Matrimonial property and non-matrimonial property

In this month’s issue of Trusts and Estates , more space than usual is devoted to issues arising out of claims made in divorce proceedings. It will not often happen that trustees will be directly involved, in their capacity as trustees (unless perhaps they are trustees of a ‘nuptial settlement’ sought to varied, under s24(1)(c) Matrimonial Causes Act 1973). However, if a beneficiary of a trust fund is involved in divorce proceedings, Family Court Judges are apt to take a close interest in what that beneficiary is, or may (with ‘judicial encouragement’) become entitled to. The question of how far the Family Courts may go in pursuing property not owned by a party to the divorce proceedings has been examined by the Court of Appeal in Petrodel Resources Ltd v Prest [2012] EWCA Civ 1395, (noted on p. 4), in relation to properties held in a company, rather than property held in trust. This case has certainly highlighted a sharp divide between Family and Chancery Divisions, described in forthright terms on both sides. That divide may or may not be bridged, at some time, by the Supreme Court. Something that may also be of interest, to will draftsmen as well as trust practitioners, is the distinction between ‘Matrimonial’ and ‘Non-Matrimonial’ Property, which has been examined by the Law Commission.