This week the Supreme Court will hear Mrs Standish's appeal under the Matrimonial Causes Act 1973 about whether certain assets should be classified as matrimonial or non-matrimonial, and how the "sharing principle" should apply in financial remedy proceedings.

In April 2017, before their divorce, Mr Standish transferred investments worth a staggering £77.8m to Mrs Standish as part of a tax planning scheme. Originally, these assets were Mr Standish's non-matrimonial property, and thus potentially not caught by the sharing principle. However, at a final hearing, the judge ruled that these assets had been "matrimonialised” because they had been transferred into Mrs Standish’s name. The judge then divided the matrimonial assets unequally (60/40) in favour of Mr Standish, awarding Mrs Standish £45m and ordering her to transfer other assets back to her husband.

Unhappy with the decision, Mrs Standish appealed, seeking to increase her share to £66m, arguing for an equal split of the couple's total wealth of £132m. The Court of Appeal dismissed her appeal but allowed a cross-appeal from Mr Standish, who contended that the money was acquired before the marriage and should be considered non-matrimonial. The Court of Appeal decided that the assets transferred by Mr Standish in 2017 had not become matrimonial property. Lord Justice Moylan concluded that the initial judge's application of the sharing principle had led to an unjustified division of wealth in Mrs Standish's favour and the Court of Appeal reduced her award by 40%, leaving her with just £25m.

Mrs Standish has now escalated the case to the Supreme Court, seeking a final resolution. Will the Supreme Court side with her, or will they uphold the Court of Appeal's decision and recognise the importance of the origin of the disputed wealth? 

This case has arguably given greater scope for dispute that an asset brought into the marriage will not automatically be assumed to be subject to the sharing principle because it has been put in joint names. Whatever is decided, the Supreme Court’s decision will be significant when considering the source of assets on divorce. Judgment is likely to be a few months away but watch this space!