If one party to a divorce has received an inheritance during their marriage, they are likely to object to it being shared in a financial settlement. This is always a really sensitive issue when people Divorce especially when the loss was a recent one and still quite emotionally raw.
There is no fixed answer as to whether the court will insist on an inheritance being divided between the parties in a divorce, as the court has complete discretion and each case will be determined by its own facts with a number of factors being taken into account in reaching a decision.
Usually, marital assets are treated as being jointly owned and the court will take all of them into consideration when making a financial order. However, if the other party’s reasonable financial needs can be met without using the inheritance, the court might not insist that it is shared and instead treat the money as a separate asset.
What the court will take into account
The court will aim to ensure that neither party is left unable to manage after a divorce. In considering this, it will look at the available assets and income as well as the size of the inheritance. Where a party would struggle without a share of the inherited money, the court will include it in the marital assets.
In any divorce, the needs of any children of the relationship will always be paramount. If the inherited money is needed to provide for those children, then it will be used for this purpose.
The court will also look at the length of the marriage. If it was a long one, generally considered as around ten years or more, then it is more likely to hold that the inheritance should be included in the matrimonial assets.
With a shorter marriage, the court will be more inclined to try and ensure both parties leave the marriage with what they brought to it, so a spouse would be less likely to receive any of the inheritance.
If the inheritance was received early on in a lengthy marriage, again the court will be more likely to treat the money as shared. If it was only received towards the end of the relationship or after separation, then it could be ring-fenced for the party who received it.
Where an inheritance was treated as a matrimonial asset during the course of the marriage, again, the court will be inclined to agree and order that it be shared. For example, if the money was used towards a shared property, this would be a sharing of the asset, whereas if it was deposited in a bank account in the sole name of the recipient, it could be argued that it was never intended to be treated as a matrimonial asset.
Future inheritance
A future inheritance is not generally taken into consideration during a divorce settlement. This is because it is not a certainty and the amount in question is not calculable.
If you are planning on marrying and you believe that you will be inheriting money at some stage in the future, it is advisable to put a prenuptial agreement in place to protect this.
If you are making a Will and you want to ensure that the money you leave to someone will not be lost in a divorce, you can take steps to prevent this from happening, for example, by leaving the money in a trust.
It is always advisable to seek expert legal advice when dealing with an inheritance to ensure you protect your rights as far as possible.
If you would like to speak to one of our expert family lawyers ring us on 0151 8 32 32 53 or email us at info@174familylaw.co.uk. Alternatively you can arrange an appointment to speak with one of our team here
