Inheritance and Divorce: What Happens to Your Assets?

When going through a divorce, one of the most common - and often misunderstood - questions is what happens to inheritance. Many people assume that anything inherited will automatically be protected, but the reality is more complex.

In England and Wales, inheritance is usually treated as non-matrimonial property. This means it belongs to the individual who received it, rather than forming part of the assets built up during the marriage. However, this doesn’t guarantee that it will be excluded from a financial settlement.

When Can Inheritance Be Included?

The way inheritance is treated often depends on how it has been used during the relationship.

For example, inheritance is more likely to be considered as part of the overall settlement if it has been:

• Used to buy or improve the family home
• Paid into a joint account
• Combined with other shared finances

Once inheritance becomes “mingled” with marital assets, it can be difficult to argue that it should remain separate.

Another key factor is financial need. The court’s priority is to achieve a fair outcome, particularly where children are involved. If the assets built up during the marriage are not enough to meet both parties’ needs - especially housing - then inheritance may be taken into account.

Why is this happening?

The Government has stated that the change is intended to better prioritise child safety and wellbeing. There are concerns that the current assumption may, in some cases, place pressure on courts to maintain parental involvement even where risks exist. The amendment aims to reduce, but not eliminate, contact with abusive parents, ensuring that decisions are made based on evidence rather than an assumption of rights.

Does Timing Matter?

Timing can also influence how inheritance is treated. Inheritance received during the marriage is more likely to be considered during the financial division than inheritance received after separation. On the other hand, future inheritance- such as from a living relative - is usually not included.

How Can You Protect Your Inheritance?

While there are no guarantees, there are steps you can take to strengthen your position:

• Keep inherited funds separate from joint finances
• Avoid using inheritance for shared purchases where possible
• Consider a pre-nuptial or post-nuptial agreement
• Ensure any divorce settlement is formalised with a consent order

These measures can help demonstrate that the inheritance was intended to remain personal.

Every divorce is different, and the treatment of inheritance will always depend on the specific circumstances of the case. What matters most is achieving a fair outcome based on both parties’ needs and resources.

If you’re concerned about how your inheritance may be affected, seeking early legal advice can help you understand your position and plan accordingly.

If you would like tailored advice, our experienced family law team at MBH Solicitors is here to help.

📩 mbh@wigansolicitors.com
📞 01942 206060