. Whether it’s managing child arrangements, dealing with financial pressures, or coping with feelings of loss, the festive season can feel overwhelming. However, with careful planning and a focus on well-being, it’s possible to make the holidays a positive experience for yourself and your loved ones.

Here’s a guide to help you navigate Christmas while also dealing with a divorce.

1. Acknowledge Your Emotions

Divorce is a significant life change, and it’s normal to feel a mix of emotions during the festive season, such as sadness, anger, or anxiety. To cope:

• Allow Yourself to Grieve: Recognise that it’s okay to feel upset, especially if this is your first Christmas post-separation.
• Seek Support: Talk to friends, family, or a therapist about your feelings.
• Focus on the Positive: Shift your perspective by focusing on what you can control and the new traditions you can create.

2. Managing Child Arrangements

For parents, one of the most challenging aspects of Christmas during a divorce is agreeing on child arrangements. To ensure a smooth holiday:

• Plan Ahead: Discuss arrangements with your ex-partner as early as possible to avoid last-minute conflicts.
• Be Fair and Flexible: Consider alternating Christmas Day each year or splitting the holiday period so both parents get quality time with the children.
• Prioritise Your Children’s Happiness: Keep the focus on their needs and avoid involving them in disputes.
• Formalise Agreements: If arrangements are not already part of a child arrangement order, consider mediation to create a plan that works for everyone.

3. Financial Planning

Divorce can bring financial strain, which may feel heightened during the expensive holiday season. To stay on track:

• Set a Budget: Avoid overspending on gifts or celebrations by creating a realistic budget.
• Discuss Shared Costs: If you’re co-parenting, agree in advance on how to share costs for your children’s gifts or activities.
• Simplify Celebrations: Remember that meaningful experiences, not expensive presents, make the season special.

4. Creating New Traditions

Christmas traditions may feel different after a divorce, but this can also be an opportunity to create new ones:

• Focus on Your Interests: Plan activities that you enjoy, whether that’s baking, watching holiday films, or spending time with friends.
• Involve Your Children: Let your children suggest new traditions, such as decorating the tree or having a special meal together.
• Celebrate on a Different Day: If you don’t have your children on Christmas Day, create a festive celebration on another day to make it just as special.

5. Coping with Loneliness

If this is your first Christmas alone, it’s natural to feel isolated. Combat loneliness by:

• Connecting with Loved Ones: Spend time with friends or family members who support you.
• Volunteering: Helping others can provide a sense of purpose and connection during the holidays.
• Treating Yourself: Use the time to focus on self-care, such as enjoying a quiet day, reading, or indulging in a hobby.

6. Avoiding Conflict with Your Ex-Partner

The holiday season can heighten tensions, especially if emotions are running high. To avoid unnecessary conflict:

• Stick to Agreements: Honour any arrangements you’ve made for the holidays.
• Communicate Calmly: Use neutral language and avoid blaming or accusatory statements.
• Focus on the Bigger Picture: Remember that a harmonious holiday season benefits everyone, especially your children.

7. Supporting Your Children

Children may feel caught in the middle during Christmas if their parents are divorced. To help them adjust:

• Reassure Them: Let them know it’s okay to love and spend time with both parents.
• Keep the Festive Spirit Alive: Ensure they feel the magic of Christmas, regardless of the circumstances.
• Encourage Communication: Allow them to call or video chat with the other parent if they’re not together on Christmas Day.

8. Seek Professional Support

If Christmas disputes become too difficult to handle alone, consider seeking help:

• Mediation: A neutral mediator can help you and your ex-partner reach agreements on child arrangements or financial matters.
• Counselling: Speaking to a professional can provide emotional support and coping strategies.
• Legal Advice: If disputes escalate, consult a solicitor to understand your rights and options.

9. Look to the Future

Christmas is just one part of the year, and while it may feel challenging now, it’s important to focus on the opportunities ahead:

• Set Goals for the New Year: Use this time to reflect on what you want to achieve in the coming year, both personally and professionally.
• Embrace Change: Remember that divorce is a fresh start, and the holidays can be a step toward building a new life.
• Celebrate Your Strength: Acknowledge how far you’ve come and the resilience you’ve shown through this process.

Final Thoughts

Christmas during or after a divorce can be tough, but it’s also an opportunity to redefine the season and create new traditions. By prioritising communication, flexibility, and your well-being, you can navigate the challenges and focus on what truly matters—making the holidays meaningful for you and your loved ones.

If you need help with child arrangements or other legal matters during the festive season contact us on 01554 756952 for affordable, professional services to guide you through the process. Let this Christmas be the start of a brighter chapter.

The New Year is an excellent time to reassess your personal and legal matters to ensure they are up-to-date, secure, and aligned with your life goals. From organising your finances to safeguarding your family’s future, addressing private legal matters at the start of the year can provide peace of mind and set the tone for a smoother year ahead.

Here are key private legal matters to review and consider as the New Year begins:

1. Review Your Will and Estate Plan

A new year is a great opportunity to ensure your will and estate plan reflect your current wishes:

• Update Beneficiaries: Ensure the correct individuals are named, particularly if there have been significant life changes, such as marriage, divorce, or the birth of a child.
• Review Guardianship Arrangements: If you have children, confirm that your will names appropriate guardians.
• Consider Inheritance Tax (IHT) Planning: Speak with a solicitor or financial advisor about minimising IHT liabilities to protect your estate.

2. Power of Attorney

Consider appointing a Lasting Power of Attorney (LPA) to protect your interests if you lose mental or physical capacity:

• Property and Financial Affairs LPA: Allows someone you trust to manage your finances and property.
• Health and Welfare LPA: Enables decisions about your healthcare and living arrangements.

3. Divorce or Separation

For those going through or considering a divorce, the New Year is an ideal time to focus on:

• Formalising Agreements: If you’ve reached an informal agreement about finances or child arrangements, consider making it legally binding.
• Financial Clean Break Orders: Protect yourself from future financial claims by your ex-spouse with a clean break order.
• Co-Parenting Plans: Establish clear arrangements to avoid conflict and uncertainty regarding your children’s care.

4. Prenuptial or Postnuptial Agreements

If you’re planning to marry in the coming year or are already married, consider:

• Prenuptial Agreements: Protect your assets and clarify financial arrangements before marriage.
• Postnuptial Agreements: Update agreements after marriage to reflect changes in circumstances.

These agreements can help avoid disputes and provide clarity in the event of a separation.

5. Property Ownership and Tenancy Agreements

If you own property or are a tenant, review your agreements to ensure they reflect your needs:

• Property Co-Ownership: If you own property with another person, confirm whether it is held as joint tenants or tenants in common, as this impacts inheritance rights.
• Tenancy Agreements: For renters, ensure your tenancy is valid and covers the correct terms for the coming year.
• Mortgage Arrangements: Review your mortgage terms, especially if you’re nearing the end of a fixed rate or considering a remortgage.

6. Family Matters

Start the year by addressing legal arrangements that support your family’s well-being:

• Child Arrangements: Ensure any existing arrangements for children are still suitable, especially following significant changes such as relocation or new partners.
• Grandparent Rights: If grandparents are involved in childcare, consider formalising arrangements if disputes arise.
• Adoption or Guardianship: Begin the legal process early if you’re considering adoption or formal guardianship.

7. Preparing for the Unexpected

Finally, plan for unforeseen events:

• Emergency Plans: Update or create a document with key contacts, financial details, and important documents for emergencies.
• Funeral Wishes: Consider specifying your wishes to ease the burden on loved ones.
• Legal Advice: Build a relationship with a trusted solicitor who can assist you as needed throughout the year.

Final Thoughts

Taking the time to review your private legal matters as you enter the New Year can help you feel organised and in control. Whether it’s updating your will, planning for family changes, or addressing financial matters, proactive planning can save stress and protect your interests in the long term.

If you need assistance with wills, family matters, or legal disputes, call us today on 01554 756952 to ensure your affairs are handled professionally and with care. Starting the year with clarity can set the foundation for a prosperous and stress-free year ahead.