Divorce and inheritance – Everything you need to know
20 December 2023
Taylor Bracewell
When faced with a divorce involving family items such as inheritance and belongings, it can be a daunting time. Many people, when going through a divorce, suddenly have to think about who gets what when it comes to inherited items. Understanding and navigating this area of law is complex.
In this article, we will explain what happens with inheritance when going through a divorce, providing you with the knowledge to navigate the complexities of divorce and inheritance.
What is inheritance?
Inheritance typically refers to the transfer of assets, property or money from one person to another, often occurring after the death of the person owning the assets. The transfer of assets should be outlined in a legal document called a Will. Inheritance can include various types of assets, including but not limited to money, real estate, jewellery, stocks, and other possessions.
What’s the connection between inheritance and divorce?
When a couple decides to get a divorce, they often find themselves puzzled by the link between inheritance and divorce. The connection is easy to understand because anything one spouse inherits during the marriage might become a factor in the divorce process. Even though the person receiving the inheritance may argue that these assets should be kept separate from the marital assets being divided, it is a common point of confusion.
The relationship between inheritance and divorce extends to assets acquired before the marriage. In such cases, assets inherited before the marriage could also be considered part of the overall marital assets. This situation may lead to one party claiming the inherited assets and funds owned by the other party.
Is inheritance split in divorce UK?
The short answer is yes, inheritance could be shared on divorce in the UK. However, this depends on whether the inheritance is considered a marital asset or a non-marital asset. It is important to distinguish between marital assets and non-marital assets, when considering how assets will be divided in divorce proceedings.
- Marital assets – These are all assets held in joint names, or acquired through the joint endeavours of the parties during the marriage, meaning that the asset may be in one party’s sole name.
- Non-marital assets – These assets refer to any property or assets that are considered solely owned by one spouse in a marriage. These assets are typically excluded from the marital estate when couples go through a divorce.
The starting point is that marital assets will be shared equally. However, non-marital assets may be preserved by the owner of the asset, unless the court determines it necessary to share the asset to meet needs. Therefore, non-marital assets can still be shared, should the court deem it necessary and appropriate in all the circumstances of the case.
When looking at whether an asset is non-marital, it is important to consider whether that asset has been kept separately, for example, inheritance monies retained in a sole bank account; or whether it has been intermingled. Inheritance money, for example, can be intermingled if it has been placed in a joint bank account, or utilised in paying some of the mortgage on the marital home.
In these circumstances, the inheritance may then have become a marital asset and is no longer considered non-marital. Therefore, the inheritance could fall to be shared equally.
How can Taylor Bracewell’s family lawyers help?
Understanding and determining whether assets are marital or non-marital can be complex and legal advice should be obtained before deciding. Wherever possible, assets such as inheritance and personal injury monies should be kept separately to avoid assertions that they have now become marital assets.
Here at Taylor Bracewell our family lawyers have had years of experience in dealing with the division of assets upon divorce and are here to help. Our experts can provide you with the knowledge needed to understand how your inheritance is likely to be treated upon divorce. Divorce and inheritance is a complex area of law you don’t need to navigate alone, our family team are here to help by either calling 01302 341 414 for our Doncaster lawyers or 0114 272 1884 for our Sheffield lawyers. Alternatively, you can contact the team by leaving a call-back request via our online enquiry form.
