Matrimonial VS Non Matrimonial Assets – What You Need To Know During a Divorce

During a divorce or partnership dissolution, dividing assets becomes complicated, especially when businesses are involved. However, some practical steps can be taken to protect assets.

Identifying matrimonial and non-matrimonial assets is essential. When considering divorce and business assets, accurately valuing the business is necessary. The courts often allow the business to remain with the founder, however, the business assets’ division depends on other high-value assets that may be utilized to offset a spouse’s entitlement.

Protecting assets from divorce can be achieved through pre and postnuptial agreements, trusts, and loans. A prenup outlines how all assets will be divided if the relationship ends. While not legally binding, it is often used as a reliable guide by the courts if it satisfies certain criteria. Similarly, a postnuptial agreement agreed upon during the marriage shares the same characteristics and can protect premarital assets.

Any loans should have detailed agreements with both parties signing to avoid disputes, but they can still be contested if one party claims it was a gift.

It’s important to distinguish matrimonial from non-matrimonial assets and seek expert legal advice when setting up trusts to ensure they offer genuine protection. For guidance and to achieve the best possible result it may be necessary to have legal representation, and you may also need tax experts, forensic accountants, and mediators.

Thursfields Solicitors offers comprehensive services to protect your matrimonial assets during divorce, offering a range of specialisms, from tax experts to family mediators, to offer lasting solutions to financial arrangements, child arrangements, and more. Thursfields can also provide pre- and post-nuptial agreements, and trust advice, to help protect assets. To find out more information, click here.