The recent case of ST v AR [2025] EWFC 4 has become a significant reference point in UK family law, shedding light on how inherited wealth is treated in divorce proceedings and how courts balance fairness with the realities of substantial financial resources. The decision provides clarity for separating couples and professionals advising on financial remedies.
Background
The case involved a husband, aged 70, who had inherited around £121 million, and a wife, aged 51, who had not been employed during their marriage. The couple had a nine-year-old daughter and had moved to England in 2020. Following the breakdown of the marriage in 2023, the wife sought a substantial financial settlement, citing her housing and income needs.
Key Legal Issues
Two main issues were addressed by the court:
- Inherited Wealth
The court had to consider whether the husband’s inherited assets, originally considered non-matrimonial, had become integrated into the family’s lifestyle to such an extent that they should be shared. Building on previous decisions, particularly Standish v Standish [2024], the court confirmed that inherited assets can become matrimonial if they are used to meet the family’s needs. - Assessing Financial Needs and Fairness
The wife initially sought approximately £27 million to cover housing, income provision, and child maintenance. The court had to assess the reasonableness of these claims and ensure the settlement met her needs while recognising the source and nature of the wealth.
Court’s Decision
The court awarded the wife a lump sum of £13.75 million, reflecting a fair outcome in the circumstances:
- Housing: £4 million to provide the wife with a suitable home and cover associated costs.
- Income: £8 million to secure an annual income of £385,000, reducing by 25% upon retirement.
- Contingency: £1.5 million to address any unforeseen financial needs.
- Legal Costs: £250,000 to assist with litigation loans.
The final division of assets represented a 91% to 9% split in favour of the husband, with the court balancing the non-matrimonial source of the assets against the wife’s reasonable needs.
Key Takeaways
- Treatment of Inherited Assets: Inherited wealth isn’t automatically excluded from financial remedy claims. If it has been used to support the family lifestyle, it may be considered part of the matrimonial pot.
- Fairness Over Equality: Courts prioritise fairness in dividing assets rather than an automatic 50:50 split, especially where significant non-matrimonial property is involved.
- Practical Implications: This decision will guide future cases involving inherited wealth, providing a clearer framework for balancing needs and fairness.
Conclusion
ST v AR highlights the courts’ nuanced approach to complex financial remedy claims, particularly where inherited wealth is at play. It underscores the need for careful advice and realistic expectations when dealing with substantial family resources. For anyone facing similar issues, tailored legal guidance is essential to achieving a fair outcome. Contact one of matrimonial finance solicitors at NLS.
Solicitor
The author of this article is Mohammad Mahboob. Mohammad is a highly experienced family law solicitor with a particular specialism in divorce and financial remedies. He is dedicated to helping clients achieve fair and practical financial settlements following the breakdown of a marriage or relationship. His strategic approach, combined with a compassionate manner, ensures that clients receive expert guidance while feeling supported throughout what can often be a challenging process.
