Inheritance in divorce can become a significant issue, particularly where substantial family wealth, property or trust assets are involved. Although an inheritance is not automatically divided between spouses, whether it can be protected will depend on when it was received, how it has been used during the marriage and whether the couple’s other assets are sufficient to meet their respective needs.
In this guide, we explain how inheritance is treated in divorce in England and Wales, when inherited assets may become matrimonial property, and the practical steps you can take to protect family wealth before or during marriage.
Is my spouse entitled to my inheritance if we divorce?
Inheritance is not automatically shared in a divorce. It will usually be considered “non-matrimonial” property, which means the starting point is that inherited money or property belongs to the person who received it, especially if it was received before the marriage. Therefore, it is not automatically included in the division of marital assets.
However, in England and Wales, the court’s role is to reach a fair financial outcome by considering all the circumstances of the case, including the factors in section 25 of the Matrimonial Causes Act 1973. If the matrimonial assets are not enough to meet both parties’ needs, particularly housing needs or the needs of any children, the court may take the inheritance into account.
Is inheritance always kept separate in a divorce settlement?
Not always. Whilst the starting point is that inheritance is treated as a non-matrimonial asset, if the inheritance became intermingled with matrimonial assets or used for the benefit of the family (e.g., to purchase a family home), it may be considered part of the marital assets.
When can an inheritance become part of the matrimonial assets?
An inheritance can become part of the matrimonial assets where it has been “matrimonialised”. This means the parties have treated it, over the course of the marriage, as part of their shared family wealth.
This was considered in the recent case of Standish v Standish [2025] UKSC 26. It confirmed that the key test is whether, over time, a couple have treated an asset as shared.
A simple transfer into joint names or a technical arrangement, such as for tax planning, will not necessarily be enough for inherited money or property to become a shared asset. What matters is how the asset has actually been used during the marriage. The court will look closely at the parties’ intentions.
What happens if I use inherited money to buy or improve the family home?
Using inherited money to buy or improve the family home is one of the clearest ways an inheritance will no longer be considered as non-matrimonial asset.
The family home is usually treated as a central matrimonial asset. If inherited funds have been used for an extension, renovation, deposit or mortgage repayment, the court may regard that contribution as having been absorbed into the matrimonial pot.
Can my spouse claim part of my inheritance if there are not enough other assets?
If there are not enough assets available meaning both parties’ needs will not be met, then the court may take inheritance into account in the overall division of assets if it is needed in order to meet the parties’ needs.
Even where an inheritance is non-matrimonial, the court can still look to it if the other assets are insufficient to meet both parties’ reasonable needs. This is particularly relevant where there are dependent children, where one spouse cannot rehouse without further provision, or where there is a significant disparity in financial resources.
Does it matter whether I inherited the money before or during the marriage?
An inheritance received before the marriage is more likely to be treated as non-matrimonial, especially if it was kept separate.
An inheritance received during the marriage may still be considered non-matrimonial, if it is kept separate, but the longer it has been available to the family and the more it has been used for joint purposes then the greater the risk that it will be mingled with the matrimonial assets and will be taken into account.
If you are considering divorce, our guide to starting divorce proceedings explains how financial matters can be dealt with alongside the divorce itself.
Can my spouse claim an inheritance I received after we separated?
Inheritance received after separation is generally more likely to be treated as a non-matrimonial asset, because it did not arise during the course of the marriage.
However, it should still be disclosed in financial proceedings as it may still be relevant as a financial resource. For example, if one party receives a substantial inheritance after separation and the other party cannot meet basic housing or income needs, the court may conclude that inheritance received after separation needs to be distributed in order to meet the parties’ needs.
Inheritance that you expect to receive in the future, for example from a parent who is still alive, is not usually taken into account.
However, if you finalise the divorce without putting a financial consent order in place, then your ex-spouse may be able to make a claim against that inheritance if it comes through in the future. The only way to avoid this is to make sure you have a legally binding financial settlement in place before the Final Order is issued in your divorce.
How are inherited property, businesses, investments and trusts treated in divorce?
Inherited property, businesses, investments and trusts may remain “non-matrimonial property” if they have been kept separate from matrimonial assets.
However, the court will take them into account in the overall division of assets if they are needed in order to meet the parties’ needs.
Do I have to disclose my inheritance during divorce proceedings?
Yes. Full and frank financial disclosure is required in financial proceedings. This includes inherited assets, even if you believe they should be excluded from division.
Failing to disclose any inheritance received can constitute material non-disclosure, which could result in any financial order which is agreed or determined by the court being set aside or overturned in the future.
Our guide to financial disclosure in divorce explains what the process involves, your obligations and the steps you can take to protect your interests.
How can I protect an inheritance before or during marriage?
A carefully drafted pre-nuptial or post-nuptial agreement can protect an inheritance before or during marriage. It can be used to safeguard family assets in the event of any dispute within the potential future divorce proceedings.
Although such agreements are not automatically binding in England and Wales, the court is likely to give them significant weight if they were freely entered into, both parties have a full appreciation of the implications, and it would be “fair” to hold the parties to their agreement.
However, such agreements do not oust the jurisdiction of the courts, and it remains open to a court to choose to divide a couple’s assets in a manner that differs from the agreement. Particularly if there is a flow of benefit from the inheritance to the spouse during the marriage, the courts may decide that the assets should be considered as part of the financial settlement.
Ensure the inherited asset is kept separate from matrimonial assets and not mingled with shared money during the marriage.
How do the length of the marriage and the couple’s standard of living affect what happens to an inheritance?
The longer the marriage, the more likely it is that assets have become intermingled with the couple’s shared life, although this is not a decisive factor.
In a long marriage, the court may be more willing to look at the overall resources available, particularly if both parties have organised their lives around a particular standard of living.
In a shorter marriage, especially where the inheritance was clearly kept separate, there may be a stronger argument for ring-fencing. The standard of living during the marriage is one of the section 25 factors, but it does not override needs or fairness.
What happens if my inheritance is held in a trust or I am only a potential beneficiary?
If an inheritance is held in trust, the court will look at the reality of the arrangement. Courts don’t automatically consider trusts to be marital property. They will look closely at when the trust was created and how it was funded and used to decide whether it’s marital or separate property.
If a spouse is only one of several potential beneficiaries, and there is no reliable pattern of distributions, the court may be cautious about treating the trust as an available resource. However, if trustees have historically met that spouse’s needs or are likely to make funds available, the court may take that into account when assessing resources and needs.
Speak to our Family Law team about inheritance in divorce
Inheritance can make divorce settlements more complex, particularly where significant family wealth, property or trusts are involved. Early advice can help clarify whether inherited assets are likely to remain separate and what steps may be available to protect them.
Our Family Law team advises on complex financial settlements involving inheritance and high-value assets. If you are concerned about how an inheritance may be treated in divorce, we can provide clear, strategic advice tailored to your circumstances.
Simon Magner Mawdsley
Partner | Head of Family Law
Described by clients as "an excellent listener, open and engaging", "exceptional", "reassuring" and "insightful", Simon acts for a range of clients in all aspects of relationship breakdowns including divorce, resolution of financial matters, civil partnerships, cohabitation disputes, pre- and post-marital agreements, injunctions, and children matters.
