Inheritance can be a deeply personal and often contentious issue in divorce proceedings. Many people assume that inherited assets are automatically protected from division, but the reality is more nuanced. In England and Wales, the courts assess inheritance on a case-by-case basis, considering factors such as timing, financial needs, and whether the inheritance has been mingled with marital assets.
Is Inheritance Automatically Protected in Divorce?
Not always. While inheritance is generally considered a non-matrimonial asset, it can be included in a financial settlement if needed to meet the other spouse’s financial requirements.
Key Factors Courts Consider
- Timing of the Inheritance
Inheritance received before the marriage is more likely to be protected. If received during the marriage, especially if used for joint expenses or property, it may be treated as a shared asset. - How the Inheritance Was Used
If the funds were kept separate—for example, in a personal account or trust—they are easier to ring-fence. If used for family expenses or to purchase a matrimonial home, they may be considered part of the marital pot. - Financial Needs of Both Parties
If one spouse cannot meet their financial needs without accessing the inheritance, the court may include it in the settlement to achieve fairness.
Expert Insight
Amanda Voakes, Partner and Private Client Solicitor, comments:
“Estate planning isn’t just about creating a Will, it’s about safeguarding family wealth through life’s changes. As circumstances evolve, marriage, divorce, births, or financial shifts, it’s crucial to review and adjust estate plans to ensure assets are distributed as intended, tax-efficiently, and without unnecessary disputes. A well-structured plan provides stability for future generations and prevents costly legal battles.”
A Family Solicitor’s Perspective
Emma Davies, Family Law Solicitor, adds:
“We often see clients surprised to learn that inheritance isn’t automatically off-limits in divorce. The best protection is proactive planning, whether through trusts in estate planning when considering preserving family wealth for future generations, nuptial agreements, or simply keeping inherited assets separate. These steps can make all the difference in preserving a family legacy.
The importance of nuptial agreements and ensuring that you have holistic professional advice in estate planning and on the receipt of inheritance should not be ignored as this could be the difference between the court finding that assets are matrimonial and should be shared or non-matrimonial which would see them ringfenced or only invaded to meet the parties needs if required.”
How to Protect Your Inheritance
- Use a Trust
A discretionary trust can help control how assets are distributed and protect them from future claims. However, it is important to know that the court will take trusts into account on divorce. The way they are treated by the court will depend on when they were created and how they have been managed during the course of the marriage. - Keep Inheritance Separate
Avoid mixing inherited funds with joint accounts or using them for shared purchases. - Consider a Prenuptial or Postnuptial Agreement
These agreements can clarify how inherited assets will be treated in the event of divorce. - Seek Legal Advice Early
A solicitor can help structure your inheritance and estate plan to minimise risk and maximise protection. It is also important to seek legal advice early when considering pre-nuptial agreements.
Final Thoughts
Inheritance is not automatically protected in divorce, but with the right planning, it can be. Our team works collaboratively across family and private client law to help clients protect, preserve, and pass on wealth securely. From estate planning and inheritance structuring to safeguarding assets during divorce, we’re here to support you through life’s legal complexities.
Contact Us
Amanda Voakes is a Partner in our expert Wills and Probate team, advising on Inheritance Tax planning, Wills, administration of estates, grants of Probate, grants of Letters of Administration, Powers of Attorney, administration of affairs, and residential care fee planning/protection of assets.
Emma Davies is a Partner in our Family Law team, which is ranked in Tier One in the independently researched publication, The Legal 500. She specialises in divorce and financial settlements, which involve complex issues and substantial assets. She also advises on pre- and post-nuptial agreements, cohabitation agreements and separation agreements, along with private law Children Act disputes. Emma is a qualified collaborative law and Resolution Together practitioner.
To discuss how we can help you, please contact Amanda, Emma or another member of the team on 0808 258 0461 or via our online enquiry form.
Contact us