How is inheritance after separation but before divorce dealt with?

Inheritance can become a complicated issue when a couple has separated but not yet divorced. In England and Wales, separation alone does not end the financial ties between spouses.

Until a final divorce settlement is reached and approved by the court, either party may still have a claim against the other’s assets, including inheritances. This often comes as a surprise to those who assume that physical separation ends financial obligations.

If you receive an inheritance after separating, whether it is included in the divorce settlement depends on several factors. The court has discretion to decide what is fair, and while inheritances are sometimes treated as separate from matrimonial assets, they are not automatically excluded. If the inheritance is needed to meet the housing or income needs of either spouse or the children, the court may take it into account when dividing assets. For example, if one spouse inherits a substantial sum and the other has limited resources, the inheritance may be considered to ensure both parties’ needs are met.

Timing can also make a difference. If the inheritance was received late in the marriage or after separation, it may be treated differently from assets built up jointly during the relationship. However, if the money is mixed with joint assets, such as being used to pay off a mortgage or deposited in a joint account, it is more likely to be seen as part of the matrimonial pot.

It is also important to understand that until a financial settlement is finalised and made legally binding through a consent order, claims remain open. This means that even years after separation, a spouse could potentially pursue a claim on an inheritance unless matters have been formally resolved. This is why solicitors strongly advise reaching a settlement as soon as possible after separation, to avoid uncertainty and protect new assets.

For those who are concerned about protecting an inheritance, steps can be taken. Keeping the funds separate and not mingling them with joint assets can help, as can seeking a financial settlement promptly. In some cases, pre- or post-nuptial agreements may also offer protection, though they are not automatically binding, they are increasingly given weight by the courts if fair and properly prepared.

Inheritance is often emotionally significant as well as financially valuable, and disputes over it can cause additional strain during separation. Each case depends on individual circumstances, but the guiding principle remains fairness and the needs of all involved.

If you are separated and worried about how inheritance may be treated in your divorce, it is important to seek advice before making any financial decisions.

Our family law solicitors can provide clear guidance on protecting your inheritance, negotiating settlements, and ensuring that your financial future is secure.