The short answer is that inheritance is not always shared on divorce, but it is not automatically protected either.
In England and Wales, the court looks at what is fair in the overall circumstances, including the financial needs of both parties and any children.
Broadly speaking, assets built up during the marriage are more likely to be treated as part of the shared pot.
Inheritance is often looked at differently and may be treated as separate, especially if it was received before the marriage, after separation, or kept apart from day-to-day family finances.
That said, there is no automatic rule, and the court can still take inherited assets into account if fairness requires it.
Even if an inheritance starts off as separate, it can still become part of the picture on divorce.
A common reason is simple financial need. If there is not enough in the shared assets to rehouse both parties or meet reasonable living costs, the court may look at inherited money as well.
It can also become harder to argue that an inheritance should stay separate if it has been mixed in with joint finances, for example by paying it into a joint account, using it for the family home, or spending it on shared expenses.
A well-prepared pre-nuptial or post-nuptial agreement can be one of the best ways to strengthen the protection around an inheritance.
These agreements are not automatically binding in England and Wales, but the court will often give them real weight if they have been entered into properly. That usually means both people have taken legal advice, exchanged full financial information, and understood what they were signing.
They can be particularly useful where someone wants to protect family wealth or preserve an inheritance for children from an earlier relationship.
Another point to consider is how parents can protect money that they may have provided to assist with for example purchasing a property. Often money is provided although not protected. Then if divorce proceedings commence one party will often argue that the money was a gift, the other arguing it was a loan. The result can be that as part of any court proceedings parents need to be involved as what are called Interveners, and legal costs increase for everyone.
If there was a declaration of trust prepared from the outset this can record what will happen in the event of children subsequently getting divorced. It protects that money so that parents can be reimbursed what they contributed.
In most cases, protecting an inheritance comes down to three things: keeping it separate, keeping good records, and planning ahead. The earlier you take advice, the easier it usually is to put sensible protection in place. Every case is different, though, and much will depend on the overall finances and what the court considers fair.
This article is intended as general information only and does not constitute legal advice. Specific advice should always be taken on the facts of an individual case.
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