When does “my money” become “our money” in a divorce?

It’s a question many couples may never think about until it’s too late.

A recent family law case has highlighted an important concept: “matrimonialisation.”

In simple terms, an asset that started life as one spouse’s personal/non-matrimonial asset can, depending on how it is treated during the marriage, become treated as a marital asset when the couple divorces.

But it’s not automatic.

Consider this example…

Imagine one spouse enters a marriage with a substantial pension built up over many years.

During the marriage:

• The pension continues to grow

• The couple make financial decisions around it

• They may regard it as part of their future financial security

• One spouse may make other financial or lifestyle sacrifices because they expect that pension to support them both
  

Could that pension eventually be treated as matrimonial?

Potentially — but the answer depends heavily on the circumstances.

In BS v HC [2026], the court considered a pension worth around £3 million. The judge concluded that approximately 55% had been accrued during the marriage and should be shared.

However, the court did not conclude that the entire pension had become matrimonial simply because the parties were married.

And another recent case, RRE v JPR, reinforced that putting an asset into the other spouse’s name does not necessarily make it matrimonial — particularly where the transfer was made for tax reasons.

The takeaway?

When it comes to divorce, “whose name is it in?” is only part of the story.

The history of the asset, how it was treated, how the couple relied upon it and what happened during the marriage can all matter.

For anyone with significant pre-marital wealth, pensions, investments, property or family assets, understanding these issues early can be extremely important.

ELS Legal — Before Divorce Divides Assets, Understand Their History.

This post is for general educational purposes only and does not constitute legal advice. For further information please contact ELS Legal by telephone on 0203 149 8488 or by email at info@els.legal.