Time For Defined Categories Of Wealth?

In 2013 the Law Commission is due to report and (hopefully) make recommendations on the approach of the English Court on the division of non-matrimonial assets on divorce. At present there is no guidance in the relevant statutes so couples often find themselves embroiled in costly litigation over the issue of how to divide property that was acquired by either party prior to the marriage or received by gift or inheritance during the marriage.

In 2000 the House of Lords in White v White said the existence of non-matrimonial property will have little weight where the parties' needs cannot be met without recourse to such assets. However, after the question of need has been satisfied, the category of the asset will be relevant to the question of how the sharing principle is applied.

Two schools of thought have evolved through case law since White. The first applies a broad discretion and adjusts away from equality to take into account non-matrimonial property. For example, in AR v AR [2011] EWHC 2717...