Matrimonial Assets vs Non-matrimonial Assets

What are matrimonial assets?

Matrimonial assets refer to items that have been regarded as joint or acquired throughout the relationship, irrespective of whose name appears on the title. These assets may encompass the family home, additional properties owned by the couple, bank accounts, shares and investments, jointly purchased vehicles, furniture, personal belongings, and businesses formed during the marriage.

The specific type of asset doesn't matter. What qualifies it as a matrimonial asset is whether it was acquired by either party during the marriage or while living together prior to marriage, or if it was utilised by both parties and regarded as a shared asset.

It is essential to recognise that any property acquired before a marriage, intended specifically to serve as the family home, is viewed as a matrimonial asset. This includes any furniture purchased for that property as well.

In the case of long marriages, all assets are often deemed matrimonial unless a pre-nuptial or post-nuptial agreement specifies otherwise.

What are non-matrimonial assets?

Assets can be classified as non-matrimonial if they were obtained by either spouse prior to marriage or introduced into the marriage from an outside source. Examples include:

• Properties acquired prior to the marriage (as long as they were not utilised as the family residence).
• Inheritances acquired either prior to or during the marriage (as long as they have been maintained separately)
• Gifts for the family that are specifically meant for one spouse.
• Separate business interests

The classification of a non-matrimonial asset can differ from one situation to another. If these assets merge with your spouse’s assets during the marriage, it may become challenging to pinpoint what qualifies as a non-matrimonial asset. For instance, if you modify your personal property to make it jointly owned by both you and your partner, this could complicate the distinction.

How are matrimonial and non-matrimonial assets dealt with in a divorce? 

Matrimonial 

The goal during a divorce is to achieve a financial settlement that both parties view as equitable and that addresses the needs of each individual; however, this can often be a challenging endeavour.

The division of matrimonial assets during a divorce can be quite unpredictable. While it often begins with a 50/50 split, this percentage can be adjusted to ensure a fair resolution that meets the needs of both parties. The specifics can vary significantly based on the unique circumstances of each case and may be influenced by a wide array of factors, such as:

• An individual’s income
• The future earning capacity of each spouse
• Each party’s contribution towards the marriage (financial and non-financial) 
• What other assets there are
• The reasonable needs of both parties
• Any special circumstances, e.g., disabilities

When it comes to matrimonial assets, the original purchaser or earner of the asset is irrelevant. In the court's view, all assets can be subject to division in a financial settlement.

Non-matrimonial

Parties have a weaker claim to non-matrimonial assets in a divorce. These assets are normally kept separate from the pot of matrimonial assets, which means you do not have to share them with your former spouse.

Nonetheless, there are instances where a court might find it essential to incorporate these assets into the financial division. Ultimately, the division of non-matrimonial assets during a divorce will be influenced by the individual needs of each party and the unique aspects of your particular case.

It is crucial to consult with a solicitor to gain a clearer insight into your personal situation. They can provide guidance on how your non-matrimonial assets might be impacted during a divorce.

How can Hegarty help? 

At Hegarty, our clients can expect friendly, clear, and constructive support from our family law experts, who are dedicated to providing you with all the assistance you may need.

We recognise that divorce can be an exceptionally challenging period for everyone involved. Our team is committed to providing compassionate support while guiding you through every step of the divorce process.