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Financial Matters

Inheritance and Divorce

In the Courts of England and Wales, there is usually a 50/50 split in assets for each spouse.

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In the Courts of England and Wales, there is usually a 50/50 split in assets for each spouse. Before finalising financial claims within the divorce process, both sides are expected to get a full evaluation of all of their property, including cars, houses, pension funds, loans, debts, etc. But, when the divorce settlement includes an inheritance, that’s when the real problem begins. Here is how inheritance and divorce are connected.

How Can Austin Kemp’s Divorce Solicitors Help You?

Dealing with inheritance and divorce is always more complicated and may require specialist advice. At Austin Kemp Solicitors, we can help couples by explaining the practical and legal realities of their problem. Our experts are skilled negotiators that have the right expertise and knowledge to support everyone involved.

Our high-net divorce expertise

High Net Worth

We deal with many high-net-worth individuals with all levels of complicated assets. Not all family lawyers are equal and are best suited to deal with your case. At Austin Kemp, we know that protecting your assets is key. We’re here to secure your future and help keep what you deserve.

Complex Finances

Financial matters can be very complex. From pensions, multiple assets and investments, to real estate. Our in-house team of financial experts can help you navigate uncertainty and help you get your fair share.

Business Interests

Whether you are a business owner, or your spouse is. We can either protect, or help you get your fair share. Whatever stands in your way, we can help.

International Divorce

We’ve helped clients with complicated assets around the globe. From property, to multiple business interests. In our vast experience, we’ve helped work on over £1 billion worth of assets.

bob

High Net Worth

We deal with many high-net-worth individuals with all levels of complicated assets. Not all family lawyers are equal and are best suited to deal with your case. At Austin Kemp, we know that protecting your assets is key. We’re here to secure your future and help keep what you deserve.

bob

Complex Finances

Financial matters can be very complex. From pensions, multiple assets and investments, to real estate. Our in-house team of financial experts can help you navigate uncertainty and help you get your fair share.

bob

Business Interests

Whether you are a business owner, or your spouse is. We can either protect, or help you get your fair share. Whatever stands in your way, we can help.

bob

International Divorce

We’ve helped clients with complicated assets around the globe. From property, to multiple business interests. In our vast experience, we’ve helped work on over £1 billion worth of assets.

Talk to us now on 0333 311 0925

Inheritance and Divorce in Family Law UK: What You Need to Know

Inheritance can take different forms, for example, assets (i.e. vehicle, jewellery or house) or money. If you were to receive an inheritance in the future or if you have already received it, it may not be automatically included when couples split their assets during divorce proceedings in England and Wales.

However, you might have to take it into account based on different circumstances. When you do need to negotiate your assets, a solicitor will divide them into two categories: (1)

– Non-matrimonial – This includes property and cash that you’ve gained from a source outside the marriage.
– Matrimonial – This includes property and cash you or your former spouse gained during your marriage.

A non-matrimonial asset, like inheritance, could be excluded from the financial settlement. However, that may not be the case if the inheritance goes into the matrimonial pot. The matrimonial home is considered a joint asset, regardless of who paid for it. Any inheritances invested into the family home, often become jointly owned.

If you inherited a property before you got married, it could also fall into the category of a matrimonial asset. This will vary based on a number of factors, such as the size of the inheritance, the financial needs of both partners, the needs of the family, such as children, and the duration of the marriage.
If you received an inheritance while you were married, there is a high chance that the court will consider it a matrimonial asset.
An inheritance obtained shortly before the end of the marriage has lower odds of being considered a matrimonial asset, depending on the family’s future financial needs. The only way to know for sure if your assets are deemed matrimonial is to talk to a specialist finance and divorce solicitor. (2)

Want to get a rough estimate of what happens to your finances after divorce? Our divorce calculator can help.

Does a spouse automatically inherit everything?

Any asset that is jointly owned will automatically pass to the surviving spouse unless you write a Will. This can help you exclude your spouse from inheriting everything after you die and allocate those assets to someone else, like children or other family members. If both partners are living while they are signing the divorce, the assets are usually split in half.

Any inheritance you will receive in the future is not often taken into account when you are divorcing. However, this may not be the case if the person giving that inheritance is anticipated to die in the foreseeable future and the amount they will leave you is of significant value.

How to Protect Your Assets

If you share a family home or a business, it is important to minimise the risks of divorce. You can separate your marital and business finances to decrease the odds of your spouse taking your assets after divorce. The options below can help.

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Enter into a post-nuptial or pre-nuptial agreement

A pre-nup is one of the most reliable ways of protecting your assets in case you want to end your marriage. Spouses can sign an agreement that will clearly state what the ex-spouse would be entitled to after the divorce.

Although these agreements are not yet legally binding in the UK, if they are properly arranged, they can come in handy and carry weight when making decisions in court. The agreements could also be used as proof in case of conflicts or misunderstandings.

Negotiate a fair settlement

Try collaborative law or mediation to find the middle ground. Options such as these can help you find solutions to different situations and protect your finances such as business interests, pensions, pre-marital assets etc. Our team at Austin Kemp Solicitors can help you overcome various obstacles.

The Financial Impact

Divorce can place significant financial pressure on both parties, particularly where disputes over assets, inheritance or ongoing financial support remain unresolved. Legal costs can increase where matters become prolonged, which is why it is often beneficial to address financial issues as early and constructively as possible.

Financial settlements are not always based on a simple equal division of assets. The outcome will depend on a range of factors, including each party’s financial needs, income, future earning capacity, pensions, and the nature of any assets acquired before the marriage or through inheritance. Following Standish v Standish [2025] UKSC 26, the source of certain assets may also be an important consideration when determining how they should be treated.

As part of the divorce process, it can be helpful to review your income, expenses, savings and long-term financial plans so that you have a clear understanding of your future financial position.
Where possible, reaching an agreement through negotiation, mediation or other forms of dispute resolution may help reduce legal costs and avoid lengthy court proceedings. However, where an agreement cannot be reached, obtaining specialist legal advice is important to ensure your financial interests are protected.
At Austin Kemp Solicitors, our experienced family law team can provide tailored advice on divorce, inheritance and financial settlements.

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We know that getting a divorce divides your world into two. We're here to guide you through the uncertainty and emotional rollercoaster. One step at a time.

First Class Service

Choose Austin Kemp and you'll get a premium service in all areas. We aren't the cheapest out there, but what we are is the best solution to help you get what you deserve.

Impeccable Advice

Our advice and strategy is second to none. Not all law firms are created equal. Because we're specialists, our depth of knowledge is often the edge that makes the difference.

Challenging Thinking

We work with you to get what you deserve. We don't mean that it's going to be easy – but we're here to support you every part of the journey.

Industry Leading Professionals

We have A-players at every level. We employ the best of the best, and that's why our clients choose us. Because getting the right solicitor can mean your future takes a different path.

The Right Fit

We'll make sure you have a solicitor that fits your case type. If you want a certain approach to your case – we'll make sure your solicitor has the right style for you.

Empathy

We know that getting a divorce divides your world into two. We're here to guide you through the uncertainty and emotional rollercoaster. One step at a time.

Talk to us now on 0333 311 0925

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