Standish v Standish: A Landmark Judgment Reinforcing the Importance of Prenuptial Agreements

Posted On: 07-07-2025
Created By: Manak

The recent Supreme Court ruling in the high-profile case of Standish v Standish [2025] UKSC 26 has sent shockwaves through the legal and financial planning communities. The judgment not only clarified the treatment of non-matrimonial assets in divorce proceedings but also reignited the conversation around the importance of prenuptial agreements—particularly for high-net-worth individuals and families engaging in estate planning.

Case Summary

Clive Standish, a retired banker and former CFO of UBS, transferred approximately £77.8 million in assets to his wife, Anna Standish, in 2017 as part of a tax planning strategy to mitigate inheritance tax liabilities. The intention was for these assets to be placed into trusts for the benefit of their children. However, the trusts were never established, and the assets remained in Mrs Standish’s sole name.

When the couple divorced in 2020, the question arose: had these assets become matrimonial property and thus subject to the sharing principle?

Supreme Court’s Key Findings

  • Non-matrimonial property (NMP)—typically assets acquired before marriage or by inheritance/gift—should not be subject to the sharing principle unless it has been "matrimonialised."
  • Matrimonialisation occurs when parties treat NMP as shared over time. Mere transfer of title, especially for tax purposes, is insufficient.
  • The Court ruled that 75% of the transferred assets retained their non-matrimonial character and should revert to Mr Standish. Only 25%—representing growth during the marriage—was subject to equal division.

This decision reduced Mrs Standish’s award from £45 million to £25 million, marking one of the most significant reductions on appeal in English legal history.

Why This Matters: The Case for Prenuptial Agreements

The Standish ruling underscores a critical truth: intention and documentation matter. Had the couple entered into a prenuptial or postnuptial agreement clearly outlining the treatment of such transfers, much of the litigation could have been avoided.

Key Reasons to Consider a Prenup

ReasonExplanation
Asset ProtectionSafeguards pre-marital wealth, inheritance, or business interests from being divided on divorce.
Clarity & CertaintyReduces ambiguity and potential disputes over asset division.
Tax & Estate PlanningComplements strategies like gifting or trust creation by clarifying ownership and intent.
Second Marriages & Blended FamiliesEnsures children from previous relationships are protected.
Business ContinuityPrevents disruption to business ownership or control in the event of divorce.

Legal Standing in the UK

While prenuptial agreements are not automatically binding in England and Wales, courts increasingly give them significant weight—especially when:

  • Both parties had independent legal advice
  • There was full financial disclosure
  • The agreement was entered into freely and well in advance of the wedding
  • The terms are fair and meet the needs of both parties

The 2010 case Radmacher v Granatino set the precedent, and the Law Commission has since recommended formal legal recognition of prenups—a proposal still under government review.

Final Thoughts

The Standish case is a wake-up call for couples—especially those with significant or complex assets. It reinforces the need for proactive legal planning and the value of prenuptial agreements in safeguarding wealth, clarifying intentions, and avoiding costly disputes.

At Manak Solicitors, our family law specialists are experienced in drafting robust, fair, and enforceable prenuptial agreements tailored to your unique circumstances. Whether you're planning a marriage, navigating estate planning, or seeking to protect family wealth, we’re here to help.

Contact us today to schedule a confidential consultation

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Legalities

Manak Solicitors is a trading name of Manak Lawyers Limited registered at Companies’ House in England & Wales Company Number: 09877015

Manak Lawyers Limited is authorised and regulated by the Solicitors Regulation Authority under SRA No. 627738, 628462, 648124, 8009629 & 8011568

Manak Lawyers Limited does not accept service by fax or email

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