When you inherit wealth, it’s natural to want to keep it within your family, especially if your marriage or civil partnership comes to an end. But can you prevent your spouse from claiming a share of your inheritance in a divorce settlement? The answer depends on various factors, including how the inheritance is used, the length of the marriage, and financial needs.
Understanding Matrimonial vs. Non-Matrimonial Property
In general, assets acquired during a marriage—regardless of who purchased them—are considered matrimonial property and typically divided upon divorce. This includes the family home, even if one party owned it before marriage.
Non-matrimonial property, including inheritance, is treated differently. If the marriage is short and the inherited assets remain separate from shared finances, they are more likely to be retained by the original beneficiary. However, if inheritance funds are mixed with joint assets, such as paying off a mortgage or buying property together, they may become matrimonial property, meaning they could be divided.
Future Inheritances: Do They Count?
If a spouse is expected to receive an inheritance in the future, this is generally not factored into divorce proceedings – unless the inheritance is imminent (e.g., a parent has already passed away and probate is in process). Courts tend to focus on existing assets rather than uncertain future wealth.
How to Safeguard Your Inheritance
The best way to protect an inheritance is through proper estate planning and legal agreements:
- Pre-Nuptial or Post-Nuptial Agreements – A legally binding document that sets out how assets, including inheritance, will be treated in the event of a divorce. These agreements can help ensure that inherited wealth remains with the intended beneficiary.
- Trusts – Rather than passing assets directly to children, placing them in a Trust allows for greater protection. This means that even if a child divorces, the inherited assets remain within the Trust and outside of their personal estate.
- Keeping Finances Separate – If you inherit wealth and wish to protect it, avoid using it for joint expenses or shared property. Keeping inherited assets separate from matrimonial finances makes it easier to prove that they should not be divided upon divorce.
Inheritance planning is about preserving your family’s wealth for future generations. If you’d like advice on how to ensure your assets are protected, our Wealth Strategists can guide you through the best strategies to safeguard your legacy.
