When you get married, most assets – even those owned prior to marriage, become available as joint property. All such property can then be included within a financial settlement, should you decide to divorce. Whilst inheritance is not automatically included as part of the ‘joint matrimonial pot’, it can, in certain circumstances, be taken into consideration by the Family Courts in England and Wales.
If there are children involved, it might be the case that the court considers that the carer parent (the one with whom the children reside) requires additional financial support. This being the case, they will take into consideration any inheritance an individual was gifted to include both property and money.
Where the inheritance was received before the marriage, an ex-spouse may be entitled to make a claim on it if they had received the benefit of the inheritance throughout the course of the marriage. If you want to prevent this from happening, it may be possible to enter into a ‘Pre-Nuptial Agreement’ prior to marriage. Whilst not strictly legally binding in the UK, the courts do now give such agreements due attention. RJS Family Law are experts in drafting such agreements.
If inheritance is received during the course of the marriage, the Court is more likely to determine that the inheritance to be joint property – especially if the money or property was held in joint names. However, if inheritance is received after the breakdown of the marriage, or during a short marriage, it is more likely that the Court will exclude it from the matrimonial pot.
Any inheritance that might be expected in the near future is also usually excluded unless the expected inheritance is so great that it would make a substantial difference to the Financial Settlement reached. This can be the case where there are no real assets of the marriage from which a settlement can be derived. In extreme circumstances, the Court could make the decision to adjourn proceedings until the inheritance has been received.
Where an ex-spouse has re-married, there will not be any opportunity to make a claim on future inheritance as any entitlement to financial claims expires on marriage.
For further information and advice on how divorce impacts on inheritance get in touch with RJS Family Law.
