Inheritance and Divorce

Dealing with inheritance during a divorce is a particularly sensitive experience. Many people going through a separation are also coping with bereavement, and understanding how the law treats inherited assets can feel overwhelming at a difficult time.

Whether you’ve received an inheritance and want to protect it, or you’re wondering whether your spouse’s inheritance should form part of the financial settlement, getting clear, practical advice early makes a real difference.

At Glanvilles Damant, our family law solicitors advise clients across the Isle of Wight on financial matters involving inherited assets during divorce. We can help you with:

• Advising on whether inherited assets are likely to be treated as matrimonial or non-matrimonial
• Negotiating financial settlements where inheritance is a significant factor
• Helping you ring-fence inherited assets during financial proceedings
• Advising on pre-nuptial and post-nuptial agreements to protect inherited wealth
• Reviewing trust structures and their impact on divorce proceedings
• Supporting you through full financial disclosure requirements

Contact our inheritance and divorce solicitors in Newport, Isle of Wight

If you’d like to speak with a solicitor about inheritance and divorce on the Isle of Wight, please get in touch with our team. Call us on 01983 527878, email hello@gdlegalservices.co.uk, or contact our Newport office directly and we will get back to you promptly.

Our inheritance and divorce services

Advising on matrimonial and non-matrimonial assets

Understanding how inherited assets are likely to be classified is the starting point for any financial settlement involving inheritance. We review the origin of the assets, how they’ve been held or used during the marriage, and the overall financial picture to advise you on the strength of any ring-fencing argument. You’ll receive clear, practical advice on your position before any negotiations begin.

Negotiating financial settlements

Where inheritance is a significant factor in your settlement, early and well-informed negotiation is important. We represent you in discussions with your spouse or their solicitors, whether directly, through mediation, or as part of wider financial proceedings, with a focus on securing a fair outcome that protects your financial position. If you’d like support with a divorce financial settlement more broadly, our team is here to help.

Ring-fencing inherited assets

Arguing that inherited assets should be excluded from the matrimonial pot requires careful preparation and a clear evidential record. We help you gather the documentation needed to support a ring-fencing argument and present it effectively during financial proceedings. Where ring-fencing isn’t straightforward, we advise on the realistic prospects and alternative approaches.

Pre-nuptial and post-nuptial agreements

A pre-nuptial or post-nuptial agreement can formally record that specific assets, including inheritance, are to remain separate. Courts in England and Wales give such agreements significant weight where they are entered into freely, with full and frank disclosure of finances and independent legal advice on both sides. We advise on and draft these agreements for clients across the Isle of Wight.

Trust structures

Trust arrangements can offer a degree of protection for inherited assets, but the court has power to look behind trust structures in certain circumstances. We review existing trust arrangements, advise on their likely impact in financial proceedings, and work with you to understand your options. For related issues involving a deceased estate, our claims against a deceased estate service may also be relevant.

Financial disclosure

Both parties in financial proceedings are under a strict legal duty of full and frank disclosure. We support you through this process, helping you prepare an accurate and complete picture of your finances, reviewing your spouse’s disclosure, and identifying where further information may be needed.

Inheritance received after separation but before divorce

Timing matters. If you receive an inheritance after separating from your spouse but before the divorce is finalised, the court will consider how recently the separation occurred, whether finances were still shared at the time, and how the inheritance has been handled since.

Generally, the later in the separation the inheritance is received and the more clearly it’s been kept separate, the stronger the argument that it shouldn’t form part of the matrimonial settlement. There’s no fixed rule, and individual circumstances will always affect the outcome.

How to protect inheritance in a divorce

If you’re concerned about protecting inherited assets, there are practical steps you can take:

• Keep inherited assets separate. Avoid placing inherited cash into joint accounts or using it to fund shared family expenses. A clear record of where the funds came from is important.
• Consider a pre-nuptial or post-nuptial agreement. These agreements can formally record that certain assets are to remain separate and carry significant weight with the court where properly executed.
• Place assets in a trust. Trust structures can offer some protection, though the court has power to look behind them in certain circumstances.
• Maintain documentation. Keep records linking inherited assets back to their source, including solicitors’ correspondence, bank statements, and the Grant of Probate (the document that authorises an executor to administer the estate).

If you’re dealing with complex finances involving inherited wealth, our solicitors can advise on the most appropriate approach.

Ring-fencing inheritance in divorce

Ring-fencing refers to identifying inherited assets and arguing they should be excluded from the matrimonial pot when calculating a financial settlement. Courts are more willing to ring-fence inherited assets where:

• The inheritance was received before the marriage, or late in the marriage and kept clearly separate
• There are sufficient matrimonial assets to meet both parties’ needs without drawing on the inheritance

Ring-fencing becomes harder to argue where needs-based considerations override it. If the matrimonial assets aren’t enough to adequately support the financially weaker party, the court may decline to ring-fence inherited wealth even where it has been carefully kept separate. The strength of any ring-fencing argument is highly fact-specific, and taking early legal advice is essential.

Inheritance and divorce solicitors on the Isle of Wight

At Glanvilles Damant, our family law solicitors have experience advising clients across the Isle of Wight on financial matters involving inherited assets during divorce. Whether you’re looking to protect your financial position or understand how a court is likely to treat an inheritance, we provide calm, supportive guidance tailored to your circumstances.

We work transparently, explaining your options at every stage and helping you make informed decisions about how to proceed. Our team also advises on related matters including consent orders, pension claims on divorce, and business assets in divorce. For general guidance on dividing finances during divorce, GOV.UK is a helpful starting point.

Frequently asked questions about inheritance and divorce

What counts as inheritance in a divorce?

Inheritance covers any asset received from a deceased person’s estate, whether under a Will or through the rules of intestacy (which apply when someone dies without a valid Will). This includes cash, property, investments, personal items of value such as jewellery, and inherited business interests. Any growth in value of those assets since they were received may also be relevant to financial proceedings.

Is inheritance a matrimonial or non-matrimonial asset?

English family law draws a distinction between matrimonial assets, those generated during the marriage such as joint savings and the family home, and non-matrimonial assets, which are brought into the marriage or received from an external source such as a gift or inheritance.

Matrimonial assets are those built up jointly during the marriage, such as shared savings and the family home, while non-matrimonial assets are those brought into the marriage or received from an external source, such as gifts or inheritance. Non-matrimonial assets tend to carry less weight in a financial settlement, as courts generally treat them as more likely to remain with the party who holds them. However, this distinction isn’t fixed. If non-matrimonial funds have been mixed with joint finances, for example by using inherited money to pay for the family home or placing it into a shared account, those assets can lose their separate character over time and become harder to ring-fence.

Is my spouse entitled to my inheritance in a divorce?

Not automatically. Inheritance is generally treated as a non-matrimonial asset, meaning it doesn’t automatically form part of the shared pot. However, where joint assets aren’t sufficient to meet both parties’ needs, or where inherited funds have been mixed with family finances, the court may include it in the settlement. The court has broad discretion under section 25 of the Matrimonial Causes Act 1973 to consider all financial resources.

How does the court decide whether to include inheritance in a settlement?

Under section 25 of the Matrimonial Causes Act 1973, the court considers each party’s financial resources and likely future resources, their needs, the length of the marriage, the standard of living during it, and the contributions each party has made. The welfare of any children is always the court’s first consideration. In practice, the longer the marriage and the greater one party’s financial needs, the more likely inherited assets are to be drawn in, even where they were initially non-matrimonial.

Does it matter when I received the inheritance?

Yes. Timing is a relevant factor. Inheritance received before the marriage, or after separation and kept clearly separate, is more likely to be ring-fenced. Inheritance received during the marriage and mixed with joint finances is less likely to be treated as non-matrimonial.

Is a future inheritance taken into account in divorce?

Courts are generally reluctant to speculate on anticipated inheritance. A future inheritance isn’t guaranteed: the person making the Will may change it or spend the estate. Where an expected inheritance is substantial, imminent, and effectively certain, a court may treat it as a financial resource likely to be available in the foreseeable future. This remains a narrow exception assessed on the specific facts of each case.

Can my ex claim my inheritance after the divorce is finalised?

Once a financial order has been made, financial claims between former spouses are generally settled. Without a financial order in place, an ex-spouse may still be able to make a claim against inherited assets, potentially years after the divorce. If you don’t currently have a financial order, it’s important to seek advice promptly.

Can a prenuptial agreement protect my inheritance?

A pre-nuptial or post-nuptial agreement can be a strong factor in protecting inherited assets. Courts give increasing weight to such agreements where they are entered into freely, with full and frank disclosure of finances and with independent legal advice on both sides. They aren’t automatically binding in England and Wales, but a well-drafted agreement can be highly persuasive.

What happens to inheritance held in a trust during divorce?

A trust can offer some protection, but the court has power to look behind trust structures, particularly where the divorcing spouse is a trustee or primary beneficiary and effectively controls the assets. The outcome depends on the nature of the trust and the specific facts of the case.

Contact our inheritance and divorce solicitors in Newport, Isle of Wight

If you’d like to discuss inheritance and divorce with one of our family law solicitors on the Isle of Wight, please get in touch. Call us on 01983 527878, email hello@gdlegalservices.co.uk, or contact our Newport office directly and we will get back to you promptly.