Ring Fencing Assets on Divorce in the UK
What the Courts Really Consider:
Ring fencing assets on divorce is not automatic. Learn here how UK courts assess non-marital assets and what fairness really means in a financial settlement.
When couples divorce one of the most common financial questions is whether certain assets can be excluded from the settlement. This is often described as “ring fencing” assets. While the term is widely used it is not a formal legal rule and does not guarantee protection.
In England and Wales the court’s focus is always fairness.
What Does Ring Fencing Mean in Divorce?
Ring fencing refers to arguments that particular assets should be treated as non-marital and therefore excluded or given less weight in a financial settlement. These assets typically include:
Property or savings owned before the marriage
Inheritances received by one party
Gifts from family members
Certain business interests
Whether an asset can realistically be ring fenced depends on how it has been used during the marriage and whether excluding it would still produce a fair outcome.
The Legal Test: Fairness Not Ownership
Under section 25 of the Matrimonial Causes Act 1973 the court must consider all the circumstances of the case. There is no automatic distinction between marital and non-marital assets.
Key factors include:
Each party’s financial needs and resources
The length of the marriage
The standard of living during the marriage
Financial and non-financial contributions
Any dependent children
Even assets that clearly originated outside the marriage can be shared if required to meet needs.
When Ring Fencing May Carry Weight
Ring fencing arguments tend to be stronger where:
The marriage was short
The asset was acquired before the marriage or inherited
The asset has been kept separate
Both parties’ needs can be met without using it
In longer marriages or where assets have been mixed the court is far less likely to exclude them.
Why Ring Fencing Often Fails
Many people assume that inheritance or pre-marital wealth is automatically protected. In reality the court will prioritise fairness over source.
If an asset has been used to support the family lifestyle or fund joint decisions it may lose its non-marital character. Non-financial contributions such as childcare and career sacrifice are given equal weight.
Attempts to isolate assets late in the marriage are also closely scrutinised.
Prenuptial Agreements and Ring Fencing
Prenuptial and postnuptial agreements can significantly strengthen ring fencing arguments. While not strictly binding courts will usually uphold them if they are fair properly drafted and entered into with full disclosure and legal advice.
Ring fencing assets on divorce is never automatic. The court will look beyond labels and ownership to determine what outcome is fair in the circumstances. Understanding how judges actually approach non-marital assets can help parties negotiate realistically and avoid costly disputes.