Family mediation week 2026

Family Mediation Week takes place from the 26th to 30th January.

The week is an opportunity to raise awareness of family mediation and of the benefits it can bring to separating families. The Family Mediation Council state that their aim is to let more people know about the benefits of family mediation and encourage separating couples to think about family mediation as a way of helping them take control, make decisions together and build a positive future for their family.

Throughout this week, they will be offering a series of free webinars, resources, information, blog posts and issue news stories.

For parents living in the North East who have decided to separate or divorce in 2026 are being urged to find out how to avoid courtroom confrontation to settle money and parenting arrangements.

January usually sees a rise in the number of parents deciding to live apart as the various pressures that go hand-in-hand with the Christmas period act as a final straw for relationships.

Trevor Gay, head of Family Law says “Family Mediation Week is designed to raise awareness of the benefits of family mediation, a process that can help ex-partners agree what works for them, whilst avoiding the court process with all the stress, delay and cost it can bring.”

He says: “Many parents emerge from the festive period feeling defeated by the pressures on relationships and finances that have been highlighted during the holiday period.”

Here in Whitley Bay, we find parents in this position simply don’t know which way to turn. Their life-changing decision to separate brings with it so many tough questions:

  • Who lives where?
  • Where will the children live, and how will we make sure we each spend time with them?
  • How will we sort money?
  • What about debts and pensions?
  • And even the family dog?

Family Mediation Week shines a helpful spotlight on these tricky issues, offering separating parents information about their options as they look to make arrangements for parenting, property and finance.

Family mediation is a process where an independent, professionally trained mediator helps you work these things out, enabling you to avoid courtroom confrontation. Professional mediators help empower you to create long-term solutions for your particular circumstances, rather than leaving it to a court to make decisions for your family.

Anyone wanting to know more about the benefits of family mediation and parenting arrangements can visit www.kiddspoorlaw.co.uk or call 0191 297 0011.

 

Avoiding common property problems in a divorce

Dealing with real estate issues in a divorce or dissolution of a civil partnership can be legally intricate. Misunderstanding how assets are categorised, failing to value them correctly, or overlooking tax consequences can lead to an unfair settlement and long-term financial harm. Problems can be further complicated where other family members are involved, such as an elderly parent in a granny annex, or where property is owned via a company.

‘Among some of the most challenging aspects is deciding what is to happen to property, such as the family home and other valuable assets that have been built up or acquired during your marriage or civil partnership,’ says Trevor Gay, head of the family team. ‘In order to avoid lengthy court proceedings, it is best to understand at the outset how to avoid the common property problems which can arise during divorce negotiations.’

Our family law team at Kidd & Spoor Solicitors are experts in this field, and below we take a quick look at the key issues that you need to consider.

Understanding matrimonial and non-matrimonial property

Before looking at the common problems, it is important to understand the difference between matrimonial and non-matrimonial property.

Matrimonial property includes all assets accumulated during the marriage, such as:

  • the family home (regardless of whose name is on the title);
  • joint savings, pensions, and investments, such as a buy-to-let or a holiday home; or
  • businesses or companies built up during the marriage, which could own commercial or residential property.

Non-matrimonial property generally refers to assets acquired before the marriage, or after separation. Examples include:

  • a home owned prior to the marriage;
  • inherited wealth, such as the home of a deceased parent; or
  • post-separation income or investments, such as a buy-to-let.

Non-matrimonial assets can be ‘mingled’ with matrimonial property, meaning that they are treated within the matrimonial pot.  For example, if one spouse’s inheritance is used to buy or improve the family home, it may lose its separate character and mean it is treated as a matrimonial asset. Similarly, if the matrimonial assets are insufficient to meet both parties’ needs, then non-matrimonial property will be considered to achieve a fair outcome.

When it comes to negotiating the financial settlement, the starting point is an equal division of matrimonial assets. However, many factors, such as the housing needs of any children of the family and any ill health of a spouse will also be taken into account.  These factors often mean that there is a divergence from a 50/50 division.

What happens to the family home?

The family home is often the most valuable and significant asset in a divorce, and it may be difficult to agree how it is dealt with as it is often an asset that has a lot of emotional ties.  Both spouses may wish to remain in the home, or one spouse may wish to remain but is unable to raise sufficient monies to buy out the other spouse’s interest.

How it is divided depends on a number of factors, including:

  • the age of each party and duration of the marriage;
  • any physical or mental disabilities; and
  • the housing needs of any dependent children.

Where there are dependent children, the court’s first consideration is their welfare. This typically means that the parent the children reside with will receive a larger interest in the family home.  This may mean a larger portion of any equity in the family home if it is to be sold, or that the spouse who resides with the children is able to buy out their spouse’s interest in the home at a lower rate.  If they are not financially able to do that but wish to stay in the family home, they may seek a postponement of sale of the house until the children are grown up (known as a ‘Mesher order’).

It is important to note that the court will consider the above factors, even in a situation where one spouse owns the property in their sole name.

It is also worth considering at an early stage if mortgage approval will be required, or a new mortgage application needed.  For example, if you already have a mortgage on the family home that had been in joint names, this will either need to be repaid, or the mortgage company will need to consent to an agreement to transfer the property to just one spouse’s name.  If the mortgage is to be repaid, typically this is done by releasing monies from another asset to raise the funds to repay, or, by taking out a new mortgage in just one spouses name.

Other real estate: second homes, granny annexes, and business premises

While the family home is the focal point, many couples also own additional properties, whether that is a holiday home, investment property, or business premises.

  • Second homes and holiday properties

Second homes and holiday homes are typically treated as matrimonial property if purchased during the marriage or funded by joint income. Their fate depends on the couple’s needs and financial position. Often, these properties are sold, with proceeds shared or offset against other assets.

If one party has a strong emotional attachment or regularly uses a property, it is sometimes possible to negotiate a trade-off.  Typically, this means accepting a smaller share of assets elsewhere in order to keep the holiday home.

If the second home is overseas, then it is best to try and reach an agreement as to how it will be handled.  If agreement cannot be reached, then our courts can consider the asset and its value in any order, but enforcement of that order outside of the jurisdiction is complex and likely to be time consuming.

  • Granny annexes and extended family arrangements

Where a property includes a self-contained annex or accommodation for elderly relatives, additional sensitivities arise. The court will assess both parties’ housing needs and any dependencies of elderly or vulnerable family members. If relatives have contributed to the purchase or a refurbishment, the court may need to consider whether they have a beneficial and financial interest even if they do not hold legal title. These cases often require expert evidence, including property valuations if agreement cannot be reached.  Careful consideration of the property title is also required to see if any rights are registered in favour of the elderly relatives.

  • Investment properties and rental portfolios

The court treats buy-to-let properties and investment portfolios as income-producing assets, and they are usually included within the matrimonial pot. The valuation will typically be based on market value minus any mortgage and tax liabilities that fall due on sale.

Depending on needs, one spouse may retain the rental property to generate income, while the other spouse receives cash assets to balance the settlement.  This is known as ‘offsetting’.

  • Business premises and company assets

Where one or both spouses own business premises or are directors/shareholders, the situation can be complex. The business itself is often the main income source for the family, so courts will be cautious about making orders that could undermine its viability.

Valuing a business requires specialist input from an accountant.  We deal with several accounting experts who we can instruct on your behalf to ensure you have the assessment for your business.  A valuation will consider the business resources, profitability and a realistic goodwill figure.

Upon receipt of the valuation, we will be able to advise you on the best approach under your circumstances.  This may involve offsetting against different matrimonial assets, transferring shares or making structured payments.

Failing to take account of tax implications

Failing to take account of tax arising from any property transaction can be a costly oversight, and typically the following taxes need to be considered:

  • Capital Gains Tax (CGT)

If you are separated, you can transfer assets between spouses free of CGT until the end of the third tax year after the tax year in which you separated, i.e. on or before 5 April of the third tax year.  CGT is particularly relevant where one spouse retains an investment property or business interest.  Failing to plan properly can erode the settlement value by thousands of pounds.

  • Stamp Duty Land Tax (SDLT)

There are several issues that can arise which may have an SDLT impact.  Typically, SDLT does not apply when spouses transfer property between themselves as part of a divorce settlement.

If you buy a new home before your divorce is finalised (assuming you still own or jointly own the former matrimonial home) it will be treated at the time of purchase as a second home and the SDLT surcharge will apply.  If, however, you reach a settlement, or obtain an order from the court, and within three years of buying your new home, sell or transfer your interest in the former matrimonial home you can apply for a refund of the surcharge SDLT you paid.  SDLT is a complex tax, with many exemptions and variations.  It is therefore important to take advice on your individual circumstances.

  • Income tax and future earnings

Shares, investment income, and business profits also carry potential income tax implications which need to be borne in mind when entering a settlement agreement, as some could reduce the income you are perhaps expecting. Any entitlement to marriage allowance will also come to an end.

  • Pension sharing and lifetime allowances

Pensions can often be significant marital assets, and a SIPP or SSAS may include property, yet many couples overlook their tax complexity. Pension sharing orders transfer a percentage of one spouse’s pension to the other, but factors such as lifetime allowance limits, tax on withdrawals, and scheme rules can all affect true value.

We will advise you if independent financial, accounting and actuary advice is required to consider your potential tax implications.

How we can help

Our experienced family law team will provide you with clear legal guidance at the outset. We guide clients through every stage of the divorce process, from negotiation to settlement, ensuring your financial interests and those of your family are protected.

If you are facing divorce or separation and need advice on dividing property, contact our Family Law Department today to arrange a confidential consultation on 0191 297 0011 or email whitley.bay@kiddspoorlaw.com.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

Entitlements in Divorce

When a marriage comes to an end, sorting out the finances is often one of the most difficult parts. It’s not just about dividing money and property – it’s about making sure both people can move forward, especially when children are involved.

Whilst many people seem to believe that everything is split 50/50, there is under the law in England And Wales, no reference to any number or percentage.  An equal division is considered but this is just a starting point. The reality is more nuanced. Every case is different, and the outcome depends on a range of legal and practical factors.

The law that guides this process is the Matrimonial Causes Act 1973, specifically section 25. The court’s top priority is the welfare and housing needs of any children under 18. Any financial settlement must ensure their needs are properly met.

The Law – Section 25 Factors

When deciding how to divide assets, the court will consider all matters but always looks at several key factors:

  • What each person owns and earns now, and what they are likely to have in the future.
  • Their financial needs, obligations and responsibilities.
  • The standard of living and lifestyle they had during the marriage.
  • Their ages and how long they were married.
  • Any health issues that might affect earning capacity or financial needs. This can include the need to care for a child with any additional needs.
  • The needs of any minor child and to a much lesser extent any adult child.
  • The assets and debts.
  • Contributions made by each person – whether through income, caring for children, or running the household.
  • Any behaviour that’s so serious it would be unfair to ignore.

These factors help the court reach a fair and balanced decision based on the specific circumstances.

Matrimonial vs Non-Matrimonial Assets

The court usually focuses on matrimonial assets – things acquired during the marriage for the benefit of both spouses. This includes the family home, savings, pensions, and investments.

Sometimes, assets brought into the marriage – like an inheritance or property owned before the marriage – are considered non-matrimonial. These might be excluded from the settlement, especially if they were kept separate. The importance of the pre-marital ownership can diminish over time. But if the matrimonial assets are not enough to meet both parties’ needs, the court can include non-matrimonial assets to make sure everyone is financially secure.

How Do the Courts Decide on Division?

The process starts with both parties providing full financial disclosure. That means listing everything they own, earn, and owe – whether it is considered matrimonial or not.
If splitting everything equally meets both parties’ needs, the court may go with that. But adjustments are often made to reflect:
• The needs of any children.
• One person’s financial dependence on the other.
• Differences in pensions or future earning potential.

There are a lot of myths about what people are “entitled” to in a divorce. Let’s look at a few of the most common ones:

“I’m entitled to half of everything, no matter how long we were married.”
Not necessarily. The length of the marriage matters. In shorter marriages, especially where finances were kept separate, the court may not divide everything equally. In longer marriages, a split closer to 50/50 is more likely—but only if it meets both parties’ needs.

“I can claim half of my ex’s future inheritance.”
Generally, inheritance received after separation are not considered part of the matrimonial pot. Even during the marriage, inherited assets may be treated as non-matrimonial – unless they were used for the benefit of both spouses (e.g. buying the family home). Future inheritance is speculative and rarely included.

“The house is in my name, so my ex can’t claim it.”
Ownership doesn’t always determine entitlement. If the house was the family home, it is likely to be considered a matrimonial asset – even if only one person’s name is on the title. The court looks at how the property was used, not just who owns it.

“My pension is safe because I contributed before we got married.”
Pensions are often one of the biggest assets in a divorce. Contributions made before the marriage may be considered non-matrimonial, but if the pension is needed to meet the other party’s needs, it can still be divided. The court takes a practical approach based on fairness.

These myths can lead to unrealistic expectations and unnecessary conflict. That’s why it’s so important to get proper legal advice early on.

Maintenance pending suit (mps) applications

A maintenance pending suit (MPS) order is made where one spouse requires payments made from the other spouse during divorce proceedings, but before the financial outcome of the divorce is finalised. These payments are known as maintenance pending suit. They are also known as ‘interim maintenance’ or ‘interim periodical payments’.

The payments made are generally regular payments and are used to assist one party with their day-to-day living expenses. A maintenance pending suit order is a form of holding payment.

How do I know if I am entitled to a maintenance pending suit order (MPS)?

In deciding whether or not MPS is appropriate, the Court will evaluate the level of the recipient’s ‘needs’.

The Court will assess the need in order to decide:

  1. if MPS is appropriate, and
  2. if so, the level of the payments.

The Court will also consider the payers’ ability to make these payments. If the Court determines that the payer does not have additional income to meet the recipient’s request, it is unlikely to order MPS.

First steps when applying for MPS

Best practice dictates that the preparation of a budget, or income needs schedule, based on essential interim outgoings rather than a comprehensive detailed budget, is the first step for the applicant (recipient of the MPS) and this is considered against both parties’ income. Ideally, an appropriate level of MPS will be negotiated with the other party. If negotiations fail, the recipient can make an application to the Court to determine whether MPS is appropriate and, if so, how much should be paid.

It is also worth considering at this stage whether an application for the other party to pay legal fees should be made alongside an MPS application (known as a Legal Services Payment Order (LSPO).

Financial implications

In “small money/average money” cases, the costs of making an application may be disproportionate to the relief that is sought, particularly because an application for MPS is only made to cover a number of months, pending the resolution of the case.

The Court will assess whether or not MPS should be made using a test of reasonableness and it will look at the marital standard of living. It is not always possible for parties to maintain the same standard of living after separation, and so it is important for expectations to be managed in this regard (i.e. it is cheaper to run one household than two). If there is a question over the financial disclosure by the respondent (either being deficient or intentionally minimising their income), the Court may make fairly robust assumptions in respect of their ability to pay.

Advantages and disadvantages of MPS

The advantages of making an application and having a determination of MPS during ongoing financial remedy proceedings is that if successful, the applicant is in a less precarious financial position and then establishes a precedent within the litigation for a level of income which is required, and this will no doubt help their case in the context of the overall financial settlement.

The risks are that the general concept of ‘no order as to costs’ in financial remedy proceedings is suspended for MPS applications, so there is a distinct possibility that if unsuccessful, an applicant might be ordered to pay the other party’s legal fees. The application could also increase the acrimony between the parties and require court proceedings to be instigated whereas otherwise the matter might be capable of resolution outside of court [LINK to out of court options article?]

Maintenance pending suit application

If the application is made during existing financial remedy proceedings, the maintenance pending suit application form is a general application by way of a Form D11 accompanied by a draft order. It is common practice to also include a statement which outlines the history of the parties’ finances to date, any negotiations which were made, and why the applicant requires MPS.

If MPS is sought and there are no existing financial remedy proceedings in place, you will need to issue financial remedy proceedings first. Financial proceedings can be issued using a Form A. This will also need to be supported by a Form D11.

If the application is made within financial remedy proceedings but before financial statements (Forms E) have been filed, the applicant will also need to file and serve a statement in support (as mentioned above), to explain why the order is necessary and to give up-to-date information about the parties’ financial situation.

The respondent to the application must also file a statement in response at least seven days before the hearing if they have not already filed a Form E.

It is worth noting that MPS orders may be backdated to the date of the application for the matrimonial order but not before.

Please note that these applications will attract court fees.

In summary 

Generally speaking, an MPS is designed to deal with “short term cashflow problems” and its calculation is “somewhat rough and ready.”

An application for MPS should be approached with caution, particularly if it is not a high value case. Every effort should be made to negotiate an outcome before approaching the Court to resolve the situation, and failure to do so might result in a costs order against the applicant.

 

Ending a civil partnership

If you are contemplating ending a civil partnership, there will be many things to consider as you seek to build new lives separately. While the emotional journey is deeply personal to you, understanding the legal process – known as dissolution – is crucial to help ensure a smooth transition.

‘You can rest-assured that the legal process to end a civil partnership is relatively straightforward, and we will guide you through each step and advise you along the way,’ explains Trevor Gay, head of the family team. ‘However, it is worthwhile familiarising yourself with the timelines and steps involved so that you know what to expect.’

When can I end my civil partnership?

It is important to note the one-year rule, in that you must have been in a civil partnership for at least one year before you can apply for a dissolution. This is normally not an obstacle, as the majority of civil partnerships do not break down sooner than a year, however there are always exceptions.

If you find yourself in a situation where you have not been in your civil partnership for at least a year but the relationship has broken down, you can seek advice about a legal separation.

What documents are involved and do I need to give any explanations?

To start the process your solicitor will need your original civil partnership certificate but aside from that, it is rare for the court to require any other documents. The dissolution is granted by way of a final order, which confirms that the civil partnership has legally come to an end.

In terms of satisfying the legal requirement to get a dissolution, the only ground for dissolving a civil partnership is that it must have irretrievably broken down. You do not have to prove that anyone is at fault or give reasons for the breakdown of the relationship, and can simply tell your solicitor to tick the box on the form confirming the civil partnership has irretrievably broken down. This, hopefully, helps to simplify the process for you and avoids unnecessary tension and conflict.

How do I get a dissolution?

Your solicitor will apply to the family court for a dissolution of your civil partnership. This can now be done via a sole or joint online application, or alternatively by post, however the digital process is proving to be faster and more efficient overall. In order to apply online your solicitor will register a case on the online court portal and all steps are completed through the portal and notifications are sent out by email (or by post to the other party if you did not provide an email address for them).

It is important to note that there is a court application fee payable. If possible, you should agree to split the cost with your ex-partner, especially in circumstances where you both actively want to get a dissolution.

How long will it take?

It takes on average six months to be granted a dissolution, as there are stages to be completed and progress will depend on how quickly each stage is actioned by you and your ex-partner.

Conditional order

Once a dissolution application is made and accepted by the court, there will be a 20-week reflection period before you are eligible to apply for the conditional order; a court certificate confirming that there is no reason the civil partnership cannot be dissolved.

During this time, you may need to address other aspects of the relationship breakdown, such as agreeing a financial settlement or child and living arrangements.

This timeframe also allows you to change your mind and withdraw any applications if you decide to reconcile.

Final order

Once you have obtained the conditional order, there is a further waiting period of six weeks and one day before you are able to apply for the final order, which is a court document confirming the civil partnership has been dissolved.

It is advisable to double down on sorting out the connected finances during this time to ensure time-sensitive actions are diarised and on track.

What happens next?

It is likely that you will start to address any connected matters alongside the dissolution application. Typically, these will revolve around arrangements for any children from the relationship, such as with which parent they will live and how they will spend time with the other parent. Dealing with the finances and any property can also take time.

If you have not started the process to resolve any associated finances to the civil partnership, it is imperative that you seek specialist advice to deal with financial claims before obtaining the final order.

Whilst claims can be made after the final order, some rights such as pensions and inheritance will be effected.

You must ensure you extinguish all financial claims against one another by way of a court order, otherwise they could remain live indefinitely.

How we can help

Whether you have just come to the realisation that you wish to end your civil partnership, or you are already on your journey to dissolution, it is always a good idea to seek specialist legal advice to ensure you understand the process, and that your objectives can be achieved efficiently.

For further information, please contact Trevor Gay in the family law team on 0191 297 0011 or email whitley.bay@kiddspoorlaw.com 

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

Providing investments for children

With rising property prices and uncertainty in the mortgage market, it is unsurprising that many children are looking for financial assistance from their parents when purchasing property.  The Bank of Mum and Dad is consequently very much thriving.

What should parents and their child consider before making such a decision?

  • Both parties should seek independent legal advice;
  • Both parties should consider what the legal implications would be if the child suffered a relationship breakdown; and
  • Both parties should consider on what basis the help is being provided i.e. is it a gift or a loan or do the parents wish to have an ownership interest in the property?

Married/Engaged Couples -How can the investment be protected?

If a parent provides an investment to a child who is married or engaged the child should consider whether to enter into a pre-nuptial agreement and/or a post-nuptial agreement.

A pre-nuptial agreement is a bespoke legal document entered into by a couple planning to marry or enter into a civil partnership, which sets out what they intend to happen to their money and property if the marriage or civil partnership were to end by way of divorce or dissolution.

Is a pre-nuptial agreement binding on the Court?

Pre-nuptial agreements are not strictly legally binding on the Court. However the Court will follow the terms of a pre-nuptial agreement unless the effect would be unfair, and providing certain steps were followed when the agreement was prepared.

These include:

  • Did both parties disclose their financial position?
  • Did both parties receive independent legal advice?
  • Did the agreement deal with what would happen if the parties have children and, if not, what effect this would have on the agreement?
  • Does the agreement satisfy the financial needs of both parties?

Are pre-nuptial agreements only for the wealthy?

This is a common misconception.  Pre-nuptial agreements are not only for millionaires, but are also for couples who wish to protect significant assets such as property or investments, for anyone that owns a business, for anyone who is expecting an inheritance, or for anybody looking to ring-fence certain assets as non-matrimonial assets.  This can include property or assets owned by either party prior to the marriage.

How could a post-nuptial agreement help protect assets?

Post-nuptial agreements apply to people who are already married or in a civil partnership and are often put in place after a significant change in the parties’ financial circumstances. A post-nuptial agreement can reinforce an agreement entered into prior to the marriage.

Are post-nuptial agreements binding on the Court?

As with pre-nuptial agreements, post-nuptial agreements are not strictly binding on the Court in the event of a later divorce. They are also likely to be followed by the Court, provided that they are not viewed as unfair in the circumstances.  Again, more weight is likely to be given to an agreement where both parties have disclosed their financial positions and taken independent legal advice on the agreement and its effects.  An important point to note is that with both pre-nuptial agreements and post-nuptial agreements, it is crucial to update the agreement when circumstances change, for example, if the parties go on to have children.

What would happen on divorce if there is neither a pre-nuptial agreement nor a post-nuptial agreement?

In circumstances where the parties are married or have entered into a civil partnership and parents have assisted in purchasing property by way of a gift or loan, without the protection of a pre-nuptial agreement or post-nuptial agreement, it is possible that the investment will form part of the marital pot to be divided between the parties.  This can be particularly upsetting for parents who feel that their hard-earned cash has been lost.

What if the financial assistance was intended as a loan or for the parents to own part of the property?

In those circumstances it is extremely important to record any loan by way of a loan agreement or a Declaration of Trust and to refer to these documents in any pre-nuptial or post-nuptial agreement.  A Declaration of Trust can set out in what proportions the parties own the property and detail any money which was used to purchase the property and when that should be repaid.

What if a child is neither married nor intending to marry?

If the child is living with their partner and not intending to marry, then it is equally important to ensure any gift or loan is protected. This can be achieved in one of the following ways:

  • A Loan agreement

A loan agreement can record the amount of money the parents lend to their child and detail when the money is due to be paid back.

  • A Declaration of Trust

As detailed above a Declaration of Trust can set out in what proportions the parties own the property. It can also set out any money which was used to purchase the property and how the proceeds of sale should be divided on a sale of the property.

  • Cohabitation agreement

A cohabitation agreement can be used to set out two parties’ intentions regarding any property that they own as well as other matters such as cars, savings, personal possessions and day to day expenses.

If you are a parent considering making a loan or gift to a child, or a child considering accepting a contribution, and if you are in a relationship, then we will be able to advise on the best way to protect that contribution.  Parties should also seek separate tax advice about the implications of any potential gift, loan or other arrangement before proceeding.

For more informatiom, please get in touch with our Family Law team on 0191 297 0011 or via email at whitley.bay@kiddspoorlaw.com.

What happens to premarital wealth on divorce?

UK Supreme Court clarifies position on premarital wealth on divorce

If you are thinking about separating, or currently going through a divorce or dissolution of a civil partnership, you may be wondering what happens to the assets you owned before the relationship began. Are they safe? Can your spouse make a claim on them? What does the law say about such assets?

A recent decision by the UK Supreme Court (UKSC), in the case of Standish v Standish has confirmed that non-matrimonial assets, such as premarital wealth, will not necessarily be subject to sharing unless they have somehow been turned into matrimonial assets.

‘Just because an asset was brought into the marriage by one party does not automatically mean it is off the table in a divorce; but it also does not mean you will definitely have to share it,’ explains Trevor Gay, head of the family law team. ‘The courts aim to be fair and the UK Supreme Court has recently made clear that premarital wealth will not be shared as a rule. So, with the right strategy and preparation, we can help you protect premarital assets.’

What are premarital assets?

Premarital assets are things you owned before you got married. This might include:

  • properties;
  • savings and investments;
  • business assets; and
  • family wealth, such as an inheritance.

It is important to remember that such assets might be co-owned with other parties, such as an inherited property shared with siblings, or a trust fund held by others for your benefit.

In general, the courts will consider whether these assets should stay with the person who brought them into the marriage, but it has to consider if it would be fair to do so.

Matrimonial or non-matrimonial?

Assets are categorised into two neat categories: matrimonial and non-matrimonial:

  • matrimonial assets are things built up during your marriage, and often viewed as joint assets;
  • non-matrimonial assets are what each of you brought into the marriage or received independently.

Premarital assets, therefore, fall into the non-matrimonial pot at the outset.

Needs or sharing?

When dividing assets, the courts look at two main considerations:

  • needs – making sure each of you (and any children) are properly housed and financially secure; and
  • sharing – dividing the assets built up during the marriage fairly, often in equal proportions.

Generally speaking, needs will usually trump sharing where one party (or any children of the marriage) would be left with inadequate housing or money to pay the bills if matrimonial assets were simply shared 50/50.

In terms of the non-matrimonial assets, such as premarital wealth, needs might still have to be funded from these if matrimonial assets are insufficient to do so. However, they will not be shared out just because there has been a long marriage.

What has the UK Supreme Court said in Standish v Standish?

In this particular case, the husband brought significant family wealth into the marriage which lasted 19 years. As part of inheritance tax planning, he transferred some of these assets to his wife during the marriage, with the objective of eventually passing a greater share of his wealth to his children.

The UK Supreme Court had to decide whether this tax-planning activity had turned the assets into matrimonial assets.

In this case the Supreme Court concluded that the assets had not been mingled into family life, and they were only transferred for tax-efficiency for the benefit of the children (rather than his wife). Consequently, the Court determined that this action had not turned the husband’s premarital assets into matrimonial assets.

This landmark ruling has provided clarity around what should happen to non-matrimonial assets when it comes to sharing out assets, instead of meeting needs. The courts are focused on what is fair, and premarital wealth can be protected from a divorce, when everyone’s needs have already been met by matrimonial assets.

The case also highlights a very important point about transfer of assets between spouses for tax planning purposes, which is that such an action does not in itself make a non-matrimonial asset a matrimonial one.

Can I rely on the recent UKSC decision to protect my premarital wealth?

The recent court ruling is very clear and sets a firm precedent about ringfencing non-matrimonial assets and premarital wealth on divorce. However, the law is always changing, and each case will turn upon its own facts.

If you are concerned about protecting premarital wealth, here is a list of steps you can consider and discuss with your solicitor:

  • enter into a prenuptial or postnuptial agreement, and this will set out that your premarital assets are not to be shared on any future divorce;
  • keep premarital wealth completely separate to marital life, and do not mingle premarital assets with marital property, investments and expenses; and
  • as well as family law advice, seek tax planning advice to ensure that steps taken for tax-efficiency will not turn your premarital assets into matrimonial assets.

How we can help

Whether you’re planning for the future, or navigating a divorce now, our experienced family law team are here to help.

For further information, please contact Trevor Gay in the family law team on 0191 297 0011 or email whitley.bay@kiddspoorlaw.com.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

Matrimonalisation of assets

We are seeing many more cases with second marriages or with people getting married later when they already have significant assets. It is often the case that during a marriage, with two incomes in a single property, a standard of living can be enjoyed which is not sustainable when there are two households.

During divorce 

During divorce, assets which were once owned solely by one party before the marriage can be used to meet both people’s financial needs.

In divorce cases where there is more than enough money to meet a husband’s and wife’s needs, an analysis of what is matrimonial and non-matrimonial is often carried out. Non-matrimonial assets may be put to one side (ringfenced) and not shared. The sharing principle will then apply to the assets left as generated or acquired during the marriage.

Matrimonalisation

As part of this analysis of what is matrimonial and non-matrimonial, consideration is given to ‘Matrimonalisation’. This is when an asset that was once non-matrimonial i.e. owned solely by one party prior to marriage, becomes matrimonalised during the marriage because of the parties’ dealings with that asset. The asset is then subject to the sharing principle on divorce.

Court of Appeal guidance

A recent Court of Appeal decision in a farming case (Standish v Standish 2024) gives some guidance about the matrimonalisation of assets. In this case, the wife argued that assets acquired by the husband before the marriage (farm/farming business and investments) had been matrimonialised. Some shares relating to the farming business and investments owned by the husband before marrying his wife had been transferred from the sole name of the husband to the wife’s sole name. The wife argued that these assets had therefore been matrimonialised and that they should be shared equally. The first Court agreed with the wife.

However, the husband took the case to the Court of Appeal which held that the farming business and investments were indeed part of the husband’s pre-marital endeavour acquired by him long before marriage and should not be subject to the sharing principle. The assets had not been matrimonialised and as there was enough money in any event – the total assets being £132 million – to provide for the wife’s needs, the non-matrimonial assets should not be shared equally. The Court of Appeal determined that the source of the assets was critical in carrying out an analysis of what is matrimonial and non-matrimonial.

This case saw the Court of Appeal reduce the award to the wife by around £20,000,000. Obviously most cases do not involve even a fraction of the amount in dispute here. It is however it is a principle that can be applied to smaller money cases.

How we can help

If you would like further advice on the matrimonialisation of assets or any aspect of financial proceedings, please do not hesitate to get in touch with us on 0191 297 0011.

 

Supporting clients through divorce & addiction

Nobody Wants to See a Family Lawyer: Supporting Clients Through Divorce and Addiction

Nobody dreams of needing a family lawyer.

There is none of the excitement of buying your first home, or the reassurance of planning for the future. Unlike other areas of law, family law is rarely about happy beginnings. For that reason, we receive far fewer bunches of flowers or boxes of chocolates at the end of a case.

Instead, people come to us at their most vulnerable. Divorce or separation is emotionally draining, and when addiction or mental health difficulties are involved, the situation can become even more destabilising for everyone concerned.

This article explores the challenges that addiction can present in family law matters, and how a thoughtful, experienced solicitor can help.

Understanding the Hidden Nature of Addiction

Addiction is not always obvious and is rarely disclosed at the outset. Clients struggling with addiction may appear outwardly successful, high-functioning and in control. Many become skilled at masking the issue, and for some, their addiction is closely intertwined with the very drive that has brought them professional success.

As a solicitor, establishing a relationship of trust is essential. That starts with being non-judgemental, supportive and patient. It is important to ask the right questions at the right time. Full honesty rarely comes immediately. Guilt, shame and denial are powerful emotions which may affect the client’s ability to speak openly. These feelings also commonly affect the partners of addicts.

Co-Occurring Mental Health Conditions

It is extremely common for addiction and mental health difficulties to coexist. These are referred to as co-occurring conditions.

Research shows that over 70% of drug users and 86% of alcohol users experience mental health problems. Our experience suggests the figures may be even higher. The most common co-occurring issues include anxiety, depression, ADHD, bipolar disorder and personality disorders.

These issues may not be immediately apparent, and clients are not always fully aware of their impact. Nevertheless, as practitioners, we must remain alert to the likelihood that these conditions may exist and factor them into our approach.

Considering Mental Capacity

The law assumes that every person has capacity unless there is strong evidence to the contrary. Under the Mental Capacity Act 2005, a person lacks capacity if they are unable to make a specific decision because of an impairment of, or disturbance in, the functioning of the mind or brain.

Importantly, that impairment or disturbance does not have to be permanent. Addiction, even where it causes only temporary effects, can impact decision-making capacity.

Solicitors must remain vigilant. Has the client’s tone changed in emails or conversations? Are they responding less frequently or inconsistently? These subtle changes may indicate a deeper issue which could affect their ability to provide instructions.

Communication and Boundaries

When a client is experiencing addiction, it is essential to agree from the outset how communication will work.

This includes:

  • Establishing clear methods of contact (such as email, phone or meetings)
  • Taking next-of-kin or emergency contact details
  • Identifying and recording any professionals involved in their support
  • Agreeing the circumstances in which their emergency contact may be approached

These simple but important steps can help provide structure and clarity for the solicitor-client relationship.

We also believe that therapeutic support is equally important for the spouse of someone suffering with addiction. At Kidd and Spoor, we are proud to connect our clients and their families with trusted professionals who specialise in addiction.

How the Family Court Approaches Addiction

Many people see addiction as a moral failing. Spouses often feel betrayed or abandoned and may struggle to accept the behaviour of their partner.

However, the family court takes a different approach. Addiction is viewed as an illness and is often classed as a mental disorder. Judges do not apportion blame, and the court will not allow one party to cherry-pick negative aspects of their spouse’s behaviour. The approach reflects the principle of “in sickness and in health.”

This can be particularly difficult for the non-addicted spouse to understand when financial issues are involved.

It is common for a spouse to want any funds spent on addiction to be ‘added back’ into the matrimonial pot. However, the case of Vaughan v Vaughan [2007] made it clear that this will only be considered in cases of “wanton dissipation of assets”. There must be clear evidence of gross and obvious financial misconduct. Courts are more likely to add back a £50,000 engagement ring purchased for a new partner than £750,000 spent on gambling or drugs.

Court is Rarely the Right Forum

Court proceedings are usually not the best option for clients suffering with addiction. The formal, high-pressure environment can worsen stress and instability, for both parties and any children involved.

Solicitors should always explore non-court options in these circumstances. These include:

  • Mediation, including lawyer-supported mediation
  • Arbitration
  • Private dispute resolution hearings

These methods are often more flexible and focused on resolution. They allow both parties to feel more supported and more in control of the outcome.

Keeping Children at the Centre

When addiction is a factor, decisions relating to children become particularly complex.

The law in England and Wales begins with the presumption that the involvement of both parents in a child’s life furthers that child’s welfare. However, when addiction is involved, safeguarding becomes the overriding priority.

As family lawyers, our role involves more than simply securing the best outcome for our client. We must help them to:

  • Support their child’s relationship with the other parent, where it is safe to do so
  • Provide stability despite an unpredictable situation
  • Acknowledge the problem without attacking the person
  • Focus on the child’s needs, rather than their own feelings

Our responsibility is to protect the child’s wellbeing while guiding the family through practical and safe arrangements.

Early agreement, reached with the support of lawyers or through mediation, often gives children the best chance of feeling that their family has been restructured, rather than lost.

Final Thoughts

Addiction adds an extra layer of difficulty to an already painful process. As family lawyers, we are here to support our clients with empathy, legal clarity and a realistic plan for moving forward.

We may not always receive gifts at the end of a case, but the trust we build with clients during these difficult times is far more rewarding.

Contact Us

If you are going through a divorce or separation and addiction is a factor, our experienced team can help.

Please contact Trevor Gay or Kennedy Smart on 0191 297 0011 to discuss your situation in confidence.

What rights do I have regarding pensions in my divorce or dissolution of a civil partnership?

When going through a divorce or dissolution of a civil partnership, there are many important things to consider and one area that often requires careful attention is the question of what will happen to any pensions.

It is helpful to think of your pensions as your future security; savings you have built up over the years to provide for you both in your retirement which you had been planning to spend together. One person may have been able to build up a bigger pension pot as they concentrated on their career, while the other person sacrificed earning and saving opportunities to focus on caring responsibilities.

‘When we talk about pensions on divorce or dissolution and how to divide them, it is not always as straightforward as splitting a bank account,’ explains Trevor Gay, head of the family law team. ‘Because you and your spouse built your lives together, the law recognises that these pensions are often considered a joint asset, so something you both have a stake in.’

A dispute can arise if the person with the larger pension pot does not see this as a shared asset.

Am I entitled to a share of my spouse’s pension?

You might be wondering whether you are even entitled to a share of your spouse’s pension, but generally the answer is ‘yes’. Pensions built up during the marriage are usually considered marital property, regardless of whose name the pension is in.

It is important to understand that this does not automatically mean there will be a 50:50 split. The courts will consider all of the relevant factors before deciding how those pension assets should be fairly divided, such as:

  • the length of the marriage;
  • respective ages;
  • respective financial needs;
  • contributions to the family;
  • income and future earning capacity; and
  • the value and type of pension pots on both sides.

A particular consideration for the court would be whether there is a significant disparity in your respective pension pots, and if the party who has less in the pot has the ability to build theirs up or not. For instance, if you are still in your early 40’s but gave up work to raise the children, you may have had few opportunities to make pension contributions while your spouse flourished in their career and maxed out their pension contributions. A court would explore whether you still had enough time to get back into gainful employment and build up your pensions to an adequate amount before you reach pensionable age. If it decided you did not have that ability, it could award you a share of your spouse’s pension pot to try and achieve some sort of fair and reasonable parity.

What specific pensions information do I need to give to my solicitor?

There are different types of pensions and your solicitor will need to consider all the schemes you each have in place.  For each pension scheme, you can start by providing the following:

  • pension scheme provider’s name and contact details;
  • policy or membership number;
  • the type of pension scheme – e.g. personal pension or SIPP?
  • the cash equivalent transfer value (known as CETV or CE value);
  • the most recent annual pension statement – you should have this for your pension arrangements and it would likely contain all of the information points above;
  • start date of the pension; and
  • accurate details of when your marriage began and ended.

If you do not have an annual statement, there is a specific form that your solicitor can complete and send to the pension company for the relevant details.

Once your solicitor has gone through all the information on the pensions you are able to provide, they will advise you about whether further details or documents are needed. For example, the exact value of a defined benefit pension is sometimes not reflected in the cash equivalent transfer value because those pensions depend on things like your salary and length of service, not just how much you put in. In such a situation, you might be advised to ask a pensions expert (like an actuary) to provide an in-depth report on the pension plan and advise on its actual value.

We lived together before marriage, does that count?

Cohabitation before marriage may be relevant but it would have to be seamless cohabitation, in essence where you lived together without any breaks and that led to the marriage. Generally, a divorce or dissolution considers the assets accrued during the marriage or civil partnership. However, the court has a wide discretion in achieving fairness, especially in a ‘needs case’ which is where all assets may have to be put into the pot, whether accrued during the marriage or civil partnership, or otherwise, to meet the reasonable needs of both parties.

The approach tends to be different if assets are abundant and plentiful, where the court would look at sharing assets out, rather than doing whatever is necessary to meet basic needs. In such a scenario, the party with the large pension pot would argue that only the value of the pension from the date of marriage to separation should be considered; on the other side of the fence, it would be argued that contributions made during the seamless cohabitation before marriage should also be factored in.

How does the court divide a pension?

There are three main ways the court can divide a pension on divorce or dissolution, to achieve a financial settlement. These are:

  1. A pension sharing order – often this is the preferred method as it can help achieve a clean break so you are not financially tied to your former spouse. It is essentially an order telling the pension provider to carve out a portion of one spouse’s pension arrangement, and transfer that to the other spouse. Some providers offer the option to have a separate pension plan with them, or you can choose to invest your share with a different pension provider.
  2. A pension attachment order – this is less common as it keeps parties tied to one another. The pension would fully remain in one spouse’s name and the provider would be told to pay a portion of the pension benefits (income and lump sum) to the other spouse. There would be no separate pension plan for the receiving spouse and a lot would still depend on the other party. A clean break would not be achieved.
  3. Pension off-setting – this approach achieves a clean break without directly sharing the pension if there are sufficient other assets. Once a value is agreed for the relevant pension(s), you can decide to off-set your portion against other available assets. For instance, if your spouse had a pension worth £200,000 and it was settled that you had a claim for 50% of it, but you preferred to keep the matrimonial home instead of having a pension share, you could offer that your spouse retains their pension in exchange for the property being signed over to your sole name. This would only work if your spouse’s settled share in the property matched your pension claim. This would help to achieve a clean break.

How we can help

When going through a divorce or dissolution proceedings, settling the finances is always the most stressful element. Pensions are complex arrangements by their nature and it is important that you seek advice from one of our experienced family law specialists at the earliest opportunity to guide you in the best direction.

For further information, please contact Trevor Gay in the family law team on 0191 297 0011 or email whitley.bay@kiddspoorlaw.com

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.