Since the House of Lords decision in Miller/Macfarlane, the courts have categorised assets into:
- matrimonial assets – those that have been built up during the marriage; and
- non-matrimonial assets – assets brought into the marriage when it began, or assets inherited from one or the other’s family.
The distinction can be important, especially in wealthier families. The courts are more likely to divide matrimonial assets equally as they are the fruits of the matrimonial partnership. Inheritances or other non-matrimonial property may be dealt with differently.
For most families, however, the distinction is less important. Meeting housing and other needs will be the priority no matter where the money or property has come from.
This can cause ill feeling, especially when one spouse happens to have received his or her inheritance and the other has not yet done so.
It helps to set out in detail what money was brought into the marriage and what was inherited. See FAQs, particularly on prenuptial agreements.
If an inheritance has not yet been received, one cannot assume that the money will definitely come in. For example, if one spouse’s parents are still alive, then their savings or property may be used up in meeting nursing home expenses: it may not be available when they die.
If one spouse is a beneficiary under a trust, that interest has to be disclosed.