When deciding how assets should be split upon divorce, the first step is usually to consider what forms the ‘matrimonial pot’ such as the family home and joint bank accounts. It can be easy to assume that inherited money or property will not be included in the pot but that is not always the case.
The focal issue is whether any inherited assets were ‘mingled’ into the marriage or used for the benefit of the family. Using an inheritance of £50,000 to pay off the mortgage on the family home is perhaps a good example of ‘mingling’ funds.
When dealing with any inherited assets within a divorce it is imperative to seek advice from a family law specialist as the issues can become quite complex.
I inherited money before I was married, surely I get to keep it?
As above, it may depend on how you used the money. If it has remained separate in a sole bank account, you may have an argument to ring-fence that money. The argument would likely be strengthened even further if you were only married for a short time.
I received an inheritance after separating, will it be included within my divorce?
Generally speaking, the court tend to deem inheritance received post-separation as non-marital. However, if there are limited assets available to effect a fair settlement, it could be suggested that you use any inheritance to support yourself. For example, if you were not able to rehouse using marital funds alone, the court could suggest you use your inheritance too.
My ex-partner received a substantial inheritance during our marriage, am I at a disadvantage?
The court will consider your needs and those of your ex-partner, as well as any children, when determining a fair financial settlement. They could be persuaded to give you a larger portion of the marital assets if your ex-partner has a large inheritance to rely upon. These issues can be very case-specific so it will depend on how the monies were used and when they were received.
My ex-partner’s parents are very wealthy, will I get more of the martial assets given he will be due a large inheritance when they pass?
The court generally consider the marital assets before them at that time and whilst your future needs are relevant, a future inheritance cannot be guaranteed. If a family member is unwell then a court may be more likely to consider any prospective inheritance but for family who are fit and well, the court can’t put a timescale on their passing.
It is important to note that Wills can be changed which can mean no inheritance is guaranteed. There is also no telling what a family member may do with any assets during their lifetime. A couple who are wealthy now may not be wealthy when they pass away. It is for this reason that a court are unlikely to award you more of the marital pot simply because your ex-partner has wealthy parents.
If I receive an inheritance after my divorce is finalised, will my ex-partner get a share?
If you have a financial order in place then generally speaking, the answer is no. A financial order should sever any ties between you and your ex-partner, preventing them from making any claims against your assets in future and vice versa.
Of course, if your ex-partner is a beneficiary of a Will they may receive their own specified share of any inheritance.
What can I do to protect my inheritance?
Being open and honest with your partner may be a good way to set clear boundaries about how any inheritance will be used. You might choose to enter into a pre or post-nuptial agreement setting out what will happen to the inheritance in the event of a divorce.
The court can be reluctant to deem inheritance a matrimonial asset if it has been kept separate throughout a marriage but be mindful that a court do have a wealth of powers available to them.
Our solicitors at E J Coombs are family law specialists and well-versed in dealing with maintenance claims. If you have questions, why not arrange to speak with one of our team today?
