Will I be able to keep my inheritance if I get divorced?

Often, one of the main concerns for separating couples is how their assets will be divided and what their financial position will be once their divorce is finalised.

When the court looks at a couple’s financial situation, all assets of their marriage can potentially be taken into account. This would include any money or assets inherited by either spouse.

How the court deals with inheritance when dividing assets depends on the couple’s individual circumstances.

The court will take into account factors such as the value of the inheritance, how it was spent, the value of other assets, the length of the marriage, how long ago the inheritance was received and, most importantly, the financial needs of the parties and whether these can be adequately met without taking the inheritance into account.

Inheritances already received

If the inheritance has been received before the divorce is finalised, the most important factor is the needs of the parties, particularly the needs of any children.

If the parties’ reasonable needs cannot be met without sharing the inherited assets, then it is likely that the court will share these assets between the parties. However, if both parties’ reasonable needs can be met without using the inherited assets then there would be a strong argument for these to remain separate from the matrimonial assets, and not divided between the couple.

The court will also consider how inherited assets or money has been dealt with by the couple. For example, if the asset was transferred into joint names or was used for joint purposes, such as buying the family home, then it is more likely that this would be shared between the couple as a matrimonial asset.

The time elapsed since receiving the inheritance is also important. If the inheritance was received shortly before separation – or after separation – then it is more likely that it would be retained by the spouse who received it.

Future inheritance

Usually, any possible future inheritance is not taken into account on divorce. This is because the person is not yet in receipt of the inheritance and their relative’s will could be changed before their death. The court is usually very reluctant to speculate about potential future inheritance.

How the court deals with inheritance on divorce is a complex issue and the outcome varies depending on the couple’s unique circumstances. Therefore, if you have any concerns regarding inheritance and divorce, it is important that you take specialist advice.

For more information on how inheritance is dealt with on divorce, or for advice on any family law matter, contact Janine Hutson on 01772 258321. Harrison Drury has a team of family solicitors based in Preston, Lancaster, Kendal, Garstang and Clitheroe.