There is a clear distinction between inheritance received by a spouse during the course of the marriage and inheritance received following separation. When the courts consider financial matters on divorce in England and Wales, there are a number of factors that need to be analysed, with the goal of achieving fairness and meeting the needs of both parties. Inheritance is one such factor to be considered as part of this, but the general rule is that an inheritance received after the date of separation is not a matrimonial asset for division between the parties, and should generally only be considered when assessing that party’s ability to meet their own needs.
If an inheritance has already been received during the course of the marriage, it depends on how that has been treated during the marriage, and what the needs of each party to the marriage are, before it can be determined whether it should be shared on divorce and considered a matrimonial asset. An inheritance, as established in the landmark case of White v White, is often treated differently from other assets. The actual treatment can vary significantly based on specific circumstances surrounding the timing of the inheritance and whether it has been integrated into the matrimonial finances, such as by being used to purchase the family home, support the marital lifestyle, or being invested in joint assets. Once integrated into the matrimonial finances, it is difficult to argue that the inheritance is non-matrimonial and should therefore not be shared. On the contrary, it can be argued that an inheritance received during the course of the marriage, but kept separate and apart from the matrimonial finances, should be treated as non-matrimonial.
Future inheritance prospects can also be considered as part of a financial settlement, but will only be relevant in limited circumstances. The courts are reluctant to rely on the possibility of party receiving a financial asset when it is not clear how quickly this will be received and if it will be received at all, for example when someone changes their Will.
Finally, the intentions of the person who left the inheritance can also be considered. If it is clear that there was an intention that the inheritance should remain the property of one party, this intention can be considered by the court, but it is not determinative. The courts will consider this alongside other factors, predominantly the needs of the parties and any children involved. In all cases, it is important to seek advice as to your specific circumstances at the earliest opportunity.
How FJG Can Help
Ties Bouwmeester is an Associate Solicitor in our Family Law Team.
Our family law team offers clear advice and strong support throughout this process. We’ll assess your situation, prepare your application, and represent you in Court with care and professionalism. For further advice on any aspect of family law, please contact one of our team in our Colchester, Clacton or Chelmsford offices on 0845 543 5700, or via our online enquiry form.