When couples marry or enter into a civil partnership, the law in England and Wales generally treats assets as part of the “marital pot” available for division if the relationship ends. A prenuptial agreement is often seen as the most direct way to ringfence wealth acquired before the marriage, inherited funds or family property, but it is not the only option.

Protecting assets without a prenup is more complex, because the family court has wide discretion to divide matrimonial assets in a way it considers fair, taking into account the financial needs of both parties and any children. With that said, there are asset protection strategies that can help, provided they are consistent with family law and supported by proper legal advice.

In this blog, we look at how the law distinguishes between matrimonial and non-matrimonial assets, the alternatives to prenuptial agreements such as postnuptial agreements and trust arrangements and the practical steps you can take to protect family wealth in the event of divorce proceedings or civil partnership dissolution.

Matrimonial vs non-matrimonial assets

Matrimonial assets are those built up during the relationship, such as the family home, jointly owned property, savings, pensions and other financial resources gained while the couple is together. This includes a property used as the family home held in the name of one party only. 

Unlike matrimonial assets, non-matrimonial assets are those acquired outside the relationship. Examples include property purchased before marriage, inherited funds kept separate from joint money, financial gifts or assets held through family businesses.

During divorce proceedings, the family court will distinguish between the two, but the distinction is not absolute. If financial needs cannot be met from matrimonial assets alone, the court can bring non-matrimonial assets into the settlement. A settlement is the financial outcome decided either by agreement between the parties or, if no agreement is reached, by the court. It can include lump sum payments, property transfers or ongoing spousal maintenance, aiming to achieve fairness based on each person’s needs and resources. Full financial disclosure is required in every case, and clear records can show when and how certain assets were acquired.

Because this distinction is not always enough to protect wealth on its own, couples sometimes turn to other asset-protection strategies. These alternatives to a prenuptial agreement can provide greater certainty about how assets may be treated if a relationship ends although this is subject to the overriding ability to meet both parties’ needs.

Alternatives to a prenuptial agreement

Even if you don’t have a prenuptial agreement in place, there are still ways to protect pre-marital assets, inherited wealth or other financial assets acquired outside the relationship. With the right legal advice, these steps can give you more certainty about how assets may be divided if divorce proceedings or a civil partnership dissolution takes place. It is important to discuss these circumstances at your earliest opportunity, even if you do not believe a divorce is likely, to ensure they are suitably protected.

Postnuptial agreements

Similar to prenups, however postnuptial agreements are signed after a marriage or civil partnership has begun. They set out how assets will be divided if the relationship ends. Courts in England and Wales increasingly give weight to postnups, provided both parties had independent legal advice, made full financial disclosure, freely entered into the agreement and the outcome would be broadly fair and would meet needs.

Trusts and family arrangements

Some people place assets into trusts for children or other beneficiaries. This can protect inherited wealth or family property, but the court will still examine the arrangement if it looks as if it is designed to avoid a fair financial settlement.

Property arrangements and notices

Where one party owns a property, steps such as registering unilateral notices or structuring ownership can sometimes protect interests. These measures may help but do not override the family court’s discretion in divorce proceedings.

Because each of these approaches carries its own risks and limitations, seeking specialist legal advice is the best way to understand which option is most suitable for your circumstances and how it can be put in place effectively.

Practical steps to protect your assets

Even without formal agreements, there are steps you can take that may reduce the risk of disputes later on:

• Keep assets separate: avoid mixing inherited funds or pre-marital savings in joint accounts.
• Maintain clear records: keep evidence of when you received an inheritance, financial gift or purchased property.
• Review family wealth structures: think carefully about family businesses or additional properties, especially where other family members have an interest.
• Update arrangements after major life events: second marriages, previous relationships or a substantial inheritance can all affect your asset protection strategy.

These measures can support asset protection, but they are not a guarantee. If financial needs require it, the family court can still take such assets into account.

How Switalskis can help

Protecting assets in the context of marriage, civil partnership or divorce requires careful planning and compliance with strict legal requirements. Independent legal advice and full financial disclosure are essential if nuptial agreements or other asset protection strategies are to carry weight in the family court. By seeking proper legal advice, you can avoid arrangements that risk being set aside and make sure your approach reflects both your needs and the law.

At Switalskis, our experienced family law solicitors advise clients on prenuptial and postnuptial agreements, asset protection strategies and contested financial settlements. We can help you:

• Ringfence assets acquired before marriage.
• Protect family wealth and intended beneficiaries.
• Assess the strength of trusts, property arrangements and other strategies.
• Avoid agreements that could be overturned for unfairness.
• Structure family companies so that they are not in danger of being broken up or divided during a separation.

If you are concerned about protecting your assets, or want to discuss alternatives to a prenuptial agreement, contact Switalskis today. Call us on 0800 138 0458 or get in touch through our website and one of our family law solicitors will respond at a time that suits you.