24 March 2025

Mental Health and Financial Settlements in Family Law: TA v SB [2025] EWFC 61

The recent judgment in TA v SB [2025] EWFC 61 (B) offers a compelling look at how family courts balance financial settlements in cases where one spouse has significant mental health challenges. The case reinforces the principle that fairness does not always mean equality, particularly when a party's vulnerabilities affect their financial needs and earning capacity.

Case Overview: TA v SB

The central issue in TA v SB was the division of the former matrimonial home (FMH) following divorce. The wife (W), who has bipolar disorder, was awarded 57% of the FMH. The husband (H) contended for a more equal division, arguing that his contributions and needs justified a more balanced outcome.

The court ultimately found that W’s mental health condition necessitated a greater share of the asset to ensure her long-term stability. The judgment highlighted that fairness required an assessment of needs, not just a mechanical application of equal division.

The Role of Mental Health in Financial Remedies

This case underscores the court's approach to mental health in financial remedy proceedings. While White v White [2001] 1 AC 596 set the principle of non-discrimination between homemakers and breadwinners, TA v SB demonstrates that where health significantly impacts future earning potential, the court will adjust financial awards accordingly.

The Needs-Based Approach in Financial Remedy Cases

A needs-based approach is a key principle in financial remedy cases, ensuring that a financially weaker spouse, especially one with health vulnerabilities, receives sufficient provision for their future well-being. Courts will depart from an equal division where necessary to ensure financial stability, particularly when the applicant has mental health conditions or long-term medical needs.

Legal Framework for the Needs-Based Approach

While equality is often the starting point in financial settlements (White v White [2001]), courts can adjust division based on reasonable financial needs, as established in:

For applicants with health vulnerabilities, needs assessments take on additional significance.

What Courts Consider When Applying the Needs-Based Approach

In cases like TA v SB, where one party has mental health challenges, the court looks at:

  • Housing Needs – If the applicant requires stable accommodation, the court may award a larger share of the FMH or additional capital to secure appropriate housing.
  • Medical and Care Costs – Long-term medical treatment, therapy, and support services are factored into financial provision.
  • Earning Capacity & Employment Prospects – If the applicant’s condition limits future earnings, the court may award higher capital or spousal maintenance (Periodical Payments).
  • Overall Standard of Living – Courts aim to prevent undue financial hardship, ensuring a reasonable quality of life post-divorce.

How an Applicant Can Strengthen Their Needs-Based Claim

To maximise financial provision under the needs-based approach, an applicant should:

  • Provide expert medical evidence proving the impact of their condition on their ability to work and manage daily life.
  • Demonstrate specific financial needs, including medical care, therapy, and housing stability.
  • Highlight dependency on the financially stronger spouse, if applicable, and justify why equal division would be insufficient.
  • Argue for spousal maintenance, particularly if they are unable to work or their income is significantly reduced.

Comparison with V v V [2024] EWFC 380

The judgment in TA v SB makes reference to V v V [2024] EWFC 380, a case that, while noted as ‘non-recitable’ as precedent, shares striking similarities. In V v V, one spouse also suffered from a mental health condition that affected their financial independence. The court in that case recognised that maintaining a degree of financial security was essential for the vulnerable party’s well-being, leading to an outcome that favoured need over strict equality.

Both cases illustrate a broader trend in family law, where the court takes a holistic approach, prioritising the needs of the more vulnerable party. While V v V is not binding, it aligns with the principle that fairness in financial remedy cases is highly fact-sensitive.

Judicial Trends and Practical Implications for Family Lawyers

Courts have become more receptive to non-equal divisions where necessary, particularly in cases involving mental health or serious illness. Practitioners should:

  • Emphasise long-term financial security rather than short-term asset division.
  • Consider lump sum settlements where ongoing maintenance may be impractical or contested.
  • Cite recent case law, including TA v SB, to justify a departure from equality based on individual circumstances.

Key Considerations for Family Law Practitioners

  1. Needs trump Equality: Mental health considerations can tilt the balance in financial settlements, leading to outcomes that prioritise stability over a strict 50/50 split.
  2. Judicial discretion matters: The court’s approach remains flexible, emphasising fairness over rigid formulae.
  3. Precedents may be limited: While V v V was cited in TA v SB, its ‘non-recitable’ status means it cannot be relied upon as binding authority. However, it reinforces a trend in the court’s reasoning.
  4. Medical evidence is critical: Demonstrating the long-term financial impact of a mental health condition strengthens a needs-based claim.
  5. Spousal Maintenance may be justified: If earning capacity is compromised, a higher capital award or maintenance provision should be sought.

Conclusion

The judgment in TA v SB serves as an important reminder that financial remedy cases are not solely about division of assets but about ensuring just outcomes tailored to the parties’ realities. Where mental health factors into financial needs, the court remains willing to adjust settlements accordingly, demonstrating a nuanced and empathetic approach to family law disputes.

23 October 2024

Standish v Standish [2024] EWCA Civ 567: Matrimonial and Non-Matrimonial Assets in Financial Remedy Cases

The Court of Appeal’s decision in Standish v Standish [2024] EWCA Civ 567 provides pivotal guidance on how matrimonial and non-matrimonial assets are treated in divorce proceedings. While the case involved substantial wealth, the principles established in this ruling apply to financial remedy cases of all sizes, particularly in terms of how non-matrimonial property is considered, when it becomes matrimonialised, and how the needs of the parties influence the outcome.

Background of the Case

In Standish v Standish, the couple had amassed significant wealth during their marriage, including £80 million transferred into the wife's name in 2017 as part of a tax planning exercise. The key legal issue was whether this transfer of assets, originating from the husband’s pre-marital wealth, constituted matrimonial property subject to division under the sharing principle or whether it remained non-matrimonial.

The wife contended that the couple’s lifestyle and the use of the wealth during their marriage had matrimonialised the assets. The husband argued that his pre-marital assets should remain separate, despite the transfer to the wife’s name for tax planning purposes.

Key Legal Issues in the Case

  1. Matrimonialisation of Non-Matrimonial Property: The key focus was whether the husband’s pre-marital assets had become matrimonial through the couple’s use and treatment of them during the marriage. The court reviewed the extent to which assets that were non-matrimonial at the outset could, through actions during the marriage, become subject to the sharing principle. Moylan LJ reiterated that the concept of matrimonialisation must be applied "narrowly."
  2. The Sharing Principle: The wife argued that the sharing principle should apply to the 2017 transfer of assets because it was made in the context of their marriage. However, the court held that merely transferring assets to the wife’s name did not change their underlying non-matrimonial nature. The court emphasised that legal title is not determinative; the source of the wealth remains the critical factor in deciding whether an asset is subject to division.
  3. Impact on Division of Wealth: The court ultimately found that 75% of the couple’s wealth remained non-matrimonial, meaning the wife would receive a significantly reduced share from her initial £45 million award, reduced to £25 million. This decision reflects the court’s approach that even if non-matrimonial assets are used during the marriage, they are not automatically subject to equal division unless fairness demands it.

Key Takeaways from the Judgment

  1. Narrow Application of Matrimonialisation: The court made clear that matrimonialisation should be confined to specific circumstances. Only when non-matrimonial assets have been "mixed" with matrimonial property or used in a way that demonstrates an intention to treat them as shared marital assets, can they become subject to the sharing principle. This approach ensures that pre-marital assets are protected unless they are extensively integrated into the marital pot.
  2. Source Over Title: Moylan LJ emphasised that the source of wealth, rather than who holds the legal title, is critical in determining whether assets are matrimonial or non-matrimonial. This has a significant impact on how pre-marital assets are treated, particularly in cases where one party contributes significantly more financially to the marriage than the other.
  3. Fairness Over Equality: The court reiterated that fairness is the paramount consideration, and this does not always equate to equal division. Even where assets have become matrimonial, the court may still adjust the division based on the source of the wealth and the contributions of each party.
  4. Needs-Based Approach in Lower-Value Cases: Although Standish involved significant wealth, the principles established in the case apply equally to "small money" cases. In cases where the matrimonial assets are insufficient to meet the needs of both parties, the court may include non-matrimonial property in the division to ensure that housing and income needs are met. This reinforces the court’s flexibility in ensuring fairness, even if it means using non-matrimonial assets to satisfy needs.

Implications for Family Law Practitioners

  1. Matrimonialisation in Practice: Practitioners must carefully assess the extent to which non-matrimonial assets have been integrated into the marriage. This case provides valuable guidance on how to argue for or against matrimonialisation based on the treatment of assets during the marriage. Lawyers must advise clients on the risks of transferring or mixing non-matrimonial assets, especially in the context of tax planning or other financial arrangements.
  2. Needs in "Small Money" Cases: For lower-value cases, the Standish ruling has important implications. In cases where the total assets are modest, practitioners should expect that non-matrimonial property may be considered to meet housing and income needs, even if fairness does not demand an equal division. The focus will be on ensuring that both parties can maintain a reasonable standard of living post-divorce.
  3. Early Advice on Pre-Marital Wealth: Clients with significant pre-marital assets should be advised early on about the potential matrimonialisation of those assets, particularly if they are used jointly during the marriage. Clear legal advice on keeping non-matrimonial property separate and how to manage assets through prenuptial agreements or other means is crucial.

Conclusion

Standish v Standish reaffirms the importance of distinguishing between matrimonial and non-matrimonial property in financial remedy cases. The Court of Appeal’s decision provides clarity on the narrow circumstances in which non-matrimonial property may be subject to division and underscores the court’s commitment to fairness rather than automatic equality. For family law practitioners, this case serves as a crucial reminder of the importance of careful financial planning and transparent legal strategies, whether in high-net-worth or "small money" cases.

This ruling is likely to shape financial remedy proceedings for years to come, particularly in cases involving significant pre-marital wealth. By reinforcing the importance of the source of wealth and limiting the circumstances under which matrimonialisation applies, the court has provided a clear framework for both protecting pre-marital assets and ensuring fairness in the division of wealth.

york-skyline-color
york-skyline-color
york-skyline-color

Get in touch for your free consultation

James-Thornton-Family-Law_white

Where innovation meets excellence

Our mission is clear: to redefine the standards of legal representation by seamlessly integrating unparalleled expertise with cutting-edge innovation.

01904 373 111
info@jamesthorntonfamilylaw.co.uk

York Office

Popeshead Court Offices, Peter Lane, York, YO1 8SU

Appointment only

James Thornton Family Law Limited (trading as James Thornton Family Law) is a Company, registered in England and Wales, with Company Number 15610140. Our Registered Office is Popeshead Court Offices, Peter Lane, York, YO1 8SU. Director: James Thornton. We are authorised and regulated by the Solicitors Regulation Authority, SRA number 8007901, and subject to the SRA Standards and Regulations which can be accessed at www.sra.org.uk

Privacy Notice  |  Complaints  |  Terms of Business

Facebook
X (Twitter)
Instagram

©2024 James Thornton Family Law Limited