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Inheritance in a UK Divorce

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Published on 16 January 2025 by Amar Ali - Director and Solicitor
Inheritance in a UK Divorce

In England and Wales, there is no automatic legal requirement to share inheritance with your spouse while you are still married. Similarly, your spouse is not automatically entitled to an inheritance you have received if you get divorced. However, the court may still order to split your inheritance in a divorce under certain circumstances.

Whether your inheritance must be shared in a divorce depends on factors such as the timing of the inheritance and whether it is needed to meet the other spouse’s financial needs. Generally, inheritance received before marriage is considered a non-matrimonial asset and may not be divided in the event of divorce. However, if inheritance is received during the marriage and used for joint purposes (e.g. to buy the family home), it is more likely that it will need to be included in the settlement. All of that said, in some divorce settlement cases, if the proceeds of inheritance are needed to meet the basic financial needs of the other spouse or children, it may be divided between both parties, even though it is classed as a non-matrimonial asset.

It is important to note that you have a legal obligation to inform both your ex-spouse and the court if you receive a large inheritance during the divorce process (i.e. after the application for divorce but before it is finalised). This is because full financial disclosure is a legal requirement during divorce proceedings in the UK to ensure a fair and transparent division of assets.

Once your divorce financial settlement has been agreed upon and approved by the court in the form of a Consent Order, you generally don’t need to disclose any inheritance that you later receive, as the financial settlement is considered resolved. However, if the settlement includes ongoing financial payments to the other spouse (i.e. spousal maintenance), any inheritance received may change the terms of those payments.

To better understand the implications of inheritance during the divorce process and to protect your interests, we encourage you to contact our experienced divorce lawyers. Our team will thoroughly assess your circumstances and provide tailored advice to help you achieve a fair settlement that meets your current and future needs, as well as those of your children.

How courts decide whether to share your inheritance with your spouse

The family courts in England and Wales can use their discretion to decide whether and how to share an inheritance with a spouse in the event of divorce by considering a number of factors, including:

  • The timing of the inheritance
  • Whether there is a nuptial agreement, Will or other legal document stating how the inheritance should be treated in the event of divorce
  • Whether the proceeds of the inheritance were used to purchase matrimonial assets or otherwise used during the marriage (e.g. to purchase or renovate the family home) – also called ‘co-mingling’, and
  • Whether the needs of one spouse or any children from the marriage cannot be met without the inheritance

The timing of the inheritance

Inheritance received before marriage is more likely to be seen as a non-marital asset and, therefore, not included in any division of assets. Likewise, an inheritance received after a divorce financial settlement is more likely not to be viewed as a matrimonial asset.

Will and nuptial agreements

If the intentions of the party with the inheritance are clearly set out in a legal document such as a Will or ‘prenup’ regarding how they want the proceeds to be treated, the judge may take these into account when deciding on a divorce financial settlement.

Inheritance used to purchase matrimonial assets

If an inheritance is used to purchase matrimonial assets such as a family home or is otherwise used by the family during the marriage, it is considered to be ‘co-mingled’ and, therefore, more likely to be viewed as a marital asset. This is why it is important for those with an inheritance to keep it completely separate from any marital assets if they intend for it to be kept for their sole use.

Inheritance needed to meet the financial needs of spouse or children

If the needs of one spouse or any children from the marriage cannot be met without the inheritance, the court may decide that it should be divided. For example, if when the total value of the marital assets does not allow divorcing parties to secure their own property, the judge may order that any inheritance be used to ensure this can be achieved.

Can I protect my inheritance from my spouse in the UK?

You may be able to protect or ring-fence your inheritance from your spouse in the in a number of ways, including:

  • Placing the inheritance into a trust
  • Entering into a prenup
  • Keeping the inherited asset/s separate from marital assets, and
  • Seek legal advice

Placing the inheritance into a trust

Placing an inheritance into a trust as early as possible with the clear intention of protecting family wealth may help to keep it protected in the event of divorce. It is important to remember that the courts have wide-ranging discretion, which includes decisions regarding trusts. The courts will look at the type of trust when it was formed, and why. For more details, see our article on using trusts to protect assets in divorce.

Entering into a prenup

Prenups can be used to provide guidance to judges deciding on divorce financial settlements and, in particular, how inheritances should be handled. However, documents such as prenups are not legally binding, and the courts have the ultimate discretion to make a decision to achieve the fair division of assets.  

Keeping the inherited asset/s separate from marital assets

Inheritances received before the marriage and kept completely separate from the marriage are less likely to be divided in the event of divorce. Again, this is not always necessarily the case, as the courts will use their discretion and make a decision based on the financial needs of the parties involved.

Seek legal advice

A family law solicitor can recommend the best ways to ring-fence your inheritance. There are various ways that this can be achieved, including through nuptial agreements, Wills and trusts such as a life interest trust or intergenerational trust. 

Future inheritance after divorce in the UK

Inheritances acquired after separation but before your divorce is finalised may become part of your divorce settlement, depending on the needs of you and your ex-partner.

An ex-wife or ex-husband is unlikely to have any claim against inheritances received by their ex-partner after a divorce settlement has been reached, especially if a clean break was achieved. A clean break means that both parties have no ongoing legal obligation towards one another.

If one party pays the other ongoing spousal maintenance and receives an inheritance after the settlement, they may be able to make a claim or seek a one-off lump sum payment from the inheritance as a way of achieving a ‘clean break. Likewise, if a party receiving spousal maintenance to meet their financial needs receives a large inheritance, the paying ex-spouse can ask the courts to change the arrangement.

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