How Can You Protect Your Wealth on Divorce?
Worried about losing your family home, an inheritance or wealth you built up before marriage, if your relationship breaks down?
You are not alone. For many people, marriage is about building a life together, not putting a lifetime of savings at risk.
The good news is that the law recognises a difference between wealth acquired during a marriage and assets brought into it. The challenge is understanding how that distinction works, what can put your assets at risk and how to protect your position.
A landmark Supreme Court ruling in Standish v Standish in July 2025 has provided important guidance on protecting pre-marital and inherited wealth. It confirms that transferring assets between spouses for tax planning does not, by itself, mean those assets become matrimonial property to be shared on divorce.
However, there is no magic legal shield that guarantees your assets will be untouchable.
Planning to marry, already married or concerned about protecting an inheritance? Our Family Law Solicitors at Kingsfords Solicitors Offices in Ashford, Cranbrook and Hythe can help you understand your options and plan ahead. You can ‘Get-In Touch’ via our website enquiry icon, or by calling us on 01233 665544
Contact the author - Senior Solicitor and Head of Department Shakeel Malik to discuss a prenuptial agreement, postnuptial agreement or protecting your existing assets.
What happens to assets you owned before marriage?
In England and Wales, the court has wide powers to decide how finances should be divided when a marriage ends. These powers come from the Matrimonial Causes Act 1973.
When making a financial order, a judge considers the circumstances of the case, including each person's financial resources, needs, earning ability, the length of the marriage and their contributions to family life. The welfare of any minor child is given first consideration.
This means divorce does not automatically result in a 50/50 split of everything you own. Equally, owning an asset in your sole name does not automatically protect it.
The court distinguishes between two broad categories:
- Matrimonial assets: Wealth built up through the marriage, often through earnings, savings, investments or the parties' shared efforts.
- Non-matrimonial assets: Wealth typically acquired before marriage or received from an external source, such as an inheritance or gift.
This distinction matters because matrimonial assets are generally subject to the sharing principle, while non-matrimonial assets are not automatically shared simply because a marriage has ended.
But there is a catch. The court may still take non-matrimonial wealth into account when deciding whether both spouses' reasonable financial needs can be met.
For example, an inheritance may begin as one person's separate wealth. If it is later used to buy the family home, fund the family's lifestyle or support shared investments, the position can become more complicated.
In other words, the origin of your money matters, but so does what happens to it during your marriage.
What did Standish v Standish change?
The Supreme Court's decision in Standish v Standish [2025] UKSC 26 is particularly important for anyone concerned about protecting pre-marital wealth.
The case involved a husband who had built up substantial wealth before marriage. In 2017, he transferred investments worth approximately £77.8 million into his wife's sole name as part of a tax-planning arrangement. The intention was for the investments eventually to be placed in trusts for their children.
The trusts were never established, and the couple later divorced.
The key question was whether transferring the investments to the wife's name had turned the husband's non-matrimonial wealth into matrimonial property, making it subject to the sharing principle.
The Court of Appeal ruled that most of the assets remained non-matrimonial. The wife appealed, but on 2 July 2025, the Supreme Court unanimously dismissed her appeal and upheld the Court of Appeal's decision.
Why does the ruling matter?
The Supreme Court confirmed several important principles:
- The source of an asset matters. Wealth acquired before marriage or received through inheritance or an external gift may remain non-matrimonial.
- Legal ownership is not decisive. Moving an asset into a spouse's sole name or joint names does not, by itself, determine how it will be treated on divorce.
- Tax planning does not automatically make wealth matrimonial. A transfer between spouses for tax purposes will not normally show that they intended to treat the asset as shared.
- How assets are treated over time matters. Non-matrimonial wealth may become matrimonial where the couple's actions show that they have come to treat it as shared.
This last point is particularly important. The court looks beyond whose name appears on the paperwork and considers the wider history of the asset.
The decision is a significant clarification of the law. However, it is not a blanket exemption for every asset acquired before marriage or received through inheritance.
Read the Supreme Court's official case summary for further details.
How can you protect pre-marital assets?
There is no single approach that works for everyone. The best strategy depends on the assets involved, your family circumstances and your plans for the future.
Here are five practical steps worth considering.
1. Consider a prenuptial agreement
A prenuptial agreement, often called a prenup, is an agreement made before marriage setting out how the couple intends their finances to be dealt with if they divorce.
It can identify assets that each person wishes to keep separate, including:
- Property owned before marriage.
- Savings, investments and business interests.
- Family wealth and anticipated inheritances.
- Assets held in trusts, where relevant.
- Future increases in the value of certain assets.
A well-drafted prenup can also explain how shared assets, debts and financial responsibilities should be handled.
Prenups are not automatically binding on courts in England and Wales. However, the Supreme Court's decision in Radmacher v Granatino [2010] UKSC 42 established that courts should generally give effect to a nuptial agreement freely entered into by each party with a full appreciation of its implications, unless it would be unfair to do so in the circumstances.
That is why independent legal advice, financial disclosure and proper preparation matter. A prenup signed under pressure the night before the wedding is unlikely to be the gold standard.
Getting married soon? Speaking to our Family Law Solicitors early gives both parties time to consider the agreement properly, without turning wedding preparations into a legal sprint.
2. Consider a postnuptial agreement
Missed the opportunity to sign a prenup? Do not panic. A postnuptial agreement can be made after the wedding.
It may be useful if you inherit money during the marriage, start a business, receive a substantial gift from family or experience a significant change in your financial circumstances.
For example, suppose you inherit a property from a parent several years after getting married. A postnup could record your intentions for that property and set out how you and your spouse would like it to be treated if you later separate.
As with a prenup, the agreement must be prepared carefully and is not guaranteed to determine the outcome of any future court proceedings.
3. Keep clear records of where your money came from
Good records can make a real difference.
If you bring substantial assets into a marriage, keep documents showing what you owned and what those assets were worth at the time. If you inherit money, retain the relevant estate paperwork and evidence of the transfer.
Where practical, maintain a clear record of how separate assets are held, invested or used.
This is sometimes called ring-fencing your assets. The aim is to make it easier to identify their source and follow what happens to them over time.
Separate bank accounts can help with record-keeping, but they are not a guarantee of protection. Equally, placing assets in a joint account does not automatically settle the legal question of whether they have become matrimonial property.
Think of good records as a financial paper trail. They may not be glamorous, but they can be invaluable when questions arise years later.
4. Be careful about using inherited money for shared purposes
It is natural to use an inheritance to improve family life. You might pay off the mortgage, renovate the family home or invest in a property with your spouse.
There is nothing inherently wrong with doing so. However, these decisions may affect how the assets are viewed if you later divorce.
The Supreme Court's reasoning in Standish makes clear that the court considers how the couple has treated the assets over time. Using separate wealth in a way that shows it has become part of the couple's shared financial life may support an argument that it has become “matrimonialised”.
Before making a substantial transfer or using inherited wealth for a major joint purchase, consider taking legal advice about the possible consequences.
5. Review your arrangements as life changes
Financial planning is not a one-off exercise.
Marriage, children, a new business, a substantial inheritance or a property purchase can all change your circumstances. An agreement that made sense five years ago may no longer reflect your family's needs.
Review your arrangements periodically and seek advice when there is a significant change. If you have a nuptial agreement, check whether it needs updating to reflect new assets or changed circumstances.
Need advice on protecting a family business, inherited property or investments? Our Family Law Solicitors can help you explore practical options that reflect your circumstances.
Can inherited assets ever be divided on divorce?
Yes, in some circumstances.
An inheritance will often begin as non-matrimonial property, but that does not mean it can never be considered in a financial settlement.
For example, if one spouse inherits a house and the couple subsequently uses it as their family home, the court may need to consider how the property has been treated, the length of the marriage and each person's housing needs.
Similarly, if one spouse has substantial inherited wealth but the other cannot meet reasonable housing or living costs, the court may take that wealth into account when deciding what a fair outcome requires.
The Supreme Court in Standish confirmed that non-matrimonial property is not subject to the sharing principle. However, it can still be relevant under the needs and compensation principles.
Every case depends on its own facts, and specialist legal advice is important where significant assets are involved.
When should you speak to our Family Law Solicitors?
The best time to consider asset protection is usually before a dispute arises.
If you are planning to marry, have recently received an inheritance or already have significant wealth, early advice can help you understand the risks and make informed decisions.
A family solicitor can help you:
- Identify which assets may be non-matrimonial.
- Consider whether a prenup or postnup would be appropriate.
- Prepare an agreement that clearly records your intentions.
- Understand the possible consequences of transferring assets or buying property jointly.
- Review existing arrangements following changes in your circumstances.
A solicitor can also work alongside your accountant or tax adviser where necessary. This is particularly helpful when a proposed arrangement has both legal and tax consequences.
You can find further information about financial arrangements on the government's GOV.UK divorce and financial agreements guidance.
Protect your wealth with clear, informed advice
Your pre-marital assets and inheritance may represent years of hard work, family history or financial security for the next generation. It is entirely reasonable to want clarity about what might happen to them if your marriage ends.
The decision in Standish v Standish offers important reassurance: transferring assets for tax-planning purposes does not automatically turn separate wealth into matrimonial property. But it does not remove the court's discretion or guarantee that inherited and pre-marital assets will remain untouched.
The most effective approach is to understand your position early, keep clear records and consider whether a carefully prepared nuptial agreement could help protect your interests.
Speak to our Family Law Solicitors at Kingsfords Solicitors
Whether you are preparing for marriage, considering a postnuptial agreement or looking to protect inherited wealth, we can help you understand your options and plan for the future.
Contact our team today to arrange a confidential discussion. A little planning now could help avoid a great deal of uncertainty later.