When a couple decides to divorce, all their assets, including properties, savings, and investments, are typically considered for division. Inheritance, however, occupies a unique space in these proceedings.
In this article, we'll look at how inheritance is treated in UK divorce law.
Table of Contents
- How is inheritance treated in UK divorce law?
- Can my spouse claim my inheritance during a divorce?
- What happens to inherited property in a divorce?
- Is future inheritance considered in divorce settlements?
- Does inheritance always get split in a divorce?
- What happens if I receive an inheritance after my divorce?
- How can I protect my inheritance in a divorce?
- Get expert help with divorce settlements
How is inheritance treated in UK divorce law?
In most cases, inheritance is considered non-matrimonial property, which means it is not automatically included in the pool of assets to be divided between spouses during a divorce.
This is particularly true if the inheritance has been kept separate from marital finances and not used for joint expenses or investments.
However, if the inherited assets have been mixed with marital assets, such as being deposited into a joint account or used to purchase a family home, they may be considered as part of the marital pot. This makes them more likely to be considered in the division of assets.
The duration of the marriage and when the inheritance was received can also be key factors.
For example, inheritances received towards the end of a long marriage are more likely to be considered part of the marital assets than those received before the marriage began.
Can my spouse claim my inheritance during a divorce?
Your spouse can potentially claim your inheritance during a divorce if:
Your inheritance has been used for joint purposes;
There are not enough marital assets to go around, especially if there are children involved;
The court believes it is necessary to achieve fairness.
What happens to inherited property in a divorce?
Inherited property can be considered a non-marital asset. However, if the inherited property has been used for the benefit of both spouses, it may be considered a marital asset.
The court's primary focus is to make sure that both parties' financial needs are met.
Is future inheritance considered in divorce settlements?
Courts are typically reluctant to consider future inheritance when dividing assets during a divorce. Instead, they usually focus on the assets and financial resources that are currently available to both parties.
In rare cases, if the expected inheritance is significant and its receipt is imminent and assured, the court may consider it. However, courts generally do not make financial decisions based on assets that aren't yet in possession.
Does inheritance always get split in a divorce?
Inheritance doesn't always get split in a divorce. Instead, it depends on several factors such as if the inherited assets have been mixed with marital assets and the financial needs of both spouses.
Courts however do have the discretion to include inheritance in the division of assets to achieve a fair settlement, especially in long marriages or where one party has significantly greater financial needs.
What happens if I receive an inheritance after my divorce?
If a consent order was issued during your divorce, it typically includes provisions to dismiss future claims by either party. This order provides financial closure and prevents your former spouse from making claims on any inheritance you receive post-divorce.
How can I protect my inheritance in a divorce?
Pre-nuptial agreements
A pre-nuptial agreement is a legal document signed before marriage, outlining how assets, including inheritances, will be divided in case of a divorce.
Post-nuptial agreements
Similar to a prenup, but signed after marriage, a post-nuptial agreement can be used to protect an inheritance received during the marriage, ensuring it remains your separate property.
Trust declarations
Trust declarations are a legal arrangement where your inheritance is placed into a trust.
This can help ringfence your inheritance, making it harder to be considered part of marital assets during a divorce.
Keep separate accounts
Don't deposit inherited money into joint accounts or use it for joint expenses. This ensures that the inheritance remains identifiable as separate property.
Don't use it for marital purchases
Don't use inherited funds to buy or renovate a family home that is jointly owned.
Using the inheritance in this way could make it part of the marital assets subject to division.
Get expert help with divorce settlements
The specifics of how inheritance is treated in divorce can depend on factors such as whether it has been mingled with marital assets, the length of the marriage, and the financial agreements of both spouses. Courts aim to achieve a fair settlement, and in some cases, inheritance may be included in the division to meet these needs.
For personalised legal advice tailored to your situation, consulting with a divorce lawyer is highly recommended.
At Lawhive, we are dedicated to providing affordable, accessible legal guidance to help protect your inheritance and ensure a fair outcome in your divorce proceedings.
Contact us today for a free case evaluation and quote for the services of a specialist lawyer.