What are matrimonial assets?
Matrimonial assets are those which have been accumulated by the parties during the marriage as part of their joint endeavour. Typically, they might include the family home, pensions, or any savings that have been accumulated through earnings.
What are non-matrimonial assets?
Non-matrimonial assets are those which have come from outside of the marriage, so not from the parties’ joint endeavours. They might include assets owned by one party before the marriage, inheritance, or gifts.
How are salaries and bonuses considered on divorce?
Salaries are not assets, but if someone earns more than they spend, then excess income will become savings, which are assets. If the savings are accumulated during the marriage, they will be classed as matrimonial.
Bonuses are a bit of a grey area. Bonuses earned during the marriage are likely to be classed as matrimonial, even if they are paid after the parties separated, but the more time passes after separation, the less likely bonuses are to be classed as matrimonial. Generally, after three to five years, bonuses are unlikely to be classed as matrimonial.
Salaries and bonuses are likely to be used to accumulate matrimonial assets during a marriage, for example, to purchase the family home, cars and other assets. In this capacity, income will become matrimonial assets.
How are matrimonial and non-matrimonial assets treated in a divorce?
Matrimonial assets are subject to the presumption that they will be shared equally between the parties on divorce. That presumption may be rebutted. In many cases, one party will need more than half the assets. “Need” in this context will often override the presumption of equality.
Non-matrimonial assets are not subject to that presumption at all. That is not to say they definitely won’t be included, but in many cases they can be left with the party who owns them. If, however, the matrimonial assets are not sufficient to meet the other party’s needs, non-matrimonial assets may be used to bridge the gap.
For further information on the division of assets in divorce, or to understand how assets might be shared, contact our expert Family law solicitors by email or call +44(0)3333 231580.
