While divorce is an emotionally challenging process for all involved, a logical approach is often required when it comes to asset division and financial settlements.
An area that raises many questions is inheritance and your right to keep it, but the answers will depend on individual circumstances. That is why it is so important to get tailored divorce advice to ensure you safeguard certain assets where possible and achieve fair outcomes for all parties.
Do you want to know more about inheritance and divorce? Here is an introductory guide to how it works.
What happens to inheritance money during a divorce?
When spouses divorce, all assets must be considered. What happens to inheritance money during a divorce will come down to whether it is deemed marital or non-marital property. Until this is established, there is no automatic division of assets. If the courts are making the decision, they will look at the needs of both parties and any children, as well as the length of the marriage.
Settlements can differ based on how the inheritance was treated within the marriage. If inherited money is used for something like buying a family home, or it is deposited into a joint bank account, it may be considered a marital asset that needs dividing.
Is your spouse entitled to future inheritance after divorce?
Future inheritances not yet received are generally not considered during divorce, especially if a couple is aiming for a clean break. However, if there is a strong likelihood of significant future inheritance and the spouse is aware of it, it could affect what they demand during the divorce settlement.
While future inheritances are not typically included in immediate settlements, any financial obligations agreed upon in the divorce, such as spousal support or child maintenance, can be influenced by the anticipation of a future inheritance.
How can you protect inheritance money from divorce?
If you would like to help protect your inheritance from being included in any future divorce settlements, you could consider a prenuptial or postnuptial agreement. While not legally binding in the UK, you can specify how inheritance will be treated in the event of divorce. This makes it more likely for a court to uphold the agreement if it is fair to all parties and independent legal advice was sought on both sides.
Another thing you can do is put your inheritance in a separate bank account when you receive it and avoid mixing it with marital assets. This shows it was intended to be kept separate from any marital finances. Setting up a trust for the inheritance can also provide a level of protection.
However, please note that hiding assets during a divorce is never advised and can lead to significant penalties.
Get specialist divorce and inheritance advice – experienced family lawyer
Bellwether Solicitors are specialists in all aspects of divorce and family law, supporting clients in Ewell, Hampton and surrounding areas. To request a consultation with an expert divorce lawyer, contact us today.
