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What is the difference between matrimonial and non-matrimonial assets?

Matrimonial assets tend to be those which have been generated or accumulated during the marriage whereas non-matrimonial assets tend to be assets which are acquired outside of the marriage such as assets owned before marriage or assets received by one party during the marriage without contribution from the other such as through inheritance or a gift.

The discretion of the court when making financial awards is wide ranging and the way the court will deal with this distinction varies from case to case so it is always important to seek advice about your particular circumstances. However, in broad principles, any asset which is “matrimonial” in nature is usually shared unless there is good reason not to. If an asset is non-matrimonial, an argument could be raised that there ought to be a departure from an equal share of the asset to reflect the fact it is from a source external to the marriage. However:

  • If financial resources are limited such that a party’s needs cannot be met without using the non-matrimonial property, the fact it is non-matrimonial will carry little weight, if any.
  • The family home is seen as core to the marriage and is often treated differently. It is invariably treated as a matrimonial asset even if it would have been non-matrimonial in nature.
  • If a non-matrimonial asset has been intermingled with a matrimonial asset, a court may place less weight on the fact it started as non-matrimonial in nature.
  • If the parties were married for a short period of time, a court may place greater weight on the fact that an asset is non-matrimonial and may be persuaded to allow a greater departure from equality than if the parties have been married for a long period of time.

The court will always have a mind to fairness and is likely to take a step back and consider whether the overall division of the assets is “fair” bearing in mind the parties respective financial and non-financial contributions to the marriage.

Related FAQs

I have recently bought or sold a business. How will earn outs and deferred consideration be affected by coronavirus?

A common feature of corporate acquisitions is that part of the consideration is paid on deferred terms or by way of earn out over a period of years following completion. Where deferred consideration is payable, this is either on the basis that outstanding payments will be made on scheduled dates or, less usually, subject to certain agreed (typically financial) objectives being met. These objectives almost always relate to a period before completion of the deal and are dealt with as part of a completion accounts mechanism.

If, after deploying all control measures the risk is still deemed too great for employees to work safely, then what should employers do?

The law says that if after assessing a risk and considering all the control measures available to you, you cannot undertake a task safely – then you should not undertake the task.

If that means taking BAME workers out of higher risk frontline work, that is what will have to be done.

Beware of workers saying “we’ll accept the risk” – it does not protect you against regulatory/enforcement action or civil claims.

My dad has died and has left everything 50/50 to me and my sibling. However, I know that he gave my sibling a large sum of money before he died. Can this be deducted from my sibling’s share of the estate?

You will need to check the provisions of the Will. The Will might say whether your dad intended to set the amount of gift off against your sibling’s share of their estate.

If your dad intended the sum of money he gave to your sibling as a completely separate gift, then you cannot deduct the sum of money from their share of the estate. However, your sibling will have to prove that this was your dad’s intention when he made the lifetime gifts, as it is presumed that a person would not make the same gift twice (known as the rule against receiving “double portions”).

How is an establishment defined?

The definition of a relevant establishment is a question of fact for an Employment Tribunal. Guidance from case law says that ‘establishment’ should be interpreted very broadly (so as to avoid employers escaping the need to collectively consult), and may consist of:

  • A distinct entity
  • With a certain degree of permanence and stability
  • Which is assigned to perform one or more tasks
  • Which has a workforce, technical means and a certain organisational structure to allow it to do so

However, there is no need for it to have the following:

  • Legal, economic, financial, administrative or technological autonomy
  • A management which can independently effect collective redundancies
  • Geographical separation from the other units and facilities of the undertaking
What is the claim period for Flexible Furlough?

Employers had until 31 July 2020 to make any claims for claim periods up to 30 June 2020. That was the end of the old scheme.

From 1 July 2020, claim periods must start and end within the same calendar month and must be for at least 7 days unless you are claiming for the first few days or the last few days in a month.

You can only claim for a period of fewer than 7 days if the period you are claiming for includes either the first or last day of the calendar month, and you have already claimed for the period ending immediately before it.

For example, if an employee is furloughed for 7 days spanning a month. You can claim the last 3 in one month, and 4 from the next.

The crucial point is that you cannot make claims that cross calendar months.

The first time that you could make a claim for days in July 2020 was 1 July 2020. You could not claim for periods in July 2020 before this point.