What a UK Supreme Court Ruling Can Teach New Jersey Couples About Protecting Assets in Divorce

divorce assetsA recent UK Supreme Court ruling is making international headlines, and for good reason. In the case of Standish v. Standish, the court ruled that roughly £80 million (about $100 million) transferred from a retired UBS banker to his wife during their marriage would not be subject to asset division in their divorce. Why? Because the court found those assets weren’t truly part of the marital pot.

Even though this case happened across the Atlantic, it raises important questions for couples here in New Jersey:

In high net worth divorce with complex assets, what counts as marital property — and what doesn’t? And how do you protect what’s yours?

Let’s break it down.

The Standish Case in a Nutshell

In 2017, Clive Standish, a retired UBS executive, transferred £80 million to his then-wife Anna during their marriage as part of a long-term tax-planning strategy. The plan was to have the money placed into an offshore trust for the benefit of their children.

The couple decided to divorce before this plan could be carried out. At the time of the filing, Anna argued that the assets should be considered part of the marital estate and split between the pair.

The UK’s highest court disagreed. Even though the assets were in Anna’s name, the court ruled that:

  • The transfer was for tax purposes, not a gift or sharing gesture between spouses.
  • The money came from Clive’s pre-marriage wealth.
  • The funds were earmarked for the couple’s children and were explicitly not intended to fund a shared lifestyle.

The result: Anna received £25 million in the marital settlement, not the nearly £45 million she sought.

Why This Ruling Matters (Even in New Jersey)

While UK law and New Jersey law aren’t identical, the case highlights a critical point that does apply here at home:

Just because an asset are transferred during a marriage doesn’t automatically make it “marital property.”

In New Jersey, the law distinguishes between marital assets (subject to equitable distribution) and separate assets (typically not divided in divorce). However, the line between the two can easily blur, especially in high-net-worth marriages where wealth management strategies, family trusts, and estate planning play a role.

Here’s what this case reinforces for couples in New Jersey:

1. Intent Matters

Courts look closely at how assets were treated during the marriage. What is the “true nature” of the asset? Was the asset meant to be shared? Or was it earmarked for estate planning or the children’s future? Is there any evidence the assets were commingled and/or freely used by either spouse?

In the Standish case, even though the wife legally held the investments, the court found she was more of a temporary steward than a true co-owner. That same idea can carry weight in a New Jersey courtroom, especially if there’s documentation to back it up.

2. Paper Trails Protect You

If you’re transferring money or property for tax or estate planning reasons, get it in writing. Document the purpose of the transfer and how the asset should be treated in the event of divorce.

This could include:

  • A postnuptial agreement that spells out which assets are shared and which aren’t.
  • Clear trust documents showing funds are intended for children or other beneficiaries.
  • Records that demonstrate no commingling (e.g., keeping separate accounts, not using the asset for joint expenses)

3. Title Alone Doesn’t Mean Ownership

Putting your spouse’s name on a deed, investment account, trust or even a car note doesn’t automatically mean they own half. What matters is how the asset was used, treated, and intended. In New Jersey, courts examine the “true nature” of the asset, not just whose name is on the paperwork.

4. The Bigger the Asset, the More at Stake

For couples with complex financial portfolios, family wealth, or children from previous relationships, planning ahead is essential. A casual transfer today could become a major point of contention tomorrow. Even if you’re not planning for divorce, planning for clarity can save time, money, and emotional strain.

How to Protect Yourself

If you’re thinking about divorce, or you just want to be smart about how assets are handled during your marriage, here are steps that can help you protect yourself:

Consider a prenup or postnup. These agreements are not just for celebrities or billionaires. They can be a smart tool for any couple who wants clarity and fairness.
Keep good records. Especially if you’ve brought wealth into the marriage, made significant transfers, or received large gifts or inheritances.

Talk to a lawyer before making big asset moves. What seems like a simple tax or estate planning decision could have long-term implications.

What’s best for your future?

The Standish ruling is a reminder that courts don’t just look at when an asset was transferred, they look at why and how it was treated. For New Jersey couples, especially those with significant assets or family wealth, this case could be a wake-up call to be proactive.

Whether you’re entering a marriage, or preparing to leave one, the best time to protect your assets is before they become a battleground.

Need help making smart financial decisions before, during, or after divorce? Our experienced family law team is here to guide you with clarity, discretion, and strategy that protects what matters most. Safeguard your future today. Call us at 888-888-0919 to schedule a confidential consultation with one of our trusted family law specialists.

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