Is Your Inheritance Protected During Divorce?

Inheritance can feel like the last thing you want to discuss during a separation. It often carries family history, long-term plans and a sense of duty to the person who left it to you.

When a relationship ends, the question of whether inherited money is protected becomes more pressing. The law offers guidance, but the answer depends on context, need and timing. This guidance applies to England and Wales, where the family court has broad discretion over how inherited and non-matrimonial assets are treated.

What counts as inheritance in a divorce case?

Inheritance can take many forms. It might be a cash sum, property, farmland, business shares or assets held in trust. The court views these differently, but the first question will concern what you have received and when.

For a broader look at the finances during separation or divorce, see our guidance on finances and divorce.

Is inherited money automatically protected?

There is no automatic protection. In England and Wales, the court distinguishes between matrimonial and non-matrimonial assets. Matrimonial assets are built up during the marriage. Non-matrimonial assets include inheritance. In principle, inherited wealth sits outside the joint pot.

In practice, the court’s main priority is need. If both parties can be housed and financially secure without touching inherited assets, the court is more likely to leave that money intact. If one person’s needs cannot be met without using it, the position changes.

When can inheritance be ring-fenced?

Inheritance is more likely to be treated as non-matrimonial when the marriage is short, the inheritance arrived late in the relationship, or the funds have been kept separate. The court looks at behaviour rather than intention. You may see the inheritance as yours alone. The evidence must support that.

Factors that support ring-fencing

• Clear financial separation
• No joint benefit or use
• Short marriage
• Inheritance received after separation

One important exception involves the family home. If inherited money was used to buy the home, or if an inherited property became the main residence, the court will usually treat it as a matrimonial asset. The family home is rarely ring-fenced, even if it originally belonged to one person.

When can your inheritance be shared in a divorce settlement?

If needs cannot be met from the matrimonial assets alone, the court can use inherited wealth to fill the gap. This may happen where inherited money has funded joint expenses, renovations or investments, or where the marriage has been long and both partners have relied on the inherited asset for lifestyle or income.

This is common in higher-value arrangements. Read more in our section on high net worth divorce.

Examples of mingling

• Paying the mortgage with inherited funds
• Renovating the family home
• Using inheritance for living costs or school fees
• Putting inherited money in a joint account

Does timing affect how inheritance is treated?

Yes, timing is a significant factor. The court looks at when the inheritance was received and how it interacted with family life.

How does mingling change the court’s view?

Mingling is the point at which inheritance loses its separate identity. If the court sees clear evidence that inherited money became part of the marital economy, it becomes harder to argue that it should be ring-fenced. This may be direct, such as paying for joint property, or indirect, such as using inherited capital to support a family business.

What happens if the inheritance is tied up in property or a family business?

Not all inheritance is liquid. Property, farms and business interests can be difficult to divide. Valuation is often complex. Practical options may also be limited. Selling an asset is not always realistic or desirable.

The court may look at other ways to reach a fair outcome. It might adjust different assets to keep the inherited property intact. One person may retain the business and provide a lump sum instead. In some cases, income from the inherited asset can help meet ongoing needs.

Inheritance tied up in agricultural land or a farm brings further considerations. These cases often involve several generations, long-term planning and income linked to the land. You can read more in our guidance on farming and divorce if relevant.

Can you protect future inheritance?

Future inheritance is rarely treated as a concrete asset because it is uncertain. Wills change, circumstances shift and nothing is guaranteed. The court usually disregards it unless the inheritance is imminent or unavoidable.

What steps strengthen the protection of inherited assets?

Short, practical measures can help preserve clarity:

• Prenuptial or postnuptial agreements, which the courts give significant weight to when they are fair and properly prepared
• Keeping inherited money in a separate account
• Clear, consistent records
• Early specialist legal advice

How do we approach inheritance in complex financial cases?

Every case has its own structure. When inheritance is involved, we look carefully at how it fits within the wider financial picture and what the court is likely to prioritise.

Key considerations

• How both parties’ needs can be met fairly
• The origin of the inheritance and how it has been used
• Whether inherited assets have remained separate or supported family life
• The practical impact of property, land or business interests
• Long-term financial stability for both parties

What should you do if your inheritance is at risk?

The first step is understanding the full financial picture. The second is getting advice early, before assets become mixed or decisions are made quickly. Inheritance cases often sit at the intersection of personal history and financial need. No two situations are the same.

We can help review inherited assets, assess the likely court view and discuss a realistic approach to settlement. You can read more in our pages on finances and divorce and high net worth divorce.

If you would like tailored advice on how your inheritance may be treated, we can talk you through your options and the likely approach of the court. You can contact us on 01625 544 650 or leave us a message to arrange a confidential discussion.