If you are considering, or in the process of getting a divorce, it is important to bear in mind that assets from your current or future inheritance could be impacted.
During financial proceedings, the Court will divide assets into “matrimonial” and “non-matrimonial” pots. The starting point is that all assets acquired during the marriage will fall into the “matrimonial pot” and divided equally between the parties; this is known as the ‘sharing principle’.
Inherited assets from either party may be considered as non-matrimonial and may be dealt with differently from matrimonial assets and ring-fenced from the matrimonial pot. However, this is dependent on the facts of each case and on two key factors:
The Court’s priority when determining a financial settlement is to ensure that the needs of both parties and any minor children are met.
If an inheritance is received prior to the marriage, the court will take into consideration the following:
If the parties’ needs cannot be met without recourse to the non-matrimonial assets, the inheritance received prior to marriage will be included in the matrimonial pot and the Court can distribute it accordingly to ensure that the parties’ needs are met.
If the inheritance has been combined or ‘mingled’ with the matrimonial assets, this could give rise to a claim that the inheritance is to be treated as part of the matrimonial pot; for example, this could be when any funds inherited are placed into a joint account or a pre-acquired property becomes the matrimonial home.
If an inheritance has been received during the marriage, the Court is likely to consider the inheritance as part of the matrimonial pot.
The Court protects future inheritance prospects on the basis that it is uncertain whether or not the inheritance will be received and when. Therefore, it will only be on rare occasions that future inheritance will be considered by the Courts.
In financial remedy proceedings the parties owe to each other (and to the Court) a duty of full, frank, clear and accurate financial disclosure. When completing the financial statement form (Form E) parties must disclose any inheritance received and provide a copy of the Will and grant of probate.
There are options available if you wish to protect your inheritance:
Disagreements over inheritance can cause stress and acrimony for all parties involved in a divorce, however speaking to a Family solicitor with special expertise in financial claims and remedies can substantially enhance your chances of achieving your preferred outcome.
Lawrence Stephens’ experienced Family team can provide advice on all aspects of your divorce while prioritising the best interests of you and your family.
If you have a family matter you would like to discuss, please contact a member of our team below.