Splitting from a partner can be a very upsetting and stressful time, especially when there are children involved and financial issues to resolve. However, it is incredibly important that all financial issues are resolved before parties are divorced. One party cannot seek financial provision from the other after the parties are divorced. One of the first things that parties will be told when they take legal advice following a separation is that the matrimonial property will require to be divided between the parties.
What, exactly, constitutes matrimonial property? Matrimonial property is all property belonging to the parties (whether owned jointly or by either of them individually) at the relevant date, which was acquired by them during the marriage but before the relevant date.
The ‘relevant date’ is the earlier of the date on which the parties ceased to cohabit or the date of service of the summons in the action for divorce. In practical terms, the relevant date is usually the date the parties actually separate. It may be helpful to clarify that this does not necessarily mean that one party has to leave the matrimonial home; the date of separation is the date that the parties ceased living together as husband and wife.
As stated, matrimonial property is property which was acquired during the marriage but before the relevant date. Any assets acquired before the marriage or after the date of separation are not deemed to be matrimonial property. Also, any assets acquired by way of gift or inheritance from a third party, even if acquired during the course of the marriage, are not matrimonial property. There are, of course, exceptions.
The first exception is that, if property was purchased before the date of marriage for use as a family home, or furniture was bought for the family home, then that property is deemed to be matrimonial property. The second exception is that, in the event that any non-matrimonial property is sold during the course of the marriage, but before the relevant date, and the proceeds of sale are used to buy something else, then that ‘something else’ will be deemed to be matrimonial property. Similarly, if the non-matrimonial property is converted into another form (e.g. Stocks and shares transferred into an ISA) then the value of the new ‘form’ of asset can be deemed to be matrimonial property.
Matrimonial property can be any asset that falls within one of the above categories. This includes pensions (private and state), vehicles, jewellery, cash, ISAs, stocks, shares, the dog and even the vintage record collection. The division of matrimonial property can be just as acrimonious as agreeing the contact arrangements for the children, sometimes more so. The important thing is to ensure that you have taken independent legal advice to ensure that your rights, your financial position (and your Jimmy Choos!) are protected.