Cohabiting later in life is increasingly common. Many people choose to live with a new partner after divorce, separation, or bereavement, often with established assets, grown-up children, and a desire...
Read more
Inheritance is not automatically divided in a divorce, but it can be considered depending on the circumstances of the case.
Whether inherited assets are shared will depend on factors such as when the inheritance was received, how it was used during the marriage, and the financial needs of both parties.
Many people are unsure how inheritance is treated if they divorce. This can include inherited money, property, or other assets. While inheritance is often viewed as a personal asset, family courts focus on achieving a fair outcome, particularly where housing needs, children, or long marriages are involved.
Understanding the legal framework can help you take steps to protect your inheritance while still complying with family law obligations.
1. Inheritance in Divorce: The Basics
In the UK, all assets can potentially be considered in a divorce settlement, including inheritances. However, the way they are treated depends on several factors:
- Timing: When the inheritance was received can matter. Assets received during the marriage may be treated differently from those received before the marriage.
- Use of the inheritance: If the inherited asset was kept separate and not used for family purposes, it may be easier to protect.
- Contribution to the marriage: Courts will consider whether both parties contributed to the growth or upkeep of inherited assets.
The court’s primary concern is fairness and the welfare of any children, not the source of the asset. Even if the inheritance was received by one spouse, the other spouse may be entitled to a share if it has benefited the family.
2. Factors Courts Consider
Courts generally look at:
- Needs of the parties: Ensuring both spouses can meet reasonable living standards.
- Financial resources: Including earnings, savings, and property.
- Contributions to the marriage: Both financial and non-financial contributions, like childcare and homemaking.
- Length of the marriage: Longer marriages tend to favour a more equal division of assets.
- Purpose of the inheritance: Was it intended to benefit the whole family or just the recipient?
Even a clearly intended personal inheritance may be considered if it has been mixed with family assets, such as being used to buy a family home.
3. How to Protect Your Inheritance in Divorce
While there is no guaranteed way to exclude an inheritance entirely from divorce proceedings, there are practical steps you can take:
- Keep Inheritance Separate
- Avoid transferring inherited assets into joint accounts.
- Do not use the inheritance to pay for family expenses or jointly owned property if you want to preserve it as separate.
- Document Everything
- Keep records showing the inheritance came from a third party and is intended for you personally.
- Maintain clear evidence of how it has been used and whether it has been kept separate.
- Consider a Pre-nuptial or Post-nuptial Agreement
- These agreements can outline that an inheritance is intended to remain separate, protecting it in the event of divorce.
- Post-nuptial agreements are particularly useful for marriages that are already in progress.
- Seek Early Legal Advice
- Family law solicitors can advise on strategies to protect inherited assets while complying with your legal obligations.
- If the inheritance is substantial, financial advice may also be appropriate to structure it effectively.
4. Practical Tips
- Do not mix inherited funds with joint finances if you want to protect them.
- Keep the inheritance in your name alone and avoid using it for family expenses without legal guidance.
- Be realistic about court decisions: Even if you try to keep an inheritance separate, courts can sometimes consider its impact on family finances.
- Plan ahead: Pre- or post-nuptial agreements are the most reliable way to protect inheritance in advance.
Speak to our Divorce Solicitors in Bath, Bristol or Bradford-on-Avon today
Inheritance can have a significant impact on financial settlements on divorce, but with the right advice, it may be possible to protect inherited property, money, and other assets.
Taking early steps to keep inheritances separate and properly documented can make a crucial difference.
Our experienced family law solicitors can advise you on how inheritance may be treated on divorce and help you put measures in place to safeguard your interests, including pre- or post-nuptial agreements where appropriate. Please contact us by phone on 01225 448 955, or via email at info@sharpfamilylaw.com, if you would like advice about protecting inherited assets in divorce.
