Understanding Inheritance and Divorce | Divorce Solicitors

During a divorce, assets and finances are divided to ensure that both parties can move forward independently. It can be an emotional and messy process that is often fraught with tension.

If you own inherited assets or expect to inherit in the future, you may be wondering, “Is my spouse entitled to my inheritance if we get divorced?”

The answer to this question is complicated and depends on factors like when the inheritance was received and whether it has been used for marital purposes. It also depends on the other assets of the marriage and the needs of the parties.

At Hibberts Solicitors, our team of Cheshire divorce lawyers help individuals across Cheshire and Shropshire to achieve fair divorce settlements. To help you make sense of how it all works, we’ve created this straightforward guide answering some of the most common questions about inheritance and divorce.

What does UK law say about inheritance and divorce?

Unfortunately, there is no clear-cut answer to this.

The UK law generally considers inheritances to be non-matrimonial assets, meaning they are not automatically included during the division of matrimonial assets.

However. If, during your marriage, the inheritance money was mingled with your marital assets, it is more likely to be included during the division. It does depend on many factors contained within the Matrimonial Causes Act 1973 and depends on the needs of the parties.

And, even if the inheritance hasn’t been used as a marital asset, the court has the discretion to include inherited assets in the settlement if this is the only way to meet the reasonable needs of the other party, particularly if children are involved.

When deciding whether to include inherited assets in the settlement, many different factors are considered to ensure that the final outcome is fair.

When does an inheritance become marital property?

Whether inherited assets are included in a divorce settlement largely depends on whether they are considered matrimonial or non-matrimonial assets.

Matrimonial assets are assets that have been built up during the marriage, including the shared matrimonial home. They usually include any assets that have been acquired and used jointly during the marriage.

Non-matrimonial assets are those that have been acquired by one party and not mingled with marital assets.

Therefore, if you acquire an inheritance and keep it separate from your joint finances, it is more likely to be considered a non-matrimonial asset.

Is my spouse entitled to my inheritance after separation but before divorce?

Even if you are separated, you are still married in the eyes of the law. Therefore, although any inheritance you receive at this time belongs to you, if it is gained before the divorce, it may still be included in the divorce settlement. However we can advise you and negotiate a financial settlement to try and avoid this being factored into the overall financial Order

Is my ex-spouse entitled to any future inheritance after divorce UK?

When getting a divorce, it’s very important to obtain a Clean Break Financial Order in addition to the Final Order on Divorce. This will protect you against claims on future inheritance and financial claims.

Usually, potential future inheritances are not considered when dividing assets during divorce, as they don’t yet exist and cannot be guaranteed.

In rare cases, it is possible that the court might delay finalising a financial arrangement if a large inheritance is imminent and guaranteed.

Tip for protecting your inheritance from divorce settlement claims

Whether you’re married, separated, or divorced, there are steps you can take to protect your inheritance and safeguard your future finances.

• Keep inheritance separate: Keep inherited money in an account solely in your name and don’t use it for joint expenses.
• Keep a paper trail: Keep bank statements and paperwork to show when inherited assets were received and how they’ve been used.
• Consider a pre-nuptial or post-nuptial agreement: A formal post-nuptial or pre-nuptial agreement can help to ring-fence inherited assets. Speak to our divorce solicitors here at Hibberts for more information.
• Use trusts and estate planning: Protect inherited assets in a trust, separate from your marital assets.
• Seek legal advice: Need personalised advice? Our Crewe divorce solicitors can advise you on the best way to structure your finances to protect inherited assets before or during marriage.

Founded in 1799, Hibberts Solicitors is one of the most established and trusted legal firms throughout Shropshire, Cheshire, and the surrounding areas.

If you need further advice or support, contact our team of divorce solicitors by filling out our online contact form, calling 01270 624 225, or emailing enquiries@hibberts.com